Yes! FHA Loans can be a great way to purchase a home in Colorado because they offer:
In addition, loan limits were recently raised and a higher percentage of homes qualify for FHA financing, making it more popular than it ever has been. In fact, since 2005, the FHA loan Program has seen a 900% growth.
Here are some more benefits of an FHA loan, that many people do not know.
Yes, an FHA loan is possibly the best home loan program for a first time home buyer with limited access to financial assets. With this being said be sure to consult with an experienced mortgage broker. They can help explore home loan options and get you qualified for a home loan that suites your unique situation.
If you want to buy a house in Denver with an FHA loan, you will need to meet a few requirements.
Yes, you can use a monetary gift towards your down payment on an FHA Loan. You can receive the gift from a family member, close friend, charity organization, or employer.
No, FHA Loans are intended to be used on primary residences only. Investment properties and second homes need to be financed through Conventional Loans.
Add up all of your monthly payments that will show up on your credit report. Things like car payments, student loans, credit card payments are examples. Then divide that by your gross monthly income. You will come up with a percentage that is your debt-to-income ratio.
Yes. There are two requirements. First one of the borrowers must live in one of the units as their primary residence. Second, the property must be 4 units or less.
In 2019 there have been increases in 3000 counties across the United States where the new high cost limit is $726,525 for a Single Family Residence and a new floor of $314,827. If you would like to see what the county loan amount limit is for any county in the United States, you can click here.
If you chose to use an FHA- insured mortgage loan to buy a house in Denver, you should know the limits on how much you can borrow. The Department of Housing and Urban Development establishes FHA mortgage loan limits, partially based on the limits set on conventional mortgage loans. FHA loan limits tend to vary from one county to the next because they are constructed from median home values.
In 2020 the maximum loan amount for FHA Loans is $561,200 for Denver County, Colorado.
Closing costs are additional fees charged by the lender. They are not included in the purchase price of the property. Closing costs typically range between 2% - 6% of the purchase price.
There are a few ways to reduce your closing costs:
The mortgage insurance premium is a fee that is automatically added into your closing cost. The fee is set at 1.75% of the purchase price. In addition, you will also have mortgage insurance premium built in to your monthly payments that ranges anywhere from .45% to 1.05% of the loan amount. This amount is updated every year according to the balance on the loan.
Before you start shopping for a home in Colorado it is a good idea to get pre-approved first. This way you will be able to know much home you can afford.
To get pre-approved for an FHA Loan go to our secure loan application. When you are pre-approved you will know how much home you can afford and your offer may be more attractive than a competitor's offer because they know you are pre-approved.
The Federal Housing Administration, or FHA, was created in 1934 as part of the National Housing Act. This government agency has made sure that loans made by banks and other private lenders for home building and home buying are insured. The objective of this organization is to improve housing conditions and standards, provide a functioning home financing system, and stabilize the mortgage market. FHA loans are a result of this effort.
Since 2005, the FHA loan Program has seen a 900% growth. Some key changes have been made, making it more popular than it has ever been. FHA maximum loan limits have been raised across the board and housing prices are in a slump. This means that a higher percentage of homes qualify for FHA financing than ever before!
These FHA Loan requirement changes mean millions more can now qualify for an FHA Loan, one of the best choices for prospective home buyers in today's market.