An FHA loan is possibly the best home loan program for a first time home buyer with limited access to financial assets. However you should always have options, especially if you are a first time home buyer.
The FHA does not set a required minimum credit score in order to be applicable for an FHA loan but instead, each borrower's credit in considered together. These loans have some leeway, even if you have filed for bankruptcy before.
Contact us today to find out how much you can get approved for.
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.