Eligibility Requirements

On the whole… to qualify for an FHA loan in Colorado, you must meet certain eligibility requirements.

Here’s what you want to consider:

1. Credit Score: Typically, FHA loans are more flexible regarding credit scores. To qualify for better terms a score of 580 is required. However, if you score between 500 and 579 you may still be eligible, so don’t give up hope. However, a larger down payment may be required.

2. Income Verification: In short, lenders will look at your income to see if you can afford the mortgage payments. Your total monthly housing expense should not go over 31% of your gross monthly income. And lenders also prefer that your total monthly debt obligations should not exceed 43% of your gross monthly income.

3. Employment History: Another key point… having a record of consistent employment is crucial for FHA loan approval. Lenders will review your employment history to determine your stability and ability to repay the loan.

4. Property Requirements: By and large… the property you intend to purchase must meet certain standards set by the FHA. These standards are in place for your safety and that your home is livable.

And now comes the best part…

Don’t worry if all of this sounds confusing.

Because it gets the best of us…

That’s why we’re here to help you make sense of everything and get you into your new home.

A Simple Guide to Applying for an FHA Loan in Colorado

In truth, the following steps can help put you on the road to owning your own home…

Step 1: Find an FHA-Approved Lender Like JFR Home Loans

For one thing, we can help you with your FHA Loan. To get a list of more lenders check on the Department of Housing and Urban Development’s websites. Choose a lender that suits your needs and desires.

Step 2: Gather Necessary Documents

To speed up your application process gather all the following documents. You’ll want proof of income, (like paystubs and your tax returns for 2 years), proof of residency, a copy of your driver’s license, and employment verification.

Step 3: Complete the Loan Application

Once you’ve gathered your documents, you can start an online loan application. Fill out all the required information accurately. After submitting the application, the lender will review your application.

Step 4: Wait for Approval

The approval process varies by lender but typically takes a few days. On the whole, during this time, the lender will verify your information to see if you qualify.

Moreover…

Let’s look at how you can get your new home…

General Information About FHA Loans:

Understanding FHA Loan Limits in Colorado

For 2023, the limit for a single-family home is between $472,030 to $1,089,300. The limit for the Denver metro area is $787,750. Each county is different so be sure and check the specific limit for your county.

Calculating Your Loan Amount

The loan amount will depend on several factors including the following:

• Your credit scores.
• Total income.
• And the price of the home you want to buy.

We can help you determine the maximum loan amount you qualify for your mortgage.

FHA Loan Repayment Terms

FHA loans are usually repaid with interest over 15 or 30 years. Your monthly payment includes a portion of the principal loan amount, interest, and mortgage insurance premium (if applicable).

Remember, applying for an FHA loan is a big step towards homeownership.

Another key point…

Before you sign anything…

Make sure you understand the entire process and terms.

Take your time and ask questions.

By careful preparation and planning, we can help you on your way to owning your dream home in Colorado!