FHA Mortgage Colorado

Plum Creek Funding specializes in FHA Colorado mortgages.

The Federal Housing Administration (FHA) has several programs promoting home ownership. Usually, FHA loans are mortgages obtained with the help of the FHA. Buyers can purchase a home with a small down payment. FHA loans make it easier for people to qualify for a mortgage.

What are FHA Loans?

An FHA loan is a loan insured against default by the FHA. The FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans.

FHA Denver

Who Can Get an FHA Loan?

Most people can get an FHA loan. There are no income limits that may be found with first time home buyer programs. But there are limits on the amounts that can be borrowed. Generally speaking, you’re limited to relatively small mortgage loans relative to home prices in your area. To find the limits in your region, visit HUD’s Website.

To qualify for an FHA loan, you’ll need to have reasonable debt to income ratios and decent credit. Your debt to income ratio should be better than 29/41. You credit doesn’t need to be wonderful, but it needs to be good. FHA loans allow people to buy a home with a down payment as small as 3%. Other loans might not allow such a low down payment.