Who REALLY Pays Closing Costs When Buying a Home in Idaho? Updated August 7, 2026 Who Pays Closing Costs in Idaho? Buyer vs. Seller Costs Explained Who pays closing costs in Idaho? The buyer, the seller, or the lender? The real answer is that all three can potentially play a role. Buyers and sellers normally have their own expenses when an Idaho home changes hands, and depending on the mortgage program and purchase agreement, the seller may also agree to pay some of the buyer’s eligible closing costs. One of the biggest mistakes I see Idaho homebuyers make is focusing entirely on the down payment and mortgage rate while overlooking closing costs, seller credits, discount points, and lender fees. I’m Gerald Robinson, NMLS #4475, President and CEO of 1st Choice Mortgage Company, LLC, Company NMLS #380736. Our company has served Idaho homebuyers for more than 30 years, and I’ve personally spent more than 24 years helping them navigate mortgages. In this guide I’ll explain how closing costs work, who may pay them, what Realtors should consider when structuring an offer, and why borrowers should compare lender fees - not just interest rates. Watch: Who Really Pays Closing Costs When Buying a Home in Idaho? Prefer to watch instead of read? In this short video, I explain the difference between a down payment and closing costs, how seller-paid closing costs work, why Realtors should coordinate with the lender before writing an offer, and why lender fees matter when comparing mortgage quotes. <br /> Quick takeaway: Your down payment and closing costs are different, seller-paid closing costs may be negotiable, and you should compare what a lender is charging you - not just the advertised mortgage rate. What Are Closing Costs? Closing costs are the expenses associated with obtaining your mortgage and completing the purchase of a home. Depending on the transaction, Idaho homebuyer closing costs may include: Appraisal fees Credit-related charges Title services Escrow or settlement services Recording fees Lender charges Homeowners insurance Prepaid property taxes Initial escrow account deposits Discount points, if the borrower chooses or is required to pay them The actual amount varies based on the purchase price, loan amount, mortgage program, property taxes, insurance, title and escrow charges, lender pricing, and the individual transaction. That’s why I don’t like telling buyers that closing costs will always equal a particular percentage of the home’s price. A percentage can be useful for rough planning, but your actual Loan Estimate is much more important. Down Payment and Closing Costs Are Not the Same Thing This is one of the most important concepts for homebuyers to understand. Your down payment is the portion of the home’s purchase price you’re paying rather than financing. Your closing costs are the additional expenses associated with getting the mortgage and completing the purchase. For example, a buyer using FHA financing may have a required down payment, but that doesn’t mean the down payment represents all of the cash the buyer may need to close. Likewise, eligible borrowers using VA or USDA financing may potentially purchase with no required down payment, but zero down does not automatically mean zero closing costs. For more information about zero-down mortgage options, see: Idaho VA Home Loans USDA Rural Development Home Loans in Idaho Who Normally Pays Closing Costs in Idaho? In most Idaho real estate transactions, both the buyer and seller have expenses associated with closing. Closing Costs an Idaho Buyer May Pay A homebuyer may be responsible for mortgage-related costs, appraisal charges, certain title and escrow costs, recording fees, prepaid homeowners insurance, property-tax adjustments, and funds needed to establish an escrow account. The exact charges depend on the mortgage program and individual transaction. Closing Costs an Idaho Seller May Pay A seller generally has costs associated with selling and transferring the property, along with any expenses or credits negotiated in the purchase agreement. But this is where closing-cost strategy becomes especially important: The seller may also agree to pay some of the buyer’s eligible closing costs. Can the Seller Pay the Buyer’s Closing Costs in Idaho? Yes. Seller-paid buyer closing costs can be negotiated as part of an Idaho purchase agreement, subject to the requirements of the buyer’s mortgage program. Instead of negotiating only on the sales price, a buyer may request that the seller contribute a specific amount toward eligible closing costs. That can potentially reduce the amount of cash the buyer must bring to closing. But here’s