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Some first-time home buyers in the Fort Collins area may think homeownership is out of reach because of the down payment requirements. That isn’t always the case though thanks to specialty loan programs such as FHA Loans.

This is a loan program created specifically for first-time home buyers that comes equipped with less strict qualifying requirements when compared to some of the other loan programs, as well as the ability to put forth a lower down payment.

This is possible through the Federal Housing Administration, which ensures these loans. FHA Loans can either be obtained through an adjustable- or fixed-rate mortgage.


What lenders are looking for when qualifying you for an FHA Loan is your debt-to-income ratio (which should not be larger than 43 percent), a credit score of 580 or higher, generally speaking, and a minimum down payment of 3.5 percent*. Another requirement if you have less than 20 percent to put down is mortgage insurance, which is a monthly fee added on to your mortgage payment.

It is important to know that there are max mortgage limits set for FHA Loans and those maximums vary by county and state. This means that with 3.5 percent down, you will have a maximum amount that you can borrow through an FHA Loan program.

At Element Mortgage, we understand the home loan process and purchasing real estate can be both exciting and a little overwhelming, especially to those who have never gone through it before. Rest assured that we will educate you and help guide you through the process with transparency so the process is as seamless as possible for you and your family.

If you have any questions about FHA Loans or the home loan process in general, contact us today!

*Qualifying factors may apply. Example FHA: Loan amount $300,000, 3.5% down, monthly payment without taxes and insurance $1,501.74, APR 5.395%, FHA monthly MI is $211.00. for Colorado trigger term (3.5%).

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