5 Best Construction Loans in Idaho


Construction loans in Idaho are available in a wide array of options depending on the lender you choose and your personal financial situation.

The population of Idaho is growing rapidly. According to the Idaho Department of Labor, it is expected to top two million by 2031. This growth can be attributed to the low cost of living and high quality of life that Idaho offers its residents. In addition, there are many new jobs being created in Idaho due to recent business expansions and relocations.

The average price of a home in Idaho is $260,000 according to the Idaho Realtors Association. This makes it one of the most affordable states to live in America. However, the average home price has been steadily increasing over the past few years as more people move to popular cities like Boise and Twin Falls from other parts of the country looking for affordable housing options.

Many people are looking to take advantage of the ample land in Idaho to build new homes rather than purchase existing homes on the real estate market.

That said, there are plenty of other reasons to apply for an Idaho construction loan. Let’s go over a few of the benefits that many people find when they decide to apply for home construction loans vs. traditional mortgages in Idaho. 

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Advantages of using a new construction loan in Idaho

There are many reasons borrowers use construction loans. Getting your loan approved before you build your dream home is one advantage. If you pursue a single close loan, you can lock in things like the interest rate, down payment, and total construction amount without having to worry about future changes to your personal financial situation or the economic markets broadly.

Another advantage of a construction loan is that by building your own home you get to control the entire process from the architects to the blueprints to the builder. Even though building a home can take some time, many people prefer controlling the process from start to finish.

Applying for a construction loan is different from traditional mortgages. There is no existing home to appraise, so the loan is made based on your credit strength, the trust in the builder to complete the project and the ability of the bank to oversee the process. 

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4 Best construction loan lenders in Idaho

1. Beehive Federal Credit Union

If you’re looking for a credit union, Beehive Federal Credit Union is an option in Idaho with a long history of providing financial services to citizens of Idaho. They offer a construction loan product throughout Idaho.

We did some research to better understand the Beehive Federal Credit Union construction loan terms and were surprised by how much published information they provided. Here are the highlights:

  • 1% origination fee
  • All other fees are below industry average
  • In house draws, get your money faster
  • Up to two draws a month
  • One time close
  • Same day approval
  • If you get the construction loan completed before 9 months we will refund up to $500 dollars in fees

If you’re interested in connecting directly with a loan officer at WaFd that specializes in construction loans, we can put you in touch with them directly.

2. Washington Federal Bank (WaFd)

Washington Federal Bank (WaFd) is a regional bank but has offices throughout the southwest and northwest covering eight states. Based in Washington, they also lend in Idaho and have a construction loan product worth exploring.

We reached out to someone in the Idaho office of WaFd to learn more about their construction loan and here is what they said:

  • Payment options quoted may include estimates of taxes & insurance, so actual payments may be higher.
  • Loan rates are subject to credit approval.
  • Rates for owner occupied homes only.
  • We handle all draws and inspections during the construction phase.
  • All-in-One Construction to Permanent Loan, construction and permanent financing are conveniently rolled into one loan, so the permanent interest rate is locked in before you begin the home building process.
  • Has a cross-collateral loan program, where you may be able to wait to sell your current home until after you move into your new home.

If you’re interested in connecting directly with a loan officer at WaFd that specializes in construction loans, we can put you in touch with them directly.

3. Bank of Idaho

The Bank of Idaho is a small bank in Idaho with around $750 million in total assets. They serve the entire state of Idaho covering business, personal, wealth management and, naturally, construction loans.

We reached out to Bank of Idaho to ask a few questions about their construction loan options. Here’s what we learned:

  • Interest-only payments while construction is taking place.
  • Once construction is complete, the loan can be rolled into a permanent mortgage.
  • Local decision-making.
  • Loan financed into permanent term mortgage at end of construction

If you’re interested in connecting directly with a loan officer at Bank of Idaho that specializes in construction loans, we can put you in touch with them directly.

4. Wintrust Mortgage

Wintrust Mortgage is one of the top 20 bank-owned retail mortgage originators in the country that originates in excess of $4 billion in loans annually in all 50 states. 

Recently we asked Wintrust Mortgage to provide us with details on their construction loan and this is what they said:

  • One-Time Closing. Only pay the closing cost once
  • Lock in a fixed rate upfront and avoid interest rate risk
  • FHA, VA, and Conventional options
  • 0% Down up to $822,375 (VA ONLY)
  • 3.5% Down up to FHA County Limits ($356,362-822,375) 
  • 10% Down on Second homes
  • FICO 680+
  • Loans must include building no Lot/Land Loans 
  • Maximum of 10-acres per build site
  • Stick Built and Modular Homes ONLY
  • NO log homes or metal homes (barndominium)
  • Tear Down and Rebuilds do qualify
  • No self-build or owner builders. The builder must be approved. 
  • Does Not allow ADUs (Accessory Dwelling Unit – Granny Flat/Garage Conversions/Basement)
  • Now lending in all 50 States

If you’re interested in connecting directly with a loan officer at Wintrust Mortgage that specializes in construction loans, we can put you in touch with them directly.

Does an Idaho construction loan make sense for you?

A construction loan can be a great way to finance your next home project. You might want to consider a construction loan if you’re planning on building a new home or renovating an existing one. If you’re doing a major renovation, you may also be able to use some of the loan amount for other expenses such as knocking down walls, adding rooms, and other items required for the work.

But before you jump into taking out a construction loan, it’s important that you know whether this type of financing is right for you. Here are some things to think about:

What are your options? Construction loans are typically offered by banks and other financial institutions. You may also see these loans offered through credit unions. It’s important to compare rates and terms among several lenders before deciding on one. If online banking is important to you, you may want to consider that as well.

Will you qualify? Most lenders will require you to have a good credit score in order to qualify for an Idaho construction loan, but some will make exceptions if there is equity in your property or if you have income that can be used as collateral. However, having bad credit can make it harder to get approved, so be prepared with good documentation and disclosures when applying.

If you’re looking to explore construction loans in other states, check out our national guide to construction loans and get started exploring all 50 states.

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Joshua Holt

Josh’s blog has become my one-stop shop for the latest in financial news, strategies, and tactics. There are plenty of other finance and investing sites, but nothing so squarely targeted at lawyers. If you’re a lawyer who wants to better understand your finances and the markets, it’s a must read! —Keith Lee

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