Federal Housing Administration (FHA) Loans in Colorado
Are there any benefits to qualifying for FHA mortgage loans in Colorado? Everyone has heard of the Federal Housing Administration (FHA) Loan, but we’re not so sure that people really understand what it is all about. Federal Housing Administration (FHA) is still the go-to program for borrowers with lower credit scores or little credit history. 3.5% is the typical minimum down payment, and Down Payment Assistance (DPA) programs from various agencies such as CHAC & CHFA are typically allowed with many wholesale lenders.
Qualifying for FHA Mortgage Loans in Colorado
Federal Housing Administration (FHA) does not hit your interest rate for low credit scores the way Conventional loans do. A credit score below 680 on a conventional loan has overlays and price adjustments. At a certain point, FHA mortgage loans in Colorado become a much better deal. With Federal Housing Administration (FHA) you can get a much lower interest rate and much better deal if you have a lower credit score. Generally speaking, if your credit score is between 580 and 660, a Federal Housing Administration (FHA) loan may be the way to go.
- Federal Housing Administration (FHA) loans allow credit scores down to 550 FICO scores with AUS approval.
- 580+ FICO scores allowed on Non-Credit Qualified Streamlines.
- Max DTI Ratios per AUS approval for 600+ FICO borrowers.
- Max DTI Ratios of 31/43 for 550 – 599 FICO borrowers.
- Manual Underwrites will allow for higher ratios above 31/43 on 600+ FICO borrowers with Compensating Factors.
- NO Income Verified and NO Max LTV / CLTV on FHA Streamlines.
- Federal Housing Administration (FHA) Loan Streamlines allow for 2nd Home & NOO occupancy types, and NO appraisal required.
- Non-traditional credit permitted on manual underwrites.
- Non-occupying co-borrowers allowed with family members up to 96.5% LTV on purchases.
- Refer to FHA HUD Handbook 4000.1 regarding underwriting guidelines.
Contact Dave Kevelighan regarding Federal Housing Administration (FHA) scenarios & pricing today!