the important part: The seller is not automatically required to pay the buyer’s closing costs. There’s no mortgage rule that says, “Congratulations on selling your house. Here’s the buyer’s bill.” The contribution has to be negotiated. Whether requesting seller-paid costs makes sense can depend on: Current Idaho housing-market conditions Competition for the home The purchase price The seller’s motivation The buyer’s available funds The mortgage program Program limits on interested-party contributions or concessions The property’s appraised value Realtors: Talk to the Buyer’s Lender Before Writing the Offer This is one of my biggest recommendations for Idaho Realtors. If your buyer needs help with closing costs, call the lender before deciding how much seller contribution to request. The mortgage professional can estimate the buyer’s actual costs and determine how the particular loan program treats seller contributions. There is little benefit in requesting $15,000 toward closing costs if the buyer only has $8,000 of eligible expenses. Instead, let’s determine the actual numbers first and structure the offer around the buyer’s financing needs while also considering how competitive the offer needs to be. The Realtor and lender should be working together on this - not discovering the problem three days before closing. How Much Can a Seller Contribute Toward Closing Costs? There is no single answer that applies to every mortgage. Conventional, FHA, VA and USDA financing each have rules governing seller-paid costs, interested-party contributions, and concessions. The permitted amount may also depend on factors such as occupancy, loan-to-value ratio, down payment, and the type of cost being paid. This is why borrowers and Realtors should be cautious with blanket statements such as, “The seller can always pay X percent.” The lender should review the specific loan program and transaction before the purchase agreement is finalized. VA Closing Costs Have Special Rules VA loans are a good example of why mortgage-program details matter. VA distinguishes between certain allowable borrower-paid costs, fees that may be subject to VA’s one-percent rule, and seller concessions. Another common myth is that a VA buyer pays no closing costs or that the seller is required to pay all of the veteran’s closing costs. Neither statement is universally correct. I’ve created a separate in-depth guide specifically for veterans, active-duty military members, and Realtors: VA Allowable Closing Costs: What Veterans Can and Can’t Pay Price Reduction or Seller-Paid Closing Costs: Which Is Better? Suppose a seller is willing to negotiate $10,000. Many buyers instinctively want that $10,000 removed from the purchase price. Sometimes that’s the right choice. But depending on the buyer’s situation, applying some or all of that negotiated amount toward eligible closing costs may provide a greater immediate benefit. A price reduction affects the amount being financed and may lower the monthly payment somewhat. A seller-paid closing-cost contribution, on the other hand, could potentially reduce the buyer’s upfront cash requirement dollar-for-dollar for eligible expenses, up to applicable program and transaction limits. For buyers who have sufficient income but want to preserve savings after purchasing the home, that can be extremely valuable. Don’t assume one option is better. Ask your lender to run the numbers both ways. Lender Fees Can Increase Your Idaho Closing Costs This is one of the most overlooked parts of mortgage shopping. Not every mortgage company charges the same lender fees. Most borrowers naturally ask: “What’s your interest rate?” That’s an important question. But I think every borrower should also ask: “What are you charging me to get that rate?” Two mortgage companies can quote similar interest rates while offering very different total financing costs. Depending on the transaction, lender-related costs could include origination charges, discount points, underwriting, processing, application, administrative, or other lender fees. A great-looking interest rate isn’t nearly as exciting if it comes with a wheelbarrow full of additional fees. 1st Choice Mortgage Does Not Charge Junk Fees As an Idaho mortgage broker, this is one area where we intentionally do things differently at 1st Choice Mortgage Company. We don’t charge unnecessary junk fees. We do not believe in taking an attractive mortgage rate and then loading the transaction with unnecessary application, processing, or miscellaneous lender charges simply because we can. Keeping unnecessary lender fees out of the transaction is one way we work to reduce our borrowers’ overall closing costs. And you don’t have to take my word for it. Compare the Loan Estimates. How to Compare Mortgage Loan Estimates The Consumer Financial Protection Bureau designed the Loan Estimate to help borrowers understand and compare mortgage offers. If you’re shopping lenders, try to compare equivalent loan programs and look at the complete financing picture - not just one advertised number. 