FHA Loan Facts

FHA loans are becoming popular again and I’ve had a lot of questions about them, so hopefully here are some answers for you:

1. FHA doesn’t actually loan money, it just insures the loan making it a little less risky for the lenders to lend their money.

2. You do NOT need to be a first time home buyer to qualify for an FHA loan.

3. There are no income limits on an FHA loan, nearly any one is welcome to try and qualify, it’s just that they’re more typically accessed by those with credit score issues or first time buyers, which is why they’re often mistaken for an income limit loan or first time buyer loan.

4. The loan limit for Broomfield County is $368,000.

5. There is no guarantee that you will qualify for an FHA loan, but it can be easier to qualify for one than it is for a traditional loan.

6. If you are 2-3 years out of a bankruptcy you might qualify for an FHA loan if you have been paying your bills on time during that period.

7. If you are 2-3 years out of a foreclosure you might qualify for an FHA loan if you have been paying your bills on time during that period.

8. Interest rates are competitive with current market terms.

9. If you require mortgage insurance it’s folded into the loan rather than being paid up front out of pocket.

10. FHA allows a higher debt to income ratio than a traditional mortgage generally does.

11. FHA only requires a 3.5% down payment.

photo credit: woodleywonderworks

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