Colorado home buyers have many reasons to love FHA loans! An FHA home loan offers multiple benefits to Colorado Springs, Colorado home buyers including a low down payment, low interest rate and flexible lending guidelines. FHA loans are also a great alternative to Conventional loans for those that are tight on cash and find they need down payment assistance.
FHA loans are backed by the Federal Housing Administration which offers insurance to your lender in case of default. Due to this, many home buyers find that an FHA loan allows them to bypass the stricter credit and loan-to-value issues associated with conventional loans.
Why Colorado Home Buyers Love FHA Loans
- There are no income or geographical limits for FHA financing (there may be for your local first time home buyer down payment assistance programs)
- Sellers can offer concessions up to 6% of the sales price
- Mortgage insurance is required up to 5 years
- FHA home loans offer a low 3.5% down payment. If you are not able to provide your own funds, FHA does allow the down payment to be gifted to you by a family member, employer or charitable organization.
- Bad Credit or No Credit is OK! FHA does not require perfect credit. In fact, if you have gone through a bankruptcy or foreclosure, the time before you are able to purchase again is much shorter with FHA than it is with a conventional loan. FHA also allows you to buidl a credit history through non-tradiitional tradelines such as your current rental payments, auto insurance, cable or satellite service, utilities and many other vendors that do not typically report to the major credit bureaus.
FHA Loan Limits
FHA does have maximum loan limits dependent on state and county. All Colorado Counties have their own FHA loan limit which determines the ceiling on the amount of money you are able to finance. The El Paso County Colorado loan limit is currently $325,000 however this will be declining on October 1st. If you have found a home and are interested in writing an offer, it's important that your FHA case number is assigned by your lender prior to October 1st. You will need an accepted contract prior to this happening so time is of the essence
Check additional Colorado County FHA Loan Limits from October 1 - December 31, 2011.
There are several things you are able to do to make sure your FHA loan approval moves as quickly and as smoothly as possible. Deliver your loan documents for preapproval as fast as you can to your lender, work with a knowledgeable FHA loan specialist, and try to be available as much as possible when your lender calls with a question or need.
Why Colorado Home Buyers Love FHA Loans was written by Rebekah Radice. To learn more: Check out our FREE Top 20 Homebuyer Secrets that can save you thousands of dollars! Plus browse our Home Buying Resources section and fill-out a free no-obligation secure online application or call us in Colorado Springs, Colorado at 719.387.1368 with any questions.
Why Colorado Home Buyers Love FHA Loans was written by Rebekah Radice.