The Treasure Valley grew fast, and builders followed. Boise investors still build spec homes and small rentals, but with more attention to resale pricing, impact fees and which city the lot sits in.
In short: LendingStreet finances ground-up construction in Boise and the surrounding Treasure Valley for investors building 1 to 8 units, including spec homes, townhomes, duplexes and small 5-8 unit buildings. Loans are sized on loan-to-cost, terms are set per project, and funds are released through inspected draws. Plans, permits, a budget that reflects local fees and a builder with a track record are what we review first.
Inside Boise, infill happens on the Boise Bench, in the Vista and Morris Hill areas, and in neighborhoods close to downtown, where older lots can take a new home, townhomes or a duplex. Boise adopted a modernized zoning code in 2023 that changed what can be built in many areas.
Meridian, Nampa, Kuna, Eagle and Star see more subdivision spec building. These cities each have their own zoning, fees and timelines, and resale values vary widely between them.
During the strongest growth years, builders could sell almost anything they finished. Today, resale pricing and days on market matter more, and builder incentives in new subdivisions compete with small spec builders. Choose floor plans that fit what buyers in your exact area are paying for, and keep a rental exit in mind. A well-located Treasure Valley home that does not sell quickly can often lease and refinance into a DSCR loan.
Common Treasure Valley 1-8 unit projects: Each type has its own exit and its own local issues.
| Project type | Where it is common | Local note |
|---|---|---|
| Spec single-family | Meridian, Kuna, Nampa, Boise Bench | Sale exit; compare against builder inventory |
| Townhomes | Boise near downtown and the Bench | Sale or rental exit |
| Duplex or fourplex | Boise infill, Nampa | Rental exit into DSCR |
| Small 5-8 unit building | Boise corridors | Confirm zoning under the new code |
Boise permits run through the city's Planning and Development Services. In Ada County, the Ada County Highway District handles public roads and charges its own impact fees, separate from city fees. Canyon County cities handle roads and fees differently. Price all of it before you commit to a lot.
Idaho does not have a real estate transfer tax, which keeps closing costs modest. Title and recording costs still apply.
Some Treasure Valley lots have irrigation ditches, pressurized irrigation systems or shallow groundwater to work around. Cold winters and hot summers affect concrete and framing schedules. Because a lot of new inventory came online during the growth years, build a sale price you can support with recent comparable new-build sales.
We size ground-up loans on loan-to-cost. Add up land, hard costs, soft costs such as plans, engineering, permits and fees, and a contingency, and the loan is a share of that total. The rest is your equity.
We also check the project against what the finished building should be worth in Boise. If the cost is close to the expected value, the loan is usually smaller, because there is less room for overruns or a soft market.
This example is illustrative and not a quote. An investor builds a spec home on the Boise Bench to sell on completion. Land costs $220,000, hard costs are $480,000, soft costs are $65,000 and the contingency is $30,000, for a total project cost of $795,000.
At a sample 85% loan-to-cost, the loan is $675,750 and the investor puts $119,250 into the project. Most of the loan funds through draws as work is completed.
If the finished property sells for $925,000 in total and selling costs run about 6%, or $55,500, net proceeds of $869,500 repay the $675,750 loan and leave $193,750 before interest and carrying costs, against $119,250 of cash invested.
| Item | Amount |
|---|---|
| Land | $220,000 |
| Hard construction costs | $480,000 |
| Soft costs (plans, engineering, permits, fees) | $65,000 |
| Contingency | $30,000 |
| Total project cost | $795,000 |
| Loan at a sample 85% LTC | $675,750 |
| Investor cash in the project | $119,250 |
| Sale price | $925,000 |
| Selling costs at about 6% | $55,500 |
| Left after repaying the loan, before interest and carry | $193,750 |
After closing, the loan funds in stages. You or your general contractor request a draw when a stage is complete, an inspection confirms it, and funds for that work are released.
Keep your contingency in the budget for surprises like rock, soil conditions or price changes, which are common on Boise sites. Draws are tied to the approved budget, so overruns beyond it generally have to be covered by the borrower.
Plans, permits, budget and builder experience matter most. Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify.
A realistic budget is the other half. Lenders compare your line items with local costs, so a Boise budget that skips site work, utility connections or fees will be revised before the loan is sized. A contingency of several percent of hard costs is common.
If you are building to sell, the exit is the sale of the finished home or units. If you are building to rent, the usual exit is a DSCR refinance once the property is leased, with a standard minimum DSCR of 1.0x and 30-year terms available.
Some investors keep both options open until the end of the build and decide based on the Boise market at completion. Having comparable sales and rents ready makes either path easier.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote on a Boise project, use the form below or call (877) 298-1001 with your plans, budget and land details.
Yes. We finance investor spec homes across the Treasure Valley, including Meridian, Nampa, Kuna and Eagle, subject to plans, permits, budget and builder experience.
The Ada County Highway District handles public roads in Ada County and charges impact fees separate from city fees. Include them in your soft costs.
It can. Boise adopted a modernized zoning code in 2023, so check current rules for your lot rather than relying on older guidance.
Yes. A finished, leased duplex can refinance into a DSCR loan that qualifies on rent, with 30-year terms available.
Draws are tied to the approved budget, so overruns beyond the contingency generally have to be covered by the borrower. A realistic budget and contingency protect the project.
Usually only with an experienced general contractor on the project. A borrower with no build track record and no experienced GC usually does not qualify.
Loan-to-cost is the loan divided by the total project cost, including land, hard costs, soft costs and contingency. Construction loans are sized this way, with terms set per project.
Yes. Small 5-8 unit buildings are part of our residential construction program. Buildings of 9 or more units are commercial.
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