You've probably read all of the headlines over the last two years about the wave of foreclosures sweeping across Colorado as well as the rest of the country. You know that housing prices are at their lowest in years; there's also the federal first time home buyer's credit which is set to expire soon. It certainly looks like a great time to buy a home at a great price - but as you also know, it's pretty difficult to get a Denver home mortgage at a good interest rate from almost any Colorado mortgage lender, if you can get any kind of home loan at all.
Banks are tightening the purse strings and even if your credit is nearly spotless, it's no guarantee that you'll be approved for a mortgage right now. If you are approved, you may find that all you're offered are loans at interest rates far higher than you would have been offered only a year or two ago. Isn't there a better deal available from any Colorado mortgage lender?
As a matter of fact, there is: it's just a matter of choosing the right lender for your Denver home mortgage. A lender who is approved by the Federal Housing Administration to provide FHA loans could be your ticket to home ownership; and as you'll find, there are a number of advantages to working with a FHA lender which make it an excellent choice for financing the purchase of a home, even if you are able to secure a traditional mortgage from your bank.
FHA loans are federally insured. This has two benefits for the buyer: you won't have to pay for a separate mortgage insurance plan, since this loan is backed by the federal government. This kind of guarantee makes lenders feel much safer about offering loans to home buyers, meaning that the interest rates for these loans are often lower than you would be able to obtain otherwise.
Better still, there are no prepayment penalties associated with FHA loans, so your Colorado mortgage lender won't assess fees if you manage to pay off your Denver home mortgage a little earlier than planned. Unlike many home loans, a FHA loan actually rewards, rather than punishes financial responsibility; something which a lot of home buyers find a breath of fresh air indeed.
If you thought you couldn't buy your own home, it may be time to rethink that position. With the help of an experienced Colorado mortgage lender who can help walk you through the FHA home loan process, you could own your own home with a down payment of as little as 3.5%, even if your credit history is somewhat less than perfect. Even if you've been unable to get approval from another Colorado mortgage lender, a FHA loan may be able to get you the Denver home mortgage you and your family need to finally stop renting and start enjoying the benefits of home ownership.
Why you must stop renting