1. Compare the Interest Rate The mortgage rate is important, but it is only one component of the cost of borrowing. 2. Look for Discount Points Determine whether one lender is charging discount points or other upfront costs to provide the quoted rate. A lower interest rate isn’t automatically a better financial deal if you’re paying substantially more upfront to obtain it. 3. Review Origination Charges and Lender Fees Review the lender-related charges on the Loan Estimate. If you do not understand a fee, ask the lender exactly what it is and why you’re being charged it. 4. Review the APR The Annual Percentage Rate, or APR, can provide additional information about certain costs associated with financing. APR shouldn’t be your only comparison, but it can help when reviewing similar loan options. 5. Compare Estimated Cash to Close Ultimately, you need to understand approximately how much money you’ll need to complete the transaction. 6. Make Sure You’re Comparing Equivalent Loans A Conventional loan with discount points is not necessarily an apples-to-apples comparison with a different loan program quoted without points. Make sure the loan type, term, rate structure, and assumptions are reasonably comparable. What Is a Mortgage “Junk Fee”? The phrase “junk fee” isn’t a formal mortgage-regulation category. I use it to describe unnecessary lender-added charges that can increase the borrower’s cost without providing meaningful additional value. Not every lender fee is a junk fee. There are legitimate costs involved in originating and closing a mortgage. The important thing is for borrowers to understand what they’re paying, why they’re paying it, and whether another lender structures the same type of financing differently. Can Idaho Housing Help With Closing Costs? Eligible Idaho homebuyers may have access to Idaho Housing programs that can help with down payment and/or closing-cost needs. Program availability, eligibility requirements, income limits, property requirements, and financing guidelines apply. Learn more about current Idaho Housing options here: Idaho Housing Home Loans and Down Payment Assistance Can You Roll Closing Costs Into a Mortgage? On a typical home purchase, borrowers generally cannot simply increase the loan amount by the full amount of their closing costs without regard to the program’s maximum financing limits and the property’s value. However, there may be other ways to reduce the buyer’s cash requirement, including: Negotiated seller contributions Eligible down-payment or closing-cost assistance Permitted lender credits Appropriate transaction structuring within mortgage-program guidelines Refinance transactions are different and may allow certain costs to be financed when permitted by the loan program and available equity. Who Pays Closing Costs in Boise, Meridian, Nampa and the Treasure Valley? The same basic principles apply throughout Boise, Meridian, Nampa, Caldwell, Eagle, Kuna, Star, Middleton, Mountain Home, and communities throughout Idaho. The mortgage program, purchase agreement, lender charges, title and escrow services, insurance costs, property taxes, and negotiated seller contributions ultimately determine what each party pays. This is one reason local experience matters. Idaho transactions have their own customary practices, but mortgage-program requirements still control what is permitted for the financing being used. Three Things Idaho Homebuyers Should Remember About Closing Costs If you remember nothing else from this guide, remember these three things: Your down payment and closing costs are two different things. Seller-paid buyer closing costs may be negotiable, subject to the mortgage program and transaction. Compare lender fees and total costs - not just mortgage rates. The lowest advertised interest rate isn’t automatically the least expensive mortgage. Look at the complete financing package. Already Have a Loan Estimate? Get a Free Second Look If you already have a Loan Estimate from another mortgage company, send it to us. Our 2nd Look Mortgage Review is free, there is no obligation, and it normally takes less than 10 minutes. We’ll help you compare: Mortgage rate APR Discount points Lender charges Loan structure Estimated cash to close