Idaho Housing Market Update 2025: FIRPTA, New Homeowner Exemption Rule, and FHA Mortgage Insurance News As fall turns into winter across the Treasure Valley (Boise, Meridian, Nampa, and Caldwell), here is your essential Idaho Housing Market Update 2025. We break down the unexpected FIRPTA withholding surprise, the critical new Idaho Homeowner’s Exemption license rule, and a major legislative update regarding FHA mortgage insurance. As a Licensed Mortgage Advisor for 15+ years, I ensure my clients and referral partners navigate these changes with confidence. Your Idaho housing update 2025 video is posted below for an even deeper explanation. FIRPTA Withholding: The 15 Percent Surprise Idaho Sellers Aren’t Expecting FIRPTA, the Foreign Investment in Real Property Tax Act, is becoming a major issue in Idaho real estate closings. When a non-permanent resident sells a home, the title company is federally required to withhold up to 15 percent of their net proceeds until federal taxes are officially filed. In real life, this has blindsided sellers who depended on all their equity to finance their next purchase. If your buyer or seller is working with a non-permanent resident, ensure FIRPTA questions are part of the conversation early in the transaction. This is a crucial step in maintaining a smooth closing process (The FIRPTA issue is discussed around [00:00:08]). Critical New Idaho Homeowner’s Exemption Rule Beginning July 1, Idaho now requires an Idaho driver's license in order to file for the Homeowner's Exemption. This is a non-negotiable step for new residents. If your clients move here from Oregon, Washington, Utah, or anywhere else in the country, they must update their driver's license *before* their exemption application can be approved by the county. Filing the exemption with an out-of-state license will result in an automatic rejection. To save your clients significant headaches and ensure they receive this valuable tax benefit, advising them to schedule an appointment at the Idaho DMV right after closing is essential (This rule is highlighted around [00:01:09]). 50-Year Mortgages and Portable Mortgages: Why They Won’t Happen Two ideas recently grabbed national attention: the 50-year mortgage and the portable mortgage. While they sound appealing on talk shows as potential fixes for affordability, as a lending professional, I can confirm neither is realistic. Federal rules, investor guidelines, and strict risk management protocols make them basically impossible to implement on a broad scale today (See the video discussion on these myths starting at [00:01:58]). More importantly, they do not help affordability the way people think they do. Your clients are better served by solid, expert advice on real programs that exist today, especially those designed for first-time homebuyers in the Treasure Valley. I have linked separate blog posts below if you want the full explanation on these mortgage myths. Link to Full 50-Year Mortgage Explanation Link to Full Portable Mortgage Blog Big FHA Mortgage Insurance Reform: The Mortgage Insurance Freedom Act (H.R. 5508) Now for the potentially good news. A significant bill in Congress, the Mortgage Insurance Freedom Act (H.R. 5508), would finally allow FHA mortgage insurance (MIP) to fall off automatically once the borrower reaches 78 percent loan-to-value (LTV). Currently, FHA mortgage insurance remains for the life of the loan unless a borrower puts down 10% or more at closing. If passed, this bill would drastically improve long-term affordability for thousands of Idaho borrowers, particularly first-time homebuyers. This change alone could save FHA borrowers thousands of dollars over the life of the loan. I have included a link where you can send a quick message to your congressional representatives supporting the bill (The full FHA discussion starts at [00:02:35]). Link to Call to Action for HR 5508 Watch This Week's Idaho Housing Update Video For a deeper dive into FIRPTA, the Idaho homeowner's exemption rule, and the FHA mortgage insurance bill, watch the full Idaho housing update 2025 video above. Frequently Asked Questions About the Idaho Housing Market Update 2025 What is FIRPTA and why does it matter in Idaho closings? FIRPTA requires withholding up to 15 percent of a non-permanent resident seller's proceeds until federal taxes are filed. Because this can delay closings and disrupt a seller’s purchase plans, it must be addressed early in the Idaho real estate transaction. Can someone file for the Idaho Homeowner's Exemption with an out-of-state driver's license? No. As of July 1, an active Idaho driver's license is required for approval. Filing with an out-of-state license results in an automatic rejection of the Homeowner's Exemption application by the county assessor’s office. Will 50-year mortgages or portable mortgages become available in Idaho? No. Both concepts conflict with existing federal and investor rules and are not feasible in today's mortgage system. We encourage clients to focus on existing, strong programs designed to enhance affordability. What does the Mortgage Insurance Freedom Act (H.R. 5508) do? The Mortgage Insurance Freedom Act would allow FHA mortgage insurance (MIP) to fall off at 78 percent loan-to-value, mirroring conventional loan rules. This would significantly improve long-term affordability for Idaho borrowers using FHA financing. Ready for Solid Advice on Your Next Idaho Home Loan? If you have questions about buying or refinancing in Idaho, or how these updates affect you or your clients, reach out today. As an experienced Loan Officer in the Treasure Valley, I am happy to walk through your options and run the numbers to find the best strategy for you. Contact Your Local Idaho Mortgage Advisor Today best mortgage lender Boise Boise FHA expert mortgage lender FHA Mortgage Insurance FIRPTA Homeowner Exemption Idaho homebuyers idaho housing and finance idaho housing update meridian fha Mortgage Legislation Mortgage Myths Treasure Valley real estate 1st Choice Mortgage Company, LLC Click to Call or Text: (208) 375-5626 This entry has 0 replies Comments are closed.
