Summary: FHA loan limits have increased for 2020 in Boise and the rest of the nation. In this article, we’ll discuss what the new loan limit is and how that may affect your home buying process.
Federal housing officials announced in December 2019 that FHA loan limits for Boise and all other cities across the country would be increased in 2020. This is good news for borrowers who are considering using this loan program to purchase a home in 2020.
New FHA Loan Limit for Boise Area: $366,840
In the Boise area, the FHA loan limit for a single-family home will increase to $366,840 in 2020. This number applies to all of Ada, Boise, Canyon, and Gem counties, as outlined in the chart below:
| County Name | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
| ADA | $366,850 | $469,600 | $567,650 | $705,500 |
| BOISE | $366,850 | $469,600 | $567,650 | $705,500 |
| CANYON | $366,850 | $469,600 | $567,650 | $705,500 |
| GEM | $366,850 | $469,600 | $567,650 | $705,500 |
| OWYHEE | $366,850 | $469,600 | $567,650 | $705,500 |
These four counties will have higher loan limits than most of the centers in the state because of higher home values across the Boise area. Most other counties in Idaho will have lower limits than Boise in 2020, with the exception of the following counties: Blaine, Camas, and Teton (see chart below).
| County Name | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
| BLAINE | $646,300 | $827,400 | $1,000,100 | $1,242,900 |
| CAMAS | $646,300 | $827,400 | $1,000,100 | $1,242,900 |
| TETON | $765,600 | $980,325 | $1,184,925 | $1,472,550 |
FHA loan limits went up for all counties in Idaho.
The new limits will apply to FHA loans as of January 1, 2020, and they will remain unchanged until the end of the year. (These loan limits are generally revisited at the end of every year and modified when increasing home prices warrant it.)
As of December 2019, the median home value in Boise was around $310,100, which is pretty close to the new FHA loan limit for 2020.
Fast Facts: How This Mortgage Program Works
We’ve written plenty about the FHA loan program over the years. Here’s a brief recap of the important points from those other articles:
- The Federal Housing Administration FHA) insures FHA home loans against losses from loan defaults. Although this insurance policy is designed to protect lenders that issues these loans, it also allows for flexible eligibility requirements for borrowers.
- FHA loans require a minimum down payment of 3.5%. This is an attractive feature for borrowers who have limited funds to work with, particularly first-time homebuyers. That said, this program is not limited only to this demographic of buyers.
- The FHA loan program requires mortgage insurance premiums to be paid by borrowers. Conventional (non-FHA) mortgages also require mortgage insurance with low down payment amounts, these insurance premiums can be canceled when a certain equity level has been reached. On the other hand, the annual insurance premium for FHA loans must be paid over the entire life of the loan.
- The Federal Housing Administration (FHA) has mandated limits on the loans it can insure, which vary by county and are looked at annually in relation to housing prices.
Need a Mortgage?
Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.
