FHA Mortgages

FHA Mortgages:FHA Loans

FHA mortgage loans are issued by federally qualified lenders certified by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners because they are generally easier to qualify for than a conventional loan, they have lower down payment requirements and FHA loans allow the down payment to be a gift.

Here are some of the Unique Features of an FHA Mortgage

  • 96.50% LTV for a Home Purchase 
  • 97.75% LTV Home Refinance 
  • Loan limits set by county (Common 1 unit Limits below)
    • Boulder County $456,550
    • Larimer County $300,150
    • Weld County $322,000
    • Adams, Jefferson, Broomfield &Denver Counties $424,350
  • For Additional County and 2+Unit loan limits go to http://bit.ly/FHALoanLimits  
  • Allows for higher Debt-to-Income Ratios
  • Allows for 100% gift for down payment (With a 620+ FICO)
  • Mortgages available down to a 600 mid FICO score (<640 FICO may have some additional restrictions.)
  • No reserve requirements (May be a compensating factor)
  • No Appraisal program available for FHA to FHA Refinances
  • Non-Occupying Co-Borrowers allowed on 1 unit properties with a 640+ FICO score
  • Combining a 1st & 2nd mortgage/HELOC NOT CONSIDERED CASH-OUT if no money has been drawn off the 2nd mortgage/HELOC in last 12 months.
  • 36 Month Seasoning Required for past Foreclosure or short sale (Start from foreclosure sale date)
  • 24 Month Seasoning Required for a past Bankruptcy. (Start from discharge date) 

Reasons to consider an FHA Mortgage

  • Borrower has less than a 700 FICO score 
  • Borrower has a small down payment or down payment is a gift
  • Borrower has higher debt ratios  
  • Borrower needs a non-occupying co-borrower to qualify

Note: All government insured loans are for Owner Occupied 1-4 unit properties. 2nd home and investment properties may be eligible for one of the above loans if they currently have a government insured loan and the home was originally owner occupied.