Idaho Housing Market Update 2025: FIRPTA, New Homeowner Exemption Rule, and FHA Mortgage Insurance News As fall turns into winter across the Treasure Valley (Boise, Meridian, Nampa, and Caldwell), here is your essential Idaho Housing Market Update 2025. We break down the unexpected FIRPTA withholding surprise, the critical new Idaho Homeowner’s Exemption license rule, and a major legislative update regarding FHA mortgage insurance. As a Licensed Mortgage Advisor for 15+ years, I ensure my clients and referral partners navigate these changes with confidence. Your Idaho housing update 2025 video is posted below for an even deeper explanation. FIRPTA Withholding: The 15 Percent Surprise Idaho Sellers Aren’t Expecting FIRPTA, the Foreign Investment in Real Property Tax Act, is becoming a major issue in Idaho real estate closings. When a non-permanent resident sells a home, the title company is federally required to withhold up to 15 percent of their net proceeds until federal taxes are officially filed. In real life, this has blindsided sellers who depended on all their equity to finance their next purchase. If your buyer or seller is working with a non-permanent resident, ensure FIRPTA questions are part of the conversation early in the transaction. This is a crucial step in maintaining a smooth closing process (The FIRPTA issue is discussed around [00:00:08]). Critical New Idaho Homeowner’s Exemption Rule Beginning July 1, Idaho now requires an Idaho driver's license in order to file for the Homeowner's Exemption. This is a non-negotiable step for new residents. If your clients move here from Oregon, Washington, Utah, or anywhere else in the country, they must update their driver's license *before* their exemption application can be approved by the county. Filing the exemption with an out-of-state license will result in an automatic rejection. To save your clients significant headaches and ensure they receive this valuable tax benefit, advising them to schedule an appointment at the Idaho DMV right after closing is essential (This rule is highlighted around [00:01:09]). 50-Year Mortgages and Portable Mortgages: Why They Won’t Happen Two ideas recently grabbed national attention: the 50-year mortgage and the portable mortgage. While they sound appealing on talk shows as potential fixes for affordability, as a lending professional, I can confirm neither is realistic. Federal rules, investor guidelines, and strict risk management protocols make them basically impossible to implement on a broad scale today (See the video discussion on these myths starting at [00:01:58]). More importantly, they do not help affordability the way people think they do. Your clients are better served by solid, expert advice on real programs that exist today, especially those designed for first-time homebuyers in the Treasure Valley. I have linked separate blog posts below if you want the full explanation on these mortgage myths. Link to Full 50-Year Mortgage Explanation Link to Full Portable Mortgage Blog Big FHA Mortgage Insurance Reform: The Mortgage Insurance Freedom Act (H.R. 5508) Now for the potentially good news. A significant bill in Congress, the Mortgage Insurance Freedom Act (H.R. 5508), would finally allow FHA mortgage insurance (MIP) to fall off automatically once the borrower reaches 78 percent loan-to-value (LTV). Currently, FHA mortgage insurance remains for the life of the loan unless a borrower puts down 10% or more at closing. If passed, this bill would drastically improve long-term affordability for thousands of Idaho borrowers, particularly first-time homebuyers. This change alone could save FHA borrowers thousands of dollars over the life of the loan. I have included a link where you can send a quick message to your congressional representatives supporting the bill (The full FHA discussion starts at [00:02:35]). Link to Call to Action for HR 5508 Watch This Week's Idaho Housing Update Video For a deeper dive into FIRPTA, the Idaho homeowner's exemption rule, and the FHA mortgage insurance bill, watch the full Idaho housing update 2025 video above. Frequently Asked Questions About the Idaho Housing Market Update 2025 What is FIRPTA and why does it matter in Idaho closings? FIRPTA requires withholding up to 15 percent of a non-permanent resident seller's proceeds until federal taxes are filed. Because this can delay closings and disrupt a seller’s purchase plans, it must be addressed early in the Idaho real estate transaction. Can someone file for the Idaho Homeowner's Exemption with an out-of-state driver's license? No. As of July 1, an active Idaho driver's license is required for approval. Filing with an out-of-state license results in an automatic rejection of the Homeowner's Exemption application by the county assessor’s office. Will 50-year mortgages or portable mortgages become available in Idaho? No. Both concepts conflict with existing federal and investor rules and are not feasible in today's mortgage system. We encourage clients to focus on existing, strong programs designed to enhance affordability. What does the Mortgage Insurance Freedom Act (H.R. 5508) do? The Mortgage Insurance Freedom Act would allow FHA mortgage insurance (MIP) to fall off at 78 percent loan-to-value, mirroring conventional loan rules. This would significantly improve long-term affordability for Idaho borrowers using FHA financing. Ready for Solid Advice on Your Next Idaho Home Loan? If you have questions about buying or refinancing in Idaho, or how these updates affect you or your clients, reach out today. As an experienced Loan Officer in the Treasure Valley, I am happy to walk through your options and run the numbers to find the best strategy for you. Contact Your Local Idaho Mortgage Advisor Today
