| Colorado FHA Loans |
 Colordo FHA Loans allow homeowners to purchase a home with little money out of pocket. FHA loans are excellent for first time buyers because they do not require any reserves in the bank in order to get approved. In addition, the seller can contribute toward your closing costs and family or other approved sources can provide the small down payment that FHA requires.
FHA stands for the Federal Housing Administration. FHA was created in 1934 to help Americans realize the dream of homeownership. FHA was absorbed into HUD in the 1960s and is now known as HUD FHA. The advantages of a FHA insured mortgage product to a homebuyer are many. A homebuyer may apply for a HUD FHA insured mortgage and purchase a home with little or no out of pocket expense! FHA mortgage insurance permits lenders to make mortgages for first time homebuyers without risk. There are no income limits or credit scoring with an HUD FHA insured mortgage, so most anyone can qualify as long as they have a reasonable credit history and can afford the monthly mortgage payments. FHA mortgage programs can also be combined with many first time home buyer grants or down payment assistance programs offered by other agencies. Colorado FHA Loans HUD guarantees eligible loan applicants the ability to obtain mortgages with little or no money down. Colorado FHA loans feature low down payments and flexible guidelines to make it easier to qualify! Colorado FHA loans are popular with first time home buyers but they can be equally attractive to move-up buyers and homeowners looking for a home improvement loan. With an FHA loan you can borrow up to 96.5% of the purchase price of the home. Please keep in mind that a loan will be based on the purchase price or the appraised value, whichever is the lesser of the two. Colorado FHA loan are available to anyone for both purchases or refinance transactions of their primary residence. FHA does not have any income restrictions or location restrictions. They do, however, have maximum mortgage limits that vary by state and county. There are certain programs that are sponsored by city, county and state government programs that piggyback on top of FHA loan programs that offer below market or subsidized payments that have income or location restrictions. Coloardo FHA loan financing is available at up to 96.5% of the purchase price for one to four family owner occupied properties purchase. Borrowers who have other types of loans may refinance up to 97% of the appraised value if they are only paying off their existing mortgage or up to 85% of the appraised value if they are paying off debt or taking cash out of the transaction. Borrowers who currently have a Colorado FHA loan may choose to refinance using the FHA Streamline Refinance program. The main advantage of a Colorado FHA home loan is that the credit criteria for a borrower are not as strict as FNMA or Freddie Mac (conventional loan backers). Someone who may have had a few credit problems should not have a problem obtaining FHA financing. In addition, the seller must pay for part of the "traditional" closing costs (called non-allowable costs) while a borrower's allowable costs can partially be wrapped into the loan. 100% of the down payment and closing costs can be a gift. The seller is also allowed to contribute up to 6% of the sales price toward the buyers closing costs. FHA Programs Include:
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