FHA loans offer some of the home buying opportunities and refinancing programs throughout the entire state of Colorado. The FHA provides opportunities for homeownership to many people that would otherwise be turned down for a conventional mortgage. Another appealing trait of FHA financing, other than it’s lenient qualification requirements, is that the interest rates and other loan terms are competitive with other leading loan products. Oftentimes, FHA loans can even match and compete with the loan terms offered on a conventional mortgage.
Our FHA loan programs are available to either buy a home or refinance an existing mortgage.
FHA Home Buying Loans / FHA First Time Home Buyer Programs
FHA loans are a good fit for first time home buyers. This is especially the case for those in the market to buy a home, but do not have excellent credit. If you have fair or good credit (for instance, in the 600s), verifiable and adequate income history, and 3.5% of the sales price which you can place as a down payment, an FHA home buyer loan may be your best option.
- 96.5% LTV – What a 96.5% LTV ratio means is that you are only required to put 3.5% down. So if you want to buy a home for 150,000, you would only have to place a down payment of $5,250. This money also doesn’t have to be “seasoned” and verified/documented from a personal bank account. You can borrow the money, receive down payment assistance, or a gift and use it for your down payment.
- Easy to Get Approved – FHA loans are much easier to get approved for than other loans, such as a conventional mortgage. We also can prequalify people in as little as 10 minutes. If you want to find out what you can be approved for, give us a call at 303-317-3070.
- Low Interest Rates – Interest rates have been at record lows in Colorado, and our FHA mortgage rates are competitive compared to other lenders, banks, and credit unions (local and national).
- Include Costs in Loan – This does not mean “no fees”. What this means is that your loan fees can be financed into your new home loan. So you don’t have to pay for the closing costs upfront, but can have it included in your borrowed loan amount. Our loan fees and low and we encourage you to compare them next to other lenders offers.
FHA Mortgage Refinancing
The FHA offers multiple options for refinancing. There are a couple of common reasons people choose to select to refinance through the FHA. These include:
Homeowners who are already in an FHA loan may streamline their refinance at a low cost and with very little documentation required (including no appraisal or income documentation and verification). This is known as the FHA streamline refinance and these loans can be refinanced for a low cost and close in a matter of days.
The other FHA refinance loan program that entices many homeowners to choose to refinance through the FHA instead of other options is that the FHA cash out refinance. This cash out loan allows the highest loan-to-value ratios out of any cash out refinance (aside from VA loans). This means you can take out more home equity (cash) through an FHA loan than any conventional refinance program.
Frequently Asked Questions About Colorado FHA Loans:
Are FHA loans strictly or a first time home buyer?
The FHA became famous for it’s lax qualification guidelines allowing first time buyers a relatively easy way to finance a home purchase. While the majority of those who apply for a FHA loan are first time home buyers, they are available for anyone. You must not currently own a home though, or you must plan on selling your current home if you want to get a FHA loan for your new purchase.
What is the loan process like? How long does it take to get approved and to close the deal?
We can help you get pre-approved in a matter of minutes. An official approval with what conditions are required to close the loan should only take 24 hours or less (if your application requires further review it may be delayed another 1-2 days). Once you are approved, we should be able to close your loan in 2-3 weeks if you efficiently provide us with the information we need from you such as employment verification and bank statements (see more on this below).
What sort of documentation is required to close?
To get pre-approved for a FHA loan call us at 303-317-3070 or contact us through this website. If you would like to be prepared to apply for a FHA loan in Colorado, below are the general requirements the will be required for your loan (to prequalify, you don’t need to provide any of this information, you can just speak with a loan representative).
- Residential History – Past two years of residency, such as a home, apartment, or room rented.
- Employment – Details of your job, such as the location and your employers name.
- Income – Last two months of paystubs, and two years of tax returns (w-2 or 1099).
- Bank Statements – Last two months of bank statements.
- Asset Information – If you own any assets such as stocks, bonds, or other assets.
- Credit Check – For you and any co-applicant.
Can I get a FHA Loan if I have had a foreclosure?
The FHA states that after a home foreclosure you must wait 2 years before you can get a FHA loan.
How soon after a bankruptcy can I get a FHA Loan?
The FHA rules concerning bankruptcies is that you must wait 3 years before you can apply for a FHA loan.
How much are FHA closing costs?
FHA loans do not have a set amount of closing costs. It depends on the loan size, specific lender, and other factors such as your credit and finances. We encourage you to get what is called a “good faith estimate” from us which will show the loan costs. You should consider also getting prequalified with at least 2-3 other lenders and see who provides you with the best loan terms (fees and rate). Our loans are quite competitive in terms of closings costs and interest rates, especially on FHA loans.
I already have an FHA loan, can I get another?
Unfortunately, the FHA only permits one FHA loan per individual or married couple.
Have more questions about FHA loans? Give us a call at 303-317-3070.