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 and other home loans. For fast Service fill out our Quick Loan Application
Conventional mortgages and Conventional home loans 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 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.
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.
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.
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.
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.
Gift funds can be used as part of the borrower's down payment, generally under the same terms as the co-signer requirements.
VA Home 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:
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.
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.
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.
Conventional loans are non-government loans