Sometimes the original mortgage offer is excellent. Sometimes we identify an opportunity to reduce the borrower’s rate, fees, or overall financing costs. Either way, you’ll have more information before making one of the largest financial decisions of your life. Call 1st Choice Mortgage Company at (208) 375-5626 or contact us today. Frequently Asked Questions About Idaho Closing Costs Who pays closing costs when buying a home in Idaho? Both buyers and sellers generally have expenses associated with an Idaho real estate transaction. Buyers commonly have mortgage-related closing costs and prepaid expenses, while sellers have costs associated with selling and transferring the property. A seller may also agree to contribute toward eligible buyer closing costs. Does the seller have to pay the buyer’s closing costs in Idaho? No. Sellers are not automatically required to pay a buyer’s closing costs. A seller contribution is generally negotiated as part of the purchase agreement and must comply with the buyer’s mortgage-program requirements. Can an Idaho homebuyer ask the seller to pay closing costs? Yes. An Idaho homebuyer can negotiate for the seller to contribute toward eligible closing costs. The amount permitted depends on the mortgage program and specific transaction. Are closing costs and the down payment the same thing? No. A down payment is the buyer’s contribution toward the home’s purchase price. Closing costs are expenses associated with obtaining the mortgage and completing the purchase. Are seller concessions the same as seller-paid closing costs? Not necessarily. Mortgage programs may define and treat seller-paid closing costs, interested-party contributions, and concessions differently. VA financing, for example, has specific rules regarding seller concessions. Is a lower interest rate always the cheapest mortgage? No. A lower mortgage rate may involve discount points or other upfront charges. Borrowers should compare the interest rate, APR, discount points, lender charges, loan terms, and estimated cash to close. Does 1st Choice Mortgage charge junk fees? 1st Choice Mortgage Company does not charge unnecessary application, processing, or miscellaneous lender junk fees. Borrowers should always review the Loan Estimate to understand the costs associated with a mortgage offer. Should my Realtor talk to my lender before requesting seller-paid closing costs? Yes. Coordinating with the lender before writing the purchase offer can help determine the buyer’s estimated closing costs and the amount the particular mortgage program allows the seller to contribute. About the Author Gerald Robinson (NMLS #4475) is President and CEO of 1st Choice Mortgage Company, LLC (Company NMLS #380736), a licensed Idaho and Oregon mortgage broker serving the Treasure Valley community for more than 30 years, since 1992. Gerald has over 24 years of localized mortgage lending experience and has helped thousands of borrowers navigate the home-financing process. He specializes in Idaho VA loans, FHA programs, Conventional financing, USDA Rural Development loans, and Idaho Housing down payment assistance. Gerald also provides mortgage and financing education for real estate professionals as an Idaho Real Estate Commission-certified continuing education instructor, helping Realtors better understand mortgage guidelines, loan programs, appraisal requirements, closing costs, and financing strategies that can affect their clients’ transactions. As an experienced Idaho mortgage broker, Gerald’s goal is to help homebuyers and real estate professionals understand their options, compare financing accurately, and make informed decisions about homeownership. Sources and Additional Resources Consumer Financial Protection Bureau - Loan Estimate Consumer Financial Protection Bureau - Closing Disclosure U.S. Department of Veterans Affairs - VA Home Loans USDA Rural Development - Single Family Housing Programs Idaho Housing and Finance Association - Homebuyer Programs 1st Choice Mortgage Company, LLC | Company NMLS #380736 3023 E. Copper Point Dr., Suite 101, Meridian, ID 83642 (208) 375-5626 Licensed in Idaho and Oregon. Equal Housing Opportunity Lender. 1st Choice Mortgage Company is not affiliated with VA, FHA, HUD, Fannie Mae, or Freddie Mac. Loan programs, guidelines, rates, fees, and costs are subject to change. Information on this page is provided for educational purposes only and is not a commitment to lend. Individual circumstances vary. buyer closing costs Idaho closing costs Boise Idaho closing costs Meridian Idaho closing costs Nampa Idaho Idaho closing costs Idaho home buyer Idaho mortgage broker Loan Estimate mortgage lender fees seller closing costs Idaho seller concessions Idaho seller paid closing costs who pays closing costs in Idaho 1st Choice Mortgage Company, LLC Click to Call or Text: (208) 375-5626 This entry has 0 replies Comments are closed.
