FHA Home Loans in Colorado
A large number of prospective home buyers and existing homeowners living in Colorado may benefit from 2017 higher FHA mortgage loan limits in the counties around Denver, Boulder and across the state.
FHA insure mortgage loans. They do not make them. Your lender helps you with that part. One of the requirements for FHA loans are its upfront mortgage insurance of 1.75% of your loan amount. Example: If your loan is $350,000, the upfront MI is: $6,125. Borrowers typically finance the upfront MI into their loan. Additionally, the second requirement for an FHA loan is monthly mortgage insurance.
FHA Loan Features
Excellent product for people who have credit scores below 640
Allows higher debt ratios than conventional loans with automated underwriting
Employment less than 2 years is permitted with explanations
Allows non-occupant co-borrowers
Allows a gift for down payment
Allows the seller to pay up to 6% of the purchase price toward your closing cost
Requirements to get a Colorado FHA loan to buy a home are listed below:
Primary Residence – The home that you are purchasing must be your primary residence. A duplex, triplex or fourplex are allowed, but you need to live in one of the units.
Credit Score – A credit score of 580 or higher is needed for FHA loans by banks and traditional lenders. Our programs actually will allow someone with a 500 credit score but they'll need 10%
Job History – 2 years of documented employment history. Unemployed for six months may be accepted if currently employed.
FHA 3 to 4 unit properties - There is an important rule based on rental income.
A Triplex or Fourplex (Quadplex) must pass a self-sufficiency test to receive financing. The total monthly market rents as determined by an FHA appraiser for all units (including the one you intend to occupy) must be greater than the new monthly mortgage principle, interest, taxes, homeowners, and private mortgage insurance. In addition, a vacancy loss be factored in too. HUD applies a vacancy loss rate on the market income of 25%. So, the following formula applies.
(Market Rents per appraiser * 75%) > (Principle + Interest + Taxes + Insurance + MI)
Military Home Loans
The Department of Veteran's Affairs helps military veterans, active duty members, reservists and national guard, and qualifying surviving spouses purchase a home. Some of the highlights are:
100 percent financing with full VA entitlement
No money down loans up to $424,100
No private mortgage insurance
Fixed- or adjustable-rate mortgage choices
VA funding fees can be rolled into the loan
4% allowable Contribution from Seller
No prepayment penalties
Veterans Affairs Loan Requirements
Veteran's VA Certificate of Eligibility
Past 2 years W2's
Pay stubs or LES for most recent 30 days
2 months of most recent bank statements
Copy of DD form 214, if discharged
Credit score minimum of 580
I am a veteran myself having served in the Air Force and went to Lowry AFB. I would be honored to help you.
To confirm your eligibility for a VA loan, you’ll first need a Certificate of Eligibility (COE).
Thinking About a Refinance?
You are able to refinance your Colorado VA loan into another VA loan if the interest rate is less tan what you have now. Additional reasons to strongly consider this are:
NO money out of pocket
Available even if you don't live in the property anymore!!
USDA Rural And Agricultural Loans
Thinking About a Buying a home in rural or suburban areas?