Lakefront Living in Coeur d’Alene, ID: Mortgage Considerations for Waterfront Properties

Published:
November 29, 2024
Last updated:
November 29, 2024
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Like other parts of Idaho, the city of Coeur d’Alene, Idaho has increased in popularity over the past ten years or so, attracting residents from other parts of the U.S.

It’s easy to understand why. Coeur d’Alene is located in Northern Idaho, an area known for its wide-open spaces and abundant natural beauty.

The real estate market in Coeur d’Alene can be competitive at times, especially when inventory levels run low. Because of this, home buyers can benefit from having their financing for waterfront properties lined up ahead of time.

Summary: This guide explains some of the most common mortgage loan options available to home buyers who are seeking Lakefront Living in Coeur d’Alene, ID.

Overview of Coeur d’Alene and Its Housing Market

If you’re planning to move to Coeur d’Alene from elsewhere in Idaho or out of state, you’ll benefit from a brief introduction. Here’s what you should know about this Idaho city.

Coeur d’Alene is located in the northern Idaho Panhandle, about 30 miles east of Spokane, Washington. The city is situated on the shores of Coeur d’Alene Lake. In addition to being a popular recreation spot, the lake has a strong influence on the local real estate market.

You’ve probably heard the phrase “an outdoor lover’s paradise.” If you do a little research and look at photos of Coeur d’Alene, you’ll realize this is an appropriate and accurate label for this Northern Idaho city.

As for the Idaho waterfront real estate market, Coeur d’Alene offers a variety of housing options, ranging from cozy cottages to luxurious waterfront estates. There are homes to suit various budgets and preferences.

As of late 2024, the median home price in Coeur d’Alene, Idaho was around $550,000. But some of the luxurious lakefront properties have price tags that rise well into the multimillion-dollar range.

Mortgage Options and Financing Considerations

Higher-end waterfront properties in Coeur d’Alene often require specialized mortgage loans. So let’s shift gears now and talk about financing.

When it comes to size, most mortgage loans fall into one of two categories:

  • Conforming: A conforming mortgage is a loan that meets (or conforms to) specific size limits set by the federal government and used by agencies like Fannie Mae and Freddie Mac. Lenders consider conforming loans to be less risky, since they can be sold into the secondary mortgage market.  Most home buyers across Idaho use conforming mortgages.
  • Jumbo: In contrast, a jumbo home loan is a loan that’s too large to be considered conforming. It exceeds the county-specific loan limits set by the government and therefore cannot be sold to Freddie Mac or Fannie Mae. Home buyers purchasing a more expensive waterfront property in Coeur d’Alene often rely on jumbo financing.

Because of their larger size and higher risk level, jumbo loans for waterfront homes typically require higher credit score scores and larger down payments. Smaller conforming loans, on the other hand, can offer more flexible criteria and smaller down payments.

Conventional vs. Government-Backed Loans

In addition to the size considerations mentioned above, home buyers in Coeur d’Alene can also choose between a conventional or a government-backed mortgage loan.

  • Conventional loan: A mortgage not insured or guaranteed by a government agency. They typically require higher credit scores compared to government-backed loans.
  • Government-backed loan: A mortgage insured or guaranteed by a government agency, such as the FHA, VA, or USDA. These loans often have lower credit and down payment requirements, making them more accessible to borrowers with limited resources.

On the government side, FHA loans have specific size limits you should know about. FHA loans come with government-provided insurance, so the government limits the amount that people can borrow. They use median home prices to set these limits.

In Coeur d’Alene and the rest of Kootenai County, the current (2024) FHA loan limit for a single-family home is $572,700, which is close to the median home value. That limit might go up in 2025, but probably not by much.

So, depending on your budget and down payment capacity, an FHA loan might not be sufficient to cover the purchase of a waterfront/lakefront home in Coeur d’Alene.

VA loans, on the other hand, do not have an official limit. But they are limited to people who are currently serving in the military or have served in the past.

For these reasons, most borrowers who purchase a waterfront property in Coeur d’Alene rely on conventional mortgage financing in general—and jumbo loans in particular.

Tips for Buying Lakefront Homes in Coeur d’Alene

Home buyers purchasing lakefront properties often have to perform additional due diligence, compared to someone buying within a traditional subdivision.

Here are some important topics to research and evaluate before buying waterfront property on Lake Coeur d’Alene:

  • Zoning: Familiarize yourself with local zoning laws to ensure your intended use of the property is permitted (e.g., building a dock, installing a boat lift).
  • Property taxes: Lakefront properties often have higher property taxes due to their premium location and higher assessed values.
  • Shoreline: Inspect the shoreline associated with the property. Check for erosion, water access, and maintenance requirements.
  • Water rights: Confirm whether the property includes rights to the water and if there are any usage restrictions.
  • Specialists: Work with real estate agents and inspectors experienced in waterfront properties in Coeur d’Alene.
  • Flood risk: Look into flood zones and consider purchasing flood insurance.
  • Access: Make sure the property is accessible in all seasons, especially during the winter months when heavy snow is common.
  • Views: Ensure the property offers the privacy and views you desire without future developments obstructing them.
  • HOA: Some lakefront areas in Coeur d’Alene have homeowners’ associations with specific regulations.

FAQs About the Coeur d’Alene Housing Market

  • How long does it take for homes to sell in Coeur d’Alene?

On average, homes in Coeur d’Alene sell in around 52 days.

  • Is the Coeur d’Alene housing market competitive?

The market is somewhat competitive, with homes receiving 3 offers on average.

  • What is the median sale price per square foot in Coeur d’Alene?

The median sale price per square foot is $322, up 11.8% since last year.

  • Are there any popular neighborhoods in Coeur d’Alene?

Some popular neighborhoods include Green Acres, Foothills, Northwood, Orchard Prairie, and Riverton.

  • What is the sale-to-list price ratio in Coeur d’Alene?

Homes typically sell for around 97.9% of the list price.

  • Where are people moving to and from Coeur d’Alene?

Many homebuyers are moving to Coeur d’Alene from cities like Los Angeles, Seattle, and San Francisco.

  • What are the challenges of buying a home in Coeur d’Alene?

The market can be competitive, with homes receiving multiple offers. Also, limited inventory can make finding the right home challenging.

  • What are the benefits of buying a home in Coeur d’Alene?

Coeur d’Alene offers stunning natural scenery and outdoor activities. In addition, the area has a strong sense of community and a variety of amenities.

In summary, if you’re seeking Lakefront Living in Coeur d’Alene, ID, you’ll need to consider the perks and drawbacks of such a location. Once you’ve considered all options and found your dream home, it’s time to arrange for financing that suits your needs and budget.

Need Financing?

Sammamish Mortgage works with borrowers all across Idaho. We offer a broad range of Coeur d’Alene mortgage options, including the ones mentioned throughout this guide. If you’re looking to buy a home in Coeur d’Alene, ID, we’d love to help. Visit our website to get an instant rate quote, or call us today to get the mortgage process started!

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