Updated August 7, 2026 Who Pays Closing Costs in Idaho? Buyer vs. Seller Costs Explained Who pays closing costs in Idaho? The buyer, the seller, or the lender? The real answer is that all three can potentially play a role. Buyers and sellers normally have their own expenses when an Idaho home changes hands, and depending on the mortgage program and purchase agreement, the seller may also agree to pay some of the buyer’s eligible closing costs. One of the biggest mistakes I see Idaho homebuyers make is focusing entirely on the down payment and mortgage rate while overlooking closing costs, seller credits, discount points, and lender fees. I’m Gerald Robinson, NMLS #4475, President and CEO of 1st Choice Mortgage Company, LLC, Company NMLS #380736. Our company has served Idaho homebuyers for more than 30 years, and I’ve personally spent more than 24 years helping them navigate mortgages. In this guide I’ll explain how closing costs work, who may pay them, what Realtors should consider when structuring an offer, and why borrowers should compare lender fees - not just interest rates. Watch: Who Really Pays Closing Costs When Buying a Home in Idaho? Prefer to watch instead of read? In this short video, I explain the difference between a down payment and closing costs, how seller-paid closing costs work, why Realtors should coordinate with the lender before writing an offer, and why lender fees matter when comparing mortgage quotes. <br /> Quick takeaway: Your down payment and closing costs are different, seller-paid closing costs may be negotiable, and you should compare what a lender is charging you - not just the advertised mortgage rate. What Are Closing Costs? Closing costs are the expenses associated with obtaining your mortgage and completing the purchase of a home. Depending on the transaction, Idaho homebuyer closing costs may include: Appraisal fees Credit-related charges Title services Escrow or settlement services Recording fees Lender charges Homeowners insurance Prepaid property taxes Initial escrow account deposits Discount points, if the borrower chooses or is required to pay them The actual amount varies based on the purchase price, loan amount, mortgage program, property taxes, insurance, title and escrow charges, lender pricing, and the individual transaction. That’s why I don’t like telling buyers that closing costs will always equal a particular percentage of the home’s price. A percentage can be useful for rough planning, but your actual Loan Estimate is much more important. Down Payment and Closing Costs Are Not the Same Thing This is one of the most important concepts for homebuyers to understand. Your down payment is the portion of the home’s purchase price you’re paying rather than financing. Your closing costs are the additional expenses associated with getting the mortgage and completing the purchase. For example, a buyer using FHA financing may have a required down payment, but that doesn’t mean the down payment represents all of the cash the buyer may need to close. Likewise, eligible borrowers using VA or USDA financing may potentially purchase with no required down payment, but zero down does not automatically mean zero closing costs. For more information about zero-down mortgage options, see: Idaho VA Home Loans USDA Rural Development Home Loans in Idaho Who Normally Pays Closing Costs in Idaho? In most Idaho real estate transactions, both the buyer and seller have expenses associated with closing. Closing Costs an Idaho Buyer May Pay A homebuyer may be responsible for mortgage-related costs, appraisal charges, certain title and escrow costs, recording fees, prepaid homeowners insurance, property-tax adjustments, and funds needed to establish an escrow account. The exact charges depend on the mortgage program and individual transaction. Closing Costs an Idaho Seller May Pay A seller generally has costs associated with selling and transferring the property, along with any expenses or credits negotiated in the purchase agreement. But this is where closing-cost strategy becomes especially important: The seller may also agree to pay some of the buyer’s eligible closing costs. Can the Seller Pay the Buyer’s Closing Costs in Idaho? Yes. Seller-paid buyer closing costs can be negotiated as part of an Idaho purchase agreement, subject to the requirements of the buyer’s mortgage program. Instead of negotiating only on the sales price, a