FHA Loans

FHA home loans

FHA Home loans

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development. FHA loans are fixed rate mortgages and an attractive option for many home buyers, especially for first-time home buyers of low or moderate incomes. Generally, this loan program is a great option for individuals with poor credit.  FHA loans require a credit score of 580 and above.

Advantages include:

  • Generally easier to qualify for than conventional loans.
  • Have lower down payment requirements (generally 3%, which can come from gift money from a relative if needed).
  • Interest rates are usually lower than standard fixed rate loans.
  • Programs are available for single family or multi-family homes.
  • Government guaranteed by FHA.
  • Cannot exceed statutory rate limits.
  • The FHA 203k loan program is the primary program for handyman specials and fixer-uppers.

FHA loans limits for Colorado.