Buying a home is challenging for most home buyers. A house is a big investment, after all. It requires a significant amount of your time to find the perfect property and sufficient funding to ensure that you can pay the down payment and comfortably afford your monthly mortgage payments in the long run.
Getting pre-qualified for a mortgage is a good way to get started in house hunting. It’s also important to understand the different options when it comes to home loans in Colorado Springs. Here, we’ve listed the kinds of loans you can find in Colorado Springs and their advantages:
These home loans may not be insured or guaranteed by a federal agency, but they conform to the guidelines established by Fannie Mae and Freddie Mac. So, they usually come with better rates, lower fees, and good terms than other home loans. Most borrowers think that they require 20 percent down to get qualified, but there are mortgage companies in Colorado Springs that can help you get this loan for much less. Just be sure you have a stable income and good credit score.
If you have served in the US service, then you may qualify for these government-backed loans. These are guaranteed by the US Department of Veteran Affairs and they offer benefits like 100 percent financing and the option to get more than one VA loans at once. It does not come with mortgage insurance and the minimum credit score required is 620.
They are like conventional loans, but they exceed the limit of the loan, making them ideal for borrowers who have excellent credit scores and are looking to finance a more expensive property.
Loans insured by the Federal Housing Authority are suitable for low to moderate income home buyers who may need help in making a big down payment.
Down Payment Assistance
There are home loans or grants for families that may not have enough funding for the down payment or closing costs of their dream home. It requires only $1,000 from borrowers, with a minimum credit score of 620.
Low to moderate income households can turn to USDA financing if they are looking for primary residence in rural areas. The loans are eligible up to a hundred percent, and there is a 30-year fixed rate.