buyer may request that the seller contribute a specific amount toward eligible closing costs. That can potentially reduce the amount of cash the buyer must bring to closing. But here’s the important part: The seller is not automatically required to pay the buyer’s closing costs. There’s no mortgage rule that says, “Congratulations on selling your house. Here’s the buyer’s bill.” The contribution has to be negotiated. Whether requesting seller-paid costs makes sense can depend on: Current Idaho housing-market conditions Competition for the home The purchase price The seller’s motivation The buyer’s available funds The mortgage program Program limits on interested-party contributions or concessions The property’s appraised value Realtors: Talk to the Buyer’s Lender Before Writing the Offer This is one of my biggest recommendations for Idaho Realtors. If your buyer needs help with closing costs, call the lender before deciding how much seller contribution to request. The mortgage professional can estimate the buyer’s actual costs and determine how the particular loan program treats seller contributions. There is little benefit in requesting $15,000 toward closing costs if the buyer only has $8,000 of eligible expenses. Instead, let’s determine the actual numbers first and structure the offer around the buyer’s financing needs while also considering how competitive the offer needs to be. The Realtor and lender should be working together on this - not discovering the problem three days before closing. How Much Can a Seller Contribute Toward Closing Costs? There is no single answer that applies to every mortgage. Conventional, FHA, VA and USDA financing each have rules governing seller-paid costs, interested-party contributions, and concessions. The permitted amount may also depend on factors such as occupancy, loan-to-value ratio, down payment, and the type of cost being paid. This is why borrowers and Realtors should be cautious with blanket statements such as, “The seller can always pay X percent.” The lender should review the specific loan program and transaction before the purchase agreement is finalized. VA Closing Costs Have Special Rules VA loans are a good example of why mortgage-program details matter. VA distinguishes between certain allowable borrower-paid costs, fees that may be subject to VA’s one-percent rule, and seller concessions. Another common myth is that a VA buyer pays no closing costs or that the seller is required to pay all of the veteran’s closing costs. Neither statement is universally correct. I’ve created a separate in-depth guide specifically for veterans, active-duty military members, and Realtors: VA Allowable Closing Costs: What Veterans Can and Can’t Pay Price Reduction or Seller-Paid Closing Costs: Which Is Better? Suppose a seller is willing to negotiate $10,000. Many buyers instinctively want that $10,000 removed from the purchase price. Sometimes that’s the right choice. But depending on the buyer’s situation, applying some or all of that negotiated amount toward eligible closing costs may provide a greater immediate benefit. A price reduction affects the amount being financed and may lower the monthly payment somewhat. A seller-paid closing-cost contribution, on the other hand, could potentially reduce the buyer’s upfront cash requirement dollar-for-dollar for eligible expenses, up to applicable program and transaction limits. For buyers who have sufficient income but want to preserve savings after purchasing the home, that can be extremely valuable. Don’t assume one option is better. Ask your lender to run the numbers both ways. Lender Fees Can Increase Your Idaho Closing Costs This is one of the most overlooked parts of mortgage shopping. Not every mortgage company charges the same lender fees. Most borrowers naturally ask: “What’s your interest rate?” That’s an important question. But I think every borrower should also ask: “What are you charging me to get that rate?” Two mortgage companies can quote similar interest rates while offering very different total financing costs. Depending on the transaction, lender-related costs could include origination charges, discount points, underwriting, processing, application, administrative, or other lender fees. A great-looking interest rate isn’t nearly as exciting if it comes with a wheelbarrow full of additional fees. 1st Choice Mortgage Does Not Charge Junk Fees As an Idaho mortgage broker, this is one area where we intentionally do things differently at 1st Choice Mortgage Company. We don’t charge unnecessary junk fees. We do not believe in taking an attractive mortgage rate and then loading the transaction with unnecessary application, processing, or miscellaneous lender charges simply because we can. Keeping unnecessary lender fees out of the transaction is one way we work to reduce our borrowers’ overall closing costs. And you don’t have to take my word for it. Compare the Loan Estimates. How to Compare Mortgage Loan Estimates The Consumer Financial Protection Bureau designed the Loan Estimate to help borrowers understand and compare mortgage offers. If you’re shopping lenders, try to compare equivalent loan programs and look at the complete financing picture - not just one advertised number. 