How FHA Loans Can be Helpful to Buy a House

Posted by elevationmtg on December 16th, 2020

Buying a house is never simple or easy. There are various factors to consider, such as your financial capabilities to your homeownership responsibilities. On top of that, you might need to start thinking about a home loan,especially if this is your first timepurchasing a property.

Several loans are available for potential homebuyers, such as conventional loans, USDA loans, and even VA loans, if you're eligible. However, there is one type of homebuyer assistance program that is the best option for the first-timers: FHA loans in Colorado Springs.

What is a Denver FHA loan?Also known as the Federal Housing Administration (FHA) home loan, it is a type of mortgage insured by the FHA for low to moderate-income borrowers. Only approved lenders in Colorado Springs may issue these loans since they have specific eligibility requirements.

How can FHA loans in Denver help you buy a house? Here are some of their advantages:

1. Lower down payment requirements

Most first-time homebuyers have trouble financing their property—which is why many end up waiting until they're at least 33 to save up enough money. With an FHA loan in Denver, you can speed up that process.

FHA loan borrowers can make down payments for as low as 3.5%, with a credit score of 580 and above. In fact, a survey has found that more than 60% of FHA applicants chose the loan program mainly because of its small down payment.

2. Flexible guidelines

Conventional, USDA, and Veterans Affairs loans have strict qualification requirements before you can apply for them. For example, the VA loan is only available for current and retired US service members. Meanwhile, a conventional mortgage requires borrowers to have a good credit score and a stable income.

On the other hand, Denver FHA loan guidelines are relatively more comfortable to meet. FHA loans in Colorado Springs only require you tocomply with mortgage insurance for the entirety of the program.

3. Lower Credit Scores

First-time homebuyers often get rejected when applying for regular mortgage loans. This could be due to the high credit score requirement for most programs. Still, there's hope with Denver FHA loans. You only need a credit score of at least 580 to qualify for assistance.

About the author:

Elevation Mortgage, LLC is a mortgage broker and we serve loans in Colorado. Our focus is VA loan, FHA loans, Conventional loans and Reverse Loans. Our office is located in Colorado Springs, which is where the majority of our business comes from.