FHA Loan

Financing Solutions for Your Colorado Home

5280Lend.com works with clients on FHA loans. Our expert team understands the process and requirements for mortgage loans.

As Colorado mortgage loan experts, we’ll thoroughly analyze your situation to determine if an FHA loan is the best fit for you. We offer personalized service for homebuyers in the Denver Metro area.

Contact us today to schedule a FREE mortgage assessment.

What Is an FHA Loan?

An FHA loan gives homebuyers an alternative to a conventional home loan. The Federal Housing Administration (FHA) insures FHA loans to support borrowers who do not qualify for a traditional mortgage.

FHA loans are a good option for many first-time homebuyers. The government-backed mortgage program requires a smaller down payment and a lower credit score than many other loan programs.

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How FHA Mortgages Work

FHA mortgages work similarly to conventional mortgages, where the borrower commits to pay monthly payments for the life of the loan. While the criteria to qualify for the loan is lower, the borrower must pay a mortgage insurance premium when the borrower has a down payment of less than 20%.

FHA loans come in 15-year or 30-year terms and have fixed interest rates. Unlike many conventional loans, there is no prepayment penalty.

The advantage of FHA loans is that they allow more people to purchase homes because obtaining approval for these loans is more flexible.

5280Lend.com has an in-depth understanding of the FHA loan process. We work with you each step of the way to ensure you understand the loan requirements and commitment.

An FHA loan gives homebuyers an alternative to a conventional home loan. The Federal Housing Administration (FHA) insures FHA loans to support borrowers who do not qualify for a traditional mortgage.

FHA loans are a good option for many first-time homebuyers. The government-backed mortgage program requires a smaller down payment and a lower credit score than many other loan programs.

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Advantages of FHA Loans

Lower Down Payment

You can pay as little as 3.5% down on an FHA loan. With reduced requirements, buying a house is much easier for homebuyers with low incomes or little savings.

No Prepay Penalty

There is no prepayment fee associated with FHA loans. If you decide to pay the loan in full before the end of the contract term, the lender will not penalize you by charging a prepayment fee.

Easier Approval

FHA loan approval requirements are less stringent than with conventional loans. Borrowers with lower incomes or credit scores may still gain approval.

Down Payment Assistance

Options include family gifts and state and county DPA (Down Payment Assistance) programs.

FHA loans open the door for many people who otherwise might not qualify for a mortgage to become homeowners.

What Are the Requirements for An FHA Loan?

  • A FICO score of 580 to 620 with 10 percent down, or a FICO score of 620 or higher with 3.5 percent down.
  • Must be able to verify employment for the last two years.
  • Must verify income with pay stubs, federal tax returns, and other related documents.
  • The loan can only finance a primary residence.
  • Must have the property appraised by an FHA-approved appraiser, and the property must meet HUD guidelines.
  • The monthly mortgage payment cannot exceed 31% of gross monthly income.
  • The monthly mortgage payment plus all monthly debt payments cannot exceed more than 43% of gross monthly income.

We will work with you to evaluate your eligibility requirements.

Contact 5280Lend.com to schedule a loan consultation.

Why Work with a Mortgage Bank for An FHA Loan?

Working with a mortgage banker gives you peace of mind. At 5280Lend.com, we are experts in FHA loans and other mortgage options. We will help you compare alternatives to determine the best lending solution to meet your needs.

We only work with a limited number of clients each month to ensure you receive personalized service. Also, we are a local Colorado lender, meaning we understand Colorado loan requirements.

Start today with a FREE mortgage assessment.

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FHA Loan FAQs

What Is the Difference Between an FHA Loan and a Conventional Loan?

The Federal Housing Administration backs FHA loans. The FHA insures mortgages against loss, which allows lenders more flexibility to offer loans with lower approval requirements.

Conventional loans are privately insured, meaning the risk is higher for the lender. Borrowers must meet more stringent standards for approval, including higher down payments and credit scores.

An FHA loan requires mortgage insurance. Borrowers must pay FHA mortgage insurance premiums as part of the loan requirement.

The mortgage insurance premiums include an upfront insurance premium, which can be rolled into the financed loan amount. Borrowers also owe an annual insurance premium divided over 12 monthly payments, which is part of your typical monthly mortgage payment.

While a wonderful alternative for many potential homeowners, FHA loans do have some drawbacks.

  • Borrowers must pay mortgage insurance premiums.
  • The property must meet specific criteria, including not exceeding a set price point (varies per county).
  • The buyer must live in the home as a primary residence.
  • Some sellers may select a different buyer for an easier closing process.

We are happy to work with you to determine the best type of home mortgage to pursue.

Contact us for a FREE mortgage assessment.

Choose a Mortgage Bank Specializing in FHA Loans

An FHA loan opens the door for many potential buyers to purchase a home with a lower down payment than required for other home loans. While FHA loans tend to be best for first-time home buyers, they also work for people who have owned a home before.

Many home buyers may qualify for and want to use FHA financing to buy or refinance their homes. FHA loans are a good option for many because of the numerous advantages, including a down payment requirement as low as 3.5%, a lower minimum credit score, and other benefits.

5280Lend.com helps clients in the Denver area finance their Colorado homes. We conduct a thorough analysis of your finances and goals to determine if an FHA loan is the best solution for you.

To start the process or learn more, fill out the contact form or call us to schedule a consultation.

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Ted Wedewer is extremely professional and kept us up to date during the whole process.  We had an easy and smooth transition from beginning to end.  I highly recommend Ted whether you are purchasing a home or refinancing one.  We won’t use anyone else!

Debbie C.