Buying a home in North Idaho is exciting, but many buyers hit pause when they hear “20% down.” The good news? That number is optional. In reality, most buyers put far less down and still land strong, affordable deals in today’s market.
Quick Take:
You don’t need 20% down to buy a home in North Idaho. Most buyers get in with far less, often between 0% and 3.5%, depending on the loan program. With local down payment assistance options, your upfront costs could be significantly lower than expected.
Can you really buy a home in North Idaho with little or no money down?
Yes. Loan programs like FHA, USDA, VA, and low-down-payment conventional loans make it possible to purchase with as little as 0% to 3.5% down. Idaho also offers assistance programs that help cover your initial costs.
If you’re planning to buy a home in Kootenai County, the question of how much cash you need upfront is likely top of mind. Let’s walk through how down payments really work in our market and how Idaho programs can help you take the next step toward ownership.
Loan Programs That Shape Your North Idaho Down Payment
You may have heard that you need to save 20% of the purchase price before you can buy a home. That’s outdated advice. Here’s a breakdown of the most common loan types available in North Idaho:
- Conventional Loans: As little as 3% down for first-time buyers, depending on credit and income
- FHA Loans: 3.5% down for buyers with a credit score of 580 or above
- VA Loans: 0% down for eligible military veterans and their spouses
- USDA Loans: 0% down if the home is in a qualifying rural area and you meet income limits
For a $400,000 home, that means:
- 3% down = $12,000
- 3.5% down = $14,000
- 0% down = $0 (plus closing costs)
Many areas around Post Falls, Rathdrum, Athol, and Hayden qualify for USDA financing, which helps reduce the upfront burden for rural and semi-rural buyers.
Why 20 Percent Is Optional, Not Required
While putting 20% down eliminates private mortgage insurance (PMI), most buyers choose a lower amount so they can buy sooner or conserve cash for renovations and reserves. PMI is simply a monthly cost that can be removed later as you gain equity. In many cases, waiting to save 20% may cost you more in home price appreciation than it saves in fees.
Today’s mortgage landscape is designed to support qualified buyers who are financially stable but don’t have six figures saved up. The real challenge is knowing what programs you’re eligible for and how to structure your offer accordingly.
Idaho’s Down Payment Assistance Programs
If you’re worried about how to cover your North Idaho down payment and closing costs, Idaho Housing and Finance Association (IHFA) has multiple solutions. These programs are designed for homebuyers who:
- Meet income limits for their county
- Will use the property as their primary residence
- Complete homebuyer education and meet credit requirements
Depending on the product, buyers may receive grants or second mortgages that cover up to 7% to 8% of the home’s purchase price. In some cases, you may only need to bring $500 of your own funds to the table.
Working with a local lender who understands IHFA programs is key. Local lenders like Idaho Central Credit Union work directly with IHFA to help eligible buyers access these assistance programs while securing a competitive home loan. You’ll also want a Realtor, like Janna McRoy, who can help you identify qualifying homes and negotiate seller-paid closing costs when possible.
What Buyers Are Actually Putting Down in North Idaho
Most buyers in today’s market are putting down less than 20%, especially first-time homeowners. According to NerdWallet’s 2025 mortgage data, the median down payment among U.S. homebuyers was 19%, while first-time buyers put down about 10%.
Given that many entry-level homes in Coeur d’Alene and Sandpoint start around $400,000, saving 20% would require $80,000. That target pushes homeownership out of reach for many buyers who are otherwise ready.
In contrast, using a 3.5% loan and pairing it with assistance could reduce your upfront cash requirement to around $14,000 or less.
Final Thought: Your North Idaho Down Payment Might Be Smaller Than You Think
You don’t need to wait years to save a massive lump sum before entering the North Idaho real estate market. Between low-down-payment loan programs and strong Idaho assistance options, your path to homeownership may be more achievable than you realized.
Want help calculating your personal down payment needs?
Connect with Janna McRoy to take the next step.