By A. Michael Morrison
CEO & President,
The Bank of Commerce
As the CEO of The Bank of Commerce here in Idaho Falls, I understand that building or purchasing a home is a significant milestone, especially in eastern Idaho's evolving real estate landscape. In 2025, prospective homeowners must navigate various factors, from market trends to financing options, to make informed decisions. This article delves into key considerations, emphasizing lending options for lots, mortgages and construction loans while highlighting the Bank of Commerce's commitment to local decision-making and unparalleled service.
Eastern Idaho's Real Estate Market in 2025
Eastern Idaho's housing market has experienced notable shifts in recent years. In Idaho Falls, the median listing home price in February 2025 was approximately $399,900, reflecting a slight decrease of 1.6% year-over-year. The median listing price per square foot stood at $168, with homes typically remaining on the market for around 51 days. Realtor
Statewide, Idaho's average home value reached $456,464, marking a 2.8% increase over the past year. These figures suggest a moderately appreciating market, offering both opportunities and challenges for buyers. Zillow
Lending Options: Lots, Mortgages, and Construction Loans
When considering building or purchasing a home in Eastern Idaho, understanding the available financing options is crucial:
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Lot and Land Loans: Acquiring land is the foundational step for those aiming to build. Unless you’re paying cash for the property, a lender may require a down payment of 20% or more, interest rates slightly higher than conforming home mortgages, and that the lot be developed with utilities such as power to the lot. There may be even more requirements for raw land purchases. This is where an experienced lender on your side can help you navigate your options, which can be the difference between closing the deal or losing it.
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Construction Loans: Tailored for individuals planning to build, construction loans provide funds to cover building expenses, not the land itself. Features such as interest-only payments during construction and the option to convert the loan into a permanent mortgage upon completion are common. Among other considerations such as doing your due diligence on the contractor you select, make sure and check the number of draws your bank will allow without additional fees as well as the timeframes your lender requires for the structure to be built to ensure the loan meets your needs.
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Traditional Mortgages: For those purchasing existing homes, conventional and FHA mortgages remain the primary financing methods. With interest rates remaining somewhat elevated from what we’ve seen in recent years, securing favorable mortgage terms is essential. Often, we just look at the advertised rate without considering all the costs and the service being offered. I’d encourage prospective buyers to explore various lenders to find competitive rates and terms that align with their financial goals.
The Bank of Commerce: Your Trusted Partner in Real Estate Financing
Many in our community may not be aware that The Bank of Commerce offers a comprehensive suite of real estate loan products. Our commitment to elevated service ensures that loan approvals and terms are tailored to the unique needs of Eastern Idaho residents. This localized approach allows for faster approvals and more happy customers.
Our construction loan offerings are designed to simplify the home-building process. We provide interest-only payments during the construction phase and the convenience of rolling the loan into a permanent mortgage upon completion, saving both time and money on closing costs. Our expertise in construction lending aims to streamline your custom home-building experience.
At The Bank of Commerce, we pride ourselves on delivering unmatched service. Our team of experienced lenders possesses an in-depth understanding of the local real estate market, ensuring that you receive guidance tailored to your specific circumstances. Whether you're purchasing a lot, building a new home, or buying an existing property, our flexible programs and competitive rates are designed to meet your needs.
Conclusion
Building or buying a home in Eastern Idaho in 2025 requires careful consideration of market trends and financing options. With a moderately appreciating housing market and projected increases in rental costs, homeownership presents a viable and potentially advantageous investment. The Bank of Commerce stands ready to assist you through every step of your real estate journey, offering local expertise, flexible loan options, and a commitment to unparalleled service. To contact our experienced real estate lending team and learn your best options, call (208) 525-9115.