FHA Loan

Insured by the United States Federal Housing Administration, FHA loans are the most popular of government-backed loans. FHA loans:

• have more flexible lending requirements, making them easier to qualify for than conventional loans (borrowers with credit scores of 580 or lower can still qualify);
• require lower down payments (for many FHA borrowers, the minimum down is 3.5%); and
• enable borrowers with adjustable-rate mortgages to refinance into fixed-rate FHA loans.

Keep in mind that the FHA does not lend money. Rather, it insures mortgages. This means that even though minimum down payments are relatively low, you will need to pay mortgage insurance. Every FHA home loan in Colorado has two insurance premiums: (1) a premium of 1.75% of the loan amount, paid up front at closing; and (2) an annual premium between 0.45% to 0.85%. Refinancing is the only way to avoid having to pay these premiums.

To learn more about FHA loans in Colorado, contact our Fort Collins office today! Excel Financial are experts in handling FHA mortgages in Colorado.