Let’s face it, buying a home is one of the biggest investments most of us will ever make. That’s why the loan you choose can shape everything from your monthly payment to how much house you can afford.

Whether you’re a first-time buyer or an experienced investor, understanding the main mortgage types will help you make an informed decision, and know when it’s time to bring in a lending professional. Here’s a quick breakdown of three common loan options you’ll hear about in the Treasure Valley market:

Conventional Loans

Conventional loans are the most common type of home financing. They’re offered by banks, credit unions, or mortgage companies. They typically feature…

• Minimum down payment: 3–5% (20% if you want to avoid mortgage insurance)
• Credit score typically 620+
• Flexible loan amounts

Conventional loans are best for buyers with solid credit and savings, who want flexibility or plan to stay in their home long-term.

In the Treasure Valley, local lenders like Idaho Central Credit Union (ICCU), D.L. Evans Bank, and CapEd Credit Union are known for competitive conventional loan options and personalized guidance.

FHA Loans

Federal Housing Administration, or FHA, loans are designed to make homeownership more accessible, especially for first-time buyers. They’re government-backed, which means lenders can offer more lenient qualification terms.

• Minimum down payment: 3.5%
• Credit scores as low as 580 may qualify
• Includes mortgage insurance (MIP) added to monthly payments
• Can sometimes help buyers with limited savings or shorter credit history

This type of loan is best for first-time buyers or those rebuilding credit who want lower upfront costs.

Many local lenders here in the Treasure Valley, including Homebridge Financial Services, Guild Mortgage, and Premier Mortgage Resources, specialize in FHA products and work closely with Treasure Valley real estate professionals to guide first-time buyers.

Portfolio Loans

Portfolio loans are a little different. Instead of selling your loan to larger investors (like Fannie Mae or Freddie Mac), the lender keeps the loan in-house, allowing more flexibility on terms, credit scores, and property types.

• Ideal for unique properties or self-employed borrowers
• May require higher down payment (10–20%)
• Often offered by local banks and credit unions that want to build relationships

As you might guess, these loans are best for investors, entrepreneurs, or buyers with non-traditional income, or high-value properties that may not fit conventional loan guidelines.

D.L. Evans, Bank of Idaho, or Pioneer Federal Credit Union all offer this kind of loan, and are known for working closely with local buyers and property owners.

Which One Is Right for Me?

The truth is, there’s no one-size-fits-all answer. The right loan depends on your credit, income, savings, and long-term goals. If you’re not sure where to start, your next step should be connecting with a licensed mortgage professional. They can help you compare options, estimate payments, and get pre-approved before you start your home search. This will make the entire process a lot less stressful, and make it easier to find the perfect home that meets your needs.

Our Role at PMI of Tree City

Of course, we’re not lenders, and we certainly don’t pretend to be. But we do believe in surrounding yourself with the right team! Our goal is to help you make informed decisions, connect you with trusted local professionals, and ultimately find a home or investment property that fits your goals. Buying a home isn’t just about finding the right property, it’s about understanding the numbers behind it.

With the right information and a good lending partner, you can take that next step with confidence.

Reach out anytime or schedule a chat to hear more about your options.