Buying Before You Sell in Idaho: The Whole Picture
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Everything an Idaho homeowner needs before making an offer on the next house, in the order the decisions actually arrive.
One: what the exemption is really worth
Idaho Code 63-602G(1) exempts the first $125,000 of market value or 50% of market value, whichever is the lesser. Those branches cross at $250,000 and every Idaho metro's typical home is above it, so the exemption is a flat $125,000 in practice. That also makes it regressive as a share of value: 35.4% of a typical Pocatello home, 20.7% of a typical Coeur d'Alene home. Detail on the exemption page.
Two: know that you will lose it during the overlap
Subsection (2)(a) requires the homestead to be owner-occupied and used as the primary dwelling place of the owner, (2)(f) defines that as the single place the owner treats as home, and (4)(c) repeats the condition for keeping the exemption without reapplying. No tenant exception appears anywhere in the section.
So all three structures lose it on the departing home. That is worth knowing early because it removes a tiebreaker that exists one state south, where Utah Code 59-2-103(6)(b)(ii) preserves Utah's exemption for a tenant's primary residence. See the owner-occupancy page.
Three: check the county limit
Idaho's 2026 one-unit conforming limit is $832,750 in 43 of 44 counties, including Ada, Kootenai, Bonneville, Canyon, Twin Falls, Bannock, Latah, Nez Perce, Madison, Valley and Blaine. Teton County alone is $1,249,125, with $1,599,375 on two units, because it shares CBSA 27220 with Jackson, Wyoming.
Note which resort county is which. Blaine, home to Sun Valley and Ketchum, sits at the baseline. Teton, on the Wyoming side of the Tetons, does not. The two are $416,375 apart. See the jumbo page.
Four: pick the structure on financing grounds
Carry both and recast, borrow against the departing home's equity, or keep it and rent it. The structures page compares them.
The rental-income rules changed in September 2026
Current, and stricter than older articles describe. Fannie Mae Selling Guide B3-3.8-05, dated 09/02/2026 under Announcement SEL-2026-08:
- A primary residence being vacated and converted to an investment property when the borrower buys a new primary residence is eligible.
- The lender must document a current housing payment to use any departing-residence rental income.
- Documentation is a complete appraisal with market rents, a Form 1007 rent schedule, or market analysis tools with at least three comparable rentals from the same market area where possible.
- Lease agreements are not permitted for any departing residence.
- Adjusted net rental income is gross rent times 75% less that property's PITIA. Positive offsets that PITIA only; negative is added to the debt-to-income ratio.
- Six months of reserves for the vacated property's PITIA when the borrower has less than 12 months of property management experience.
Mechanics on the Form 1007 page, and the Idaho version on the rental conversion page.
Where in Idaho you are moving
All seven Idaho metros we track rose year over year as of August 2026, from Boise City and Idaho Falls at 1.4% to Rexburg at 5.8%. Rising markets support shorter expected marketing times and lighter reserve tiers. Read the move-up market page, then Boise, Coeur d'Alene, Idaho Falls, Twin Falls and Pocatello or Teton Valley.
Two situations with different answers
Under contract but not closed and listed but not sold are different underwriting problems. They have their own pages.
Frequently asked questions
What should an Idaho homeowner check first before buying the next house?
What the homeowner's exemption is worth and that it will be lost during the overlap. Idaho Code 63-602G(1) makes it a flat $125,000 for any home above $250,000 of value, and 63-602G(2)(a) requires owner-occupancy with no tenant exception, so every structure forfeits it on the departing home.
What are the 2026 conforming loan limits in Idaho?
$832,750 on one unit in 43 of Idaho's 44 counties, including Ada, Kootenai, Bonneville, Canyon, Twin Falls, Bannock and Blaine. Teton County alone is $1,249,125 one-unit and $1,599,375 two-unit, because it shares CBSA 27220 with Jackson, Wyoming.
Is Sun Valley in a high-cost county for loan limits?
No. Blaine County, which contains Sun Valley and Ketchum, sits at the $832,750 baseline. Teton County on the eastern border is the only Idaho county above baseline at $1,249,125, a difference of $416,375 between two resort counties in the same state.
Did the rules for using rental income from a departing residence change?
Yes. Fannie Mae Selling Guide B3-3.8-05 is dated 09/02/2026 under Announcement SEL-2026-08. Lease agreements are no longer permitted for any departing residence, qualifying income is gross rent times 75% less that property's PITIA as an offset only, and six months of reserves apply under 12 months of property management experience.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Idaho's homeowner's exemption is administered county by county under Idaho Code 63-602G and 63-703, and eligibility depends on your facts; your county assessor, your CPA or an Idaho attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.