While the federal government may not do everything perfectly, it has always been unwavering in trying to make sure that every American has the best opportunity to own a home. As a result the Federal Housing Administration (FHA) may be the answer if you are a first time buyer, or just simply looking to refinance to a better repayment schedule.
In the Colorado Springs area there are numerous opportunities to find your dream home. By using an FHA loan from Fidelity Mortgage Solutions you can not only benefit from less stringent qualification requirements, but you also have a variety of options which can include fixed and floating interest rate options. Not only that, but this all comes with the security of a government issued loan.
The Federal Housing Administration was created in order to give the average American the chance of owning their own home, and was created within the U.S. Department of Housing and Urban Development. Popular with first time home buyers, the down payment for a home through FHA is only 3.5%, providing the person’s credit score is 580 or higher. This type of loan was created in response to the hasty decision homeowners made to foreclose their homes during the recession in the 1930s. Mortgage lenders provide adequate insurance, and this stimulated the availability of the housing market to those with sub-par credit or ability to offer a low down payment.
To get an FHA Loan, it’s alright if you have a less-than-perfect credit score. It’s important to check your credit score before you use an FHA Loan. If your credit score number is below 500, you’re deemed ineligible for this loan. However, the FHA will make an exception for applicants who have what’s called “nontraditional credit history or insufficient credit,” if they meet the other requirements.
With home prices so high in Denver, the Colorado Springs home-buying market has seen an increase in demand. The tighter list of homes for sale in metro Denver, plus Parker and Castle Rock, have caused buyers to turn to El Paso County to find an affordable home purchase. Although homeowners often have to navigate the I-25 commute, buyers feel the trade-off is worth it. The area prices of homes in the Denver 11-county area are over $100,000 more than the price of homes in the Colorado Springs area. Even though the metro-area population is approximately four times larger than that of Colorado Springs, the supply of Denver metro single-family homes is not increasing very rapidly.
Because FHA loans only require little money to put down, they are popular with home buyers. Also, if the home you decide to buy needs minor or major renovations, FHA 203k loans can help. A meeting with an FHA-approved lender and specifying the details for what exactly you want to have done will help you qualify for financial assistance for the renovations.
One of the reasons the FHA loan is still popular is that the qualifying criteria is not as strict as a traditional home loan. The a fixed-rate mortgage option provides a loan in which the interest rate will not increase during the time you have the mortgage. While the FHA aren’t the ones providing you the loan, they providing insurance for your loan. That insurance minimizes the risk to lenders when they loan you the money for your home purchase. Because of the lower qualification criteria, in addition to their fixed rate, FHA loans remain a popular financing option for home purchasing.
The team at Fidelity Mortgage Solutions are experts in FHA mortgages and can help you shop the best rates and products for your family. Just as you shop for the perfect home for your family, you should also partner with a mortgage broker who will shop the best finance options for you . Call Fidelity today 719-886-2752