Reason to Opt for FHA Loans in Colorado Springs

Posted by elevationmtg on March 16th, 2020

FHA loans are a mortgage option from the Federal Housing Administration, and it is popular with first-time home buyers. Despite that, the loan is not just limited to new homeowners. FHA loans in Colorado Springs are covered by the Department of Housing and Urban Development, which is also responsible for establishing the eligibility criteria and specific requirements for home buyers who may be interested in this type mortgage. You can get an FHA loan through mortgage lenders and banks, and FHA provides insurance as additional protection.

Are FHA loans right for you? Here are reasons why you may want to consider them:

• Reasonably priced – FHA loans in Colorado Springs are aimed at low to moderate income borrowers who may be unable to make a big down payment. Mortgage rates are usually lower than that of conforming loans. Borrowers with a credit score of 660 would typically qualify for the same interest rates as that of conventional borrowers with a 740 score.
  
• Lower credit score requirements – FHA has low requirements for down payments and credit scores, unlike with conventional loans. You could qualify with at least 580 as your credit score and a 3.5 percent down payment. If your credit score is 500 to 579, you still pay qualify for an FHA loan but will require 10% down versus 3.5%.

• Forgiving closing costs – With FHA loans, you are allowed to pay up to six percent of your loan amount for the closing costs. Most home buyers can benefit from that, especially those who are buying a home for the first time. Conventional loans require you to pay only up to three percent.
  
• Insurance and flexibility – The mortgage is insured by the FHA throughout its life. You can choose loan terms between 15 and 30 years. In some cases, financial hardship relief may be provided to you. The loan may also qualify you for the FHA 203K loan or rehab loan, which you can use for repairs.

• Assumable – FHA loans in Colorado Springs are assumable. This means buyers can acquire the existing FHA loan of the seller instead of taking out a new mortgage. This can be beneficial in an environment with rising interest rates.

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.

Contact Details:

NMLS ID - 1738617

Contact Person - Reed Letson

Designation – Owner

Address – 7 E Bijou Street, Suite 218

City – Colorado Springs

Country - United States

Phone Number – 719-666-3893

Company Email ID – info@elevationmtg.com