Your first step is to apply online or call a 303HomeFinancing expert. We’ll take you through all the options, discuss rates and loan types and help customize a loan just for your specific lending needs. What to expect when applying for your home loan:
During your free consultation, a loan officer will:
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
A FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loans. Available to all buyers, FHA loan programs are primarily designed to help low- and moderate-income families who do not meet requirements for conventional loans that adhere to more strict underwriting guide lines. However, there are cases in which borrowers who are eligible for conventional financing would still choose a FHA loan. FHA loan programs are particularly beneficial to those buyers with less available cash as the required down payment is lower than for conventional loans. Rates on FHA loans are also generally lower than conventional Colorado mortgage loans. Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.
FHA Loan Requirements
It’s possible for first-time home buyers to get a conventional mortgage with a down payment as low as 3%; however, the down payment requirement can vary based on your personal situation and the type of loan or property you’re getting:
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no down payment requirement. This program was designed to help military veterans realize the American dream of home ownership.
Colorado VA loans are made by VA approved lenders and are guaranteed by the U.S. Department of Veterans Affairs (VA) to eligible veterans. The guaranty means the lender is protected against loss if the loan fails to repay. In most cases, no down payment is required on a VA guaranteed loan, and the borrower usually receives a lower interest rate than is ordinarily available with other loans. Mortgage insurance is not required; however, the VA charges a funding fee to issue a guarantee. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount or waived if the veteran is disabled. Veterans that are eligible are all active duty, honorably discharged Veterans with 22 months service, or reservists with 6 completed years—or a qualifying combination. A Certificate of Eligibility or Statement of Service is required to qualify for the VA loans. You may be eligible for a VA Home Loan if you meet one or more of the following conditions:
You have served 90 consecutive days of active service during wartime, OR
You have served 181 days of active service during peacetime, OR
You have more than 6 years of service in the National Guard or Reserves, OR
You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
Like any other mortgage program, homebuyers must meet basic qualifications to be eligible. However, with the VA Loan program, in addition to credit and income requirements, potential applicants must meet basic service requirements.
These service requirements include only one of the following:
A USDA Loan is guaranteed by the US Department of Agriculture (USDA) and is intended for the purchase of rural property. USDA mortgage loans require a reasonable credit history along with income restrictions. USDA loans allow for 100% financing with the ability to finance closing costs and repairs, provided the property appraises. There are many benefits to USDA home loans in Texas.
Conventional mortgage loans in Colorado are the most common types of home mortgages, and are insured by either Fannie Mae or Freddie Mac. With down payments as low as 5%, conventional loans offer better terms with lower mortgage insurance costs and rates based on credit rating. Additionally, conventional home loans offer the ability for borrowers to finance multiple properties including second homes as well as investment properties.
Reverse Mortgages allow senior homeowners to convert a portion of their home equity into cash while still living in the home.
Benefits of a Reverse Mortgage
What is a Reverse Mortgage?
Think of it as an "advance" on the equity in your home. The reverse mortgage loan will use the equity in your home to give you tax free monthly income, and/or line of credit.
What is the qualification?
Very simple, the youngest borrower must be over the age of 62 and there are no outstanding delinquent federal debt. There is no income and credit qualification on a reverse mortgage.
Does the bank own my home?
Absolutely Not!!!! What are my monthly payments? There are none, the reverse mortgage pays you a monthly income or you have access to a home equity line of credit.
How much money can I receive?
The amount of money you receive is determined by your home value, the age of the youngest homeowner and the current interest rate. A Reverse Mortgage Expert will assist you in evaluating your options and calculating the maximum amount of money that will be available to you.
What costs are involved?
Just like a standard mortgage loan, reverse mortgage costs include appraisal, credit report, title insurance, legal fees, loan origination, and recording fees. All of these normal loan costs, can be included in your loan balance.
Will I retain ownership of my home?
YES, You retain title and the government designed Home Equity Conversion Program (HECM) allows the borrower to remain in the home until the last remaining borrower vacates or sells the home. Borrower's heirs receive 100% of the remaining equity after loan payoff.
How do I receive the money?
1. Tenure Option - Receive equal monthly payments for the rest of your life as long as you occupy the property as your primary residence
2. Line of Credit - Draw cash from the reverse mortgage whenever you need it. Interest is only charged on the amount borrowed
3. Fixed Term - Receive equal monthly payments for any fixed period of time
4. Lump Sum - You can receive all the proceeds at close of escrow
5. Modified payment option - You can take any combination of the above payment options
When do I have to repay the Reverse Mortgage?
When the borrower permanently leaves the home, whether they move, sell the house or passes away If a spouse passes away the remaining surviving spouse continues to receive the full benefits of the reverse mortgage, with no repayment until they decide to permanently leave the home.
How is the Reverse Mortgage paid off: Typically repaid from the proceeds of the sale of the home or refinance by your heirs. All remaining equity goes to your heirs What is a counseling certificate: Free counseling service that is provided by HUD to insure that you understand all aspects of The Reverse Mortgage.
“No Doc,” Transactions up to 80% Loan to Value (No Income; No Reserves; No Income or Job required) ? Purchase; Cash Out; Rate/Term Transactions all Available ? Only Assets verified to close ? True Foreign Nationals Allowed ? No Maximum Financed Property Limits ? FICO down to 600
Before mortgage refinancing, you should run through the checklist below and answer each of the questions.
1. What are your goals?
2. Does refinancing make financial sense?
3. Can you afford closing costs and fees?
4. Have you determined what the payoff amount will be (including any prepayment penalties)?
5. Do you know what mortgage refinancing documents are needed to apply? Can you obtain them?