Denver Home Loans | Colorado Mortgages |Home Financing Information

Here you will find Information about Financing in Denver and Home Loans, Denver Mortgages, FHA loans, Denver FHA 203(K) Loans, Loan Products, Interest Rates, and refinancing. For fast Service fill out our Quick Loan Application  

Conventional Loans

Conventional mortgages are typically mortgage loans for the best of the best. They are without a doubt the most scrutinized loans today. The best credit scores get the best rates. The higher the loan is to the value of the property could require steep private mortgage payments. For those with great credit and equity of at least 20%, conventional loans are fantastic products.

For those with less than perfect credit or equity position of less than 20% comparing conventional mortgages to other products such as FHA or VA is a must.

FHA Loans

FHA or the Federal Housing Administration was formed by the government in 1934 to improve housing standards and conditions. FHA does not lend money, it simply insures that the lender will be paid if the buyer defaults. FHA mortgages are much more forgiving when compared to conventional mortgages. It’s always the decision of the private lender (Investors, banks, credit unions, etc.) to determine whether or not to lend money.

Happy Home Buyers

 

 

What Is An FHA Loan?

FHA loans are offered by Denver area lenders. The FHA does not make loans. It insures, in the event of a default, mortgage loans made by approved lending institutions, such as credit unions, mortgage companies or banks.

HUD FHA LOGO

 

 

 

Advantages of FHA Loans

  • Low down payment - 3.5%
  • Less stringent loan underwriting guidelines - higher debt-to-income ratios allowed.
  • Fully assumable (With qualifying - this will be HUGE in the near future!)
  • 30 yr, 20 yr, 15 yr and ARM programs available

Eligibility Requirements

FHA financing may be by any qualified person, whether a U.S. citizen or not. However, the property must be the occupying borrowers' principal residence. The borrower must also have a social security number.

FHA Mortgage Insurance

Mortgage insurance is required on all FHA loans. The insurance is collected monthly by the lender and paid to FHA, who in turn reimburses lenders in the event of loan defaults.

  • MIP (Mortgage Insurance Premium) is a one-time premium calculated as a percentage of the loan amount. This fee is usually 100% financed and added to the base loan. Currently, this fee is 1% of the loan amount.

Co-signers

FHA allows a borrower to use a non-occupying co-signer for purposes of qualifying for the loan. The co-signer's income, assets, liabilities and credit history are included in the determination of credit worthiness. The co-signer must be a blood relative or, for an unrelated individual, there must be documented evidence of a family-type with a long-standing and substantial relationship not arising out of the loan transaction.

Seller's Concessions and Costs

  • The seller can typically contribute up to 6% towards the buyers closing costs and prepaid items.
  • The ONLY "non-allowable" cost to the seller is the Tax Service Fee. Generally, about $75. (Many people out there still think these fees are in the hundreds of dollars. Not any more.)

And Don't Forget...

Gift funds can be used as part of the borrower's down payment, generally under the same terms as the co-signer requirements.

VA Loans

VA mortgages offer an attractive loan choice for veterans and their families. The loans are guaranteed by the Veterans Administration. Below are a few specific eligibility requirement to qualify for a VA loan:

  • Veterans who served a minimum duty who was not dishonorably discharged
  • VA LOANSActive duty for 181 days
  • Un-remarried surviving spouse of eligible veteran
  • Reservists/National Guard
  • Joint loans with veteran and non-surviving spouse with VA approval
  • Joints loans involving two unmarried veterans
  • Must obtain Certificate of Eligibility with minimum of 25% guarantee

100% Financing – No Down Payment Required

Because these loans are guaranteed by the VA, qualified individuals are allowed 100% financing on home purchases without having to pay private mortgage insurance. VA mortgages have extremely competitive rates with most lenders with a minimum credit score of 620.

Denver Jumbo Loans

A jumbo mortgage is a mortgage loan in an amount above conventional conforming loan limits. For example, in Douglas County CO, this means loans for more than $417,000. This standard is set by the two government-sponsored entities Fannie Mae and Freddie Mac, and sets the limit on the maximum value of any individual mortgage they will purchase from a lender. Typically lenders prefer to have a larger down payment from jumbo loan seekers.

Portfolio Loans

A portfolio mortgage is a loan that does not confirm to the guidelines set forth by Fannie Mae or Freddie Mac. Rather an investor creates the guidelines for, underwrites, funds and services. An investor creates its own set of standards by which the lend money with portfolio mortgage loans. A portfolio loan is not sold on the secondary market, meaning, the investor who gives you the loan is who you will make your payment to each month.

Denver Mortgage Resource website that has plethora additional of information including mortage calculator, closing cost estimator and weekly updates about mortgage rates.

Credit Challenged?

Here's how long you have to wait after a bankruptcy before you can get a mortgage in Denver.

Two Types of Bankruptcies

  • Chapter 7: Debts are wiped out and no longer due. They are discharged.
  • Chapter 13: Debts are “reorganized”. The court provides a payment plan to pay the debts.
    • Discharged if the person sticks to the payment plan
    • Dismissed if they do not stick to the payment plan


Conventional Loans

Conventional loans are non-government loans

  • Chapter 7 Bankruptcy
    • 4 years from the discharge date
    • 2 years from the discharge date with extenuating circumstances (death of a spouse, serious illness). Divorce is not an extenuating circumstance.
  • Chapter 13 Bankruptcy
    • 2 years from the discharge date
    • 4 years from the dismissal date (2 years with extenuating circumstances)

FHA Loans in Colorado

Items needed for Loans

  • Chapter 7 Bankruptcy
    • 2 years from the discharge date
    • 1 year with extenuating circumstances
  • Chapter 13 Bankruptcy
    • 1 year of the payment period must have elapsed
    • All payments must be made on time
    • Need approval of the court

VA Loans in Colorado

  • Chapter 7 Bankruptcy
    • 2 years from the discharge date
    • 1 year with extenuating circumstances
  • Chapter 13 Bankruptcy
    • 1 year of the payment period must have elapsed
    • All payments must be made on time
    • Need approval of the court

Additional Restrictions That May Apply

  • The borrower must have “re-established good credit”, meaning they had no late payments, collection accounts, or any other derogatory credit for the 12 months prior to the loan application.
  • To re-establish credit, you must use credit.
  • The guidelines mentioned here are ONLY for Fannie Mae, FHA, and VA. The borrower must ALSO comply with the guidelines of the individual lender and the mortgage insurance company (if the loan is a conventional loan).

If you have any questions or want to get pre-qualified contact us or call Now 303-955-4220.