Discerning home buyers in Colorado Springs turn to popular financing options like FHA loans to obtain the funding they need to buy their dream home. The Federal Housing Administration insures these loans, and the relatively low allowable down payment makes them popular with first-time home buyers. It may also be practical for those who want to buy a house with a less than perfect credit score. Basically, if you are a low to moderate income home buyer who is unable or does not want to make a big down payment, this loan is for you. Here’s how you can get FHA loans in Colorado Springs:
More on FHA loans
The funding can come from a grant or gift, and the down payment can be as low as 3.5 percent. Moreover, the required FICO score is lower (above 580). Just remember that you are required to pay Mortgage Insurance (MI) for the entire life of the loan. But don’t worry, as the premium is greatly reduced, unlike with conventional loans. For more information on your MI premium, get in touch with a reputable mortgage company that can help you get an FHA loan in Colorado Springs.
Finding the right source for the loan
Consider an established and reputable mortgage company that specializes in helping their customer find the best residential loans that fit their needs. Make sure they have a proven track record of providing high-quality and dependable services.
Applying for the loan
FHA loans were originally meant for the private sector, so their application process is similar to other mortgage products. However, you need to get pre-approved. A mortgage company can help you with that by looking into your financial situation and explore how much you can afford to borrow. This way, you can also focus on finding the right home that you can afford in the long run.
Choose your loan term
FHA loans in Colorado Springs can be paid off in 15 to 30 years. Depending on your situation, financial hardship relief may be provided. There are no prepayment penalties, and the home’s seller can pay the closing costs of up to six percent.