FHA Mortgage Lender Colorado

FHA Loans In Colorado

If you want to buy a house in Colorado, chances are you’ve heard of FHA loans. Perhaps a family member or a friend mentioned FHA loans, but you have no idea what the whole thing entails.

What is an FHA Home Loan?

FHA loans are mortgages insured by the Federal Housing Administration under the jurisