|
FHA Loans- An FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.
FHA mortgages in Denver include programs to purchase with a downpayment of 3.5% at competitive interest rates and terms. You can also refinance your existing mortgage either into an FHA mortgage (from a conventional mortgage) or streamline refinance your existing FHA mortgage. They can also be used on 1-4 unit properties, condos, townhouses, and modular homes. FHA works with down payment assistance programs, and our underwriters use 'real world' underwriting guidelines when calculating income, debt and employment.
FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.
Some of the other benefits of FHA financing:
- Only a 3.5 percent down payment is required.
- Closing costs can be financed (with approved seller concessions).
- Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
- More flexible underwriting criteria than conventional loans
- FHA limits the amount lenders can charge for some closing cost fees
- Loans are assumable to qualified buyers.
Many people don't know that FHA mortgages allow for non-occupant co-borrowers to help you qualify when your debt ratios may be a little too high. In this example a parent, fiance, or sibling would co-sign for the mortgage to help you qualify.
FHA loans have some of the lowest interest rates for fixed rate mortgages. While they also offer adjustable rate mortgages as well. FHA is a great mortgage and not just for first time homebuyers. They are also now 50% of all mortgages people are using to buy or refinance their homes regardless of first-time home buyers or not.
FHA loans can assist new home buyers, assist consumers with credit challenges, and also consumers who find themselves in adjustable rate mortgages that are no longer affordable.
For more information or to get pre-approved now call 303-779-0591 x 101 and we can answer your FHA mortgage questions.
|