1. Compare the Interest Rate The mortgage rate is important, but it is only one component of the cost of borrowing. 2. Look for Discount Points Determine whether one lender is charging discount points or other upfront costs to provide the quoted rate. A lower interest rate isn’t automatically a better financial deal if you’re paying substantially more upfront to obtain it. 3. Review Origination Charges and Lender Fees Review the lender-related charges on the Loan Estimate. If you do not understand a fee, ask the lender exactly what it is and why you’re being charged it. 4. Review the APR The Annual Percentage Rate, or APR, can provide additional information about certain costs associated with financing. APR shouldn’t be your only comparison, but it can help when reviewing similar loan options. 5. Compare Estimated Cash to Close Ultimately, you need to understand approximately how much money you’ll need to complete the transaction. 6. Make Sure You’re Comparing Equivalent Loans A Conventional loan with discount points is not necessarily an apples-to-apples comparison with a different loan program quoted without points. Make sure the loan type, term, rate structure, and assumptions are reasonably comparable. What Is a Mortgage “Junk Fee”? The phrase “junk fee” isn’t a formal mortgage-regulation category. I use it to describe unnecessary lender-added charges that can increase the borrower’s cost without providing meaningful additional value. Not every lender fee is a junk fee. There are legitimate costs involved in originating and closing a mortgage. The important thing is for borrowers to understand what they’re paying, why they’re paying it, and whether another lender structures the same type of financing differently. Can Idaho Housing Help With Closing Costs? Eligible Idaho homebuyers may have access to Idaho Housing programs that can help with down payment and/or closing-cost needs. Program availability, eligibility requirements, income limits, property requirements, and financing guidelines apply. Learn more about current Idaho Housing options here: Idaho Housing Home Loans and Down Payment Assistance Can You Roll Closing Costs Into a Mortgage? On a typical home purchase, borrowers generally cannot simply increase the loan amount by the full amount of their closing costs without regard to the program’s maximum financing limits and the property’s value. However, there may be other ways to reduce the buyer’s cash requirement, including: Negotiated seller contributions Eligible down-payment or closing-cost assistance Permitted lender credits Appropriate transaction structuring within mortgage-program guidelines Refinance transactions are different and may allow certain costs to be financed when permitted by the loan program and available equity. Who Pays Closing Costs in Boise, Meridian, Nampa and the Treasure Valley? The same basic principles apply throughout Boise, Meridian, Nampa, Caldwell, Eagle, Kuna, Star, Middleton, Mountain Home, and communities throughout Idaho. The mortgage program, purchase agreement, lender charges, title and escrow services, insurance costs, property taxes, and negotiated seller contributions ultimately determine what each party pays. This is one reason local experience matters. Idaho transactions have their own customary practices, but mortgage-program requirements still control what is permitted for the financing being used. Three Things Idaho Homebuyers Should Remember About Closing Costs If you remember nothing else from this guide, remember these three things: Your down payment and closing costs are two different things. Seller-paid buyer closing costs may be negotiable, subject to the mortgage program and transaction. Compare lender fees and total costs - not just mortgage rates. The lowest advertised interest rate isn’t automatically the least expensive mortgage. Look at the complete financing package. Already Have a Loan Estimate? Get a Free Second Look If you already have a Loan Estimate from another mortgage company, send it to us. Our 2nd Look Mortgage Review is free, there is no obligation, and it normally takes less than 10 minutes. We’ll help you compare: Mortgage rate APR Discount points Lender charges Loan structure Estimated cash to close Sometimes the original mortgage offer is excellent. Sometimes we identify an opportunity to reduce the borrower’s rate, fees, or overall financing costs. Either way, you’ll have more information before making one of the largest financial decisions of your life. Call 1st Choice Mortgage Company at (208) 375-5626 or contact us today. Frequently Asked Questions About Idaho Closing Costs Who pays closing costs when buying a home in Idaho? Both buyers and sellers generally have expenses associated with an Idaho real estate transaction. Buyers commonly have mortgage-related closing costs and prepaid expenses, while sellers have costs associated with selling and transferring the property. A seller may also agree to contribute toward eligible buyer closing costs. Does the seller have to pay the buyer’s closing costs in Idaho? No. Sellers are not automatically required to pay a buyer’s closing costs. A seller contribution is generally negotiated as part of the purchase agreement and must comply with the buyer’s mortgage-program requirements. Can an Idaho homebuyer ask the seller to pay closing costs? Yes. An Idaho homebuyer can negotiate for the seller to contribute toward eligible closing costs. The amount permitted depends on the mortgage program and specific transaction. Are closing costs and the down payment the same thing? No. A down payment is the buyer’s contribution toward the home’s purchase price. Closing costs are expenses associated with obtaining the mortgage and completing the purchase. Are seller concessions the same as seller-paid closing costs? Not necessarily. Mortgage programs may define and treat seller-paid closing costs, interested-party contributions, and concessions differently. VA financing, for example, has specific rules regarding seller concessions. Is a lower interest rate always the cheapest mortgage? No. A lower mortgage rate may involve discount points or other upfront charges. Borrowers should compare the interest rate, APR, discount points, lender charges, loan terms, and estimated cash to close. Does 1st Choice Mortgage charge junk fees? 1st Choice Mortgage Company does not charge unnecessary application, processing, or miscellaneous lender junk fees. Borrowers should always review the Loan Estimate to understand the costs associated with a mortgage offer. Should my Realtor talk to my lender before requesting seller-paid closing costs? Yes. Coordinating with the lender before writing the purchase offer can help determine the buyer’s estimated closing costs and the amount the particular mortgage program allows the seller to contribute. About the Author Gerald Robinson (NMLS #4475) is President and CEO of 1st Choice Mortgage Company, LLC (Company NMLS #380736), a licensed Idaho and Oregon mortgage broker serving the Treasure Valley community for more than 30 years, since 1992. Gerald has over 24 years of localized mortgage lending experience and has helped thousands of borrowers navigate the home-financing process. He specializes in Idaho VA loans, FHA programs, Conventional financing, USDA Rural Development loans, and Idaho Housing down payment assistance. Gerald also provides mortgage and financing education for real estate professionals as an Idaho Real Estate Commission-certified continuing education instructor, helping Realtors better understand mortgage guidelines, loan programs, appraisal requirements, closing costs, and financing strategies that can affect their clients’ transactions. As an experienced Idaho mortgage broker, Gerald’s goal is to help homebuyers and real estate professionals understand their options, compare financing accurately, and make informed decisions about homeownership. Sources and Additional Resources Consumer Financial Protection Bureau - Loan Estimate Consumer Financial Protection Bureau - Closing Disclosure U.S. Department of Veterans Affairs - VA Home Loans USDA Rural Development - Single Family Housing Programs Idaho Housing and Finance Association - Homebuyer Programs 1st Choice Mortgage Company, LLC | Company NMLS #380736 3023 E. Copper Point Dr., Suite 101, Meridian, ID 83642 (208) 375-5626 Licensed in Idaho and Oregon. Equal Housing Opportunity Lender. 1st Choice Mortgage Company is not affiliated with VA, FHA, HUD, Fannie Mae, or Freddie Mac. Loan programs, guidelines, rates, fees, and costs are subject to change. Information on this page is provided for educational purposes only and is not a commitment to lend. Individual circumstances vary.
