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FHA Loan Requirements

Closing Loans On Time, Under Budget With No Surprises®

FHA Loan Requirements

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes.

FHA MORTGAGE INSURANCE
FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages. The amount of mortgage insurance will vary based on the FHA loan type and down payment – equity.

FHA LOAN LIMITS
FHA lending limits vary based on a variety of housing types and the state and county in which the property is located. For a single unit home in Colorado they range from $271,050 in many non-metro counties to $729.750 in in the ski resort communities. Most Metro Denver counties the limit is $406,250. To find out the limits in the loan you are interested in call us at 720-943-4278 we will be glad to help.

LOAN CHECKLIST
Before you start the loan process, you’ll want to be prepared for the loan application. Have your information organized and ready for your loan officer.

CLOSING COSTS
Contrary to what you may have been told or promised many lenders have still under quote closing only to surprise you with a higher set of fees. While this bad business practice has been regulated, it is still possible for a lender under quote all 3rd party costs by as much as 10% and there is nothing you can do about it. At Hallmark your closing costs are guaranteed to be at or below the quote, at time you lock in or we will pay you the difference plus $500.00.

FHA DEBT RATIOS
In order to prevent homebuyers from getting into a home they cannot afford, FHA guidelines have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios.

FHA LOANS WITH CREDIT ISSUES
If you have had a bankruptcy it is still possible for you to qualify FHA Loan by maintaining good credit since the bankruptcy was discharges ,re-establishing new credit trade lines, and it has been 2 years since the bankruptcy was discharged.

In some special cases to get the new FHA loan in less than 2 years.

FHA Property Requirements

    • FHA loans are only available for those intending to occupy the property as their primary residence. FHA loans are not permitted for second homes – vacation homes or investments or business properties.
    • Most single family homes, townhomes, duplexs, tri-plexes, and 4-plexes are eligible for FHA financing.
    • All condominiums and many PUDs (planned unit developments) are required to be on the FHA “Approved Project List”.

 

Before you waste your time looking at and making offers on a condominium or PUD that is not an approved project a Hallmark mortgage specialist can tell you if a property is approved. Just call us at 720-943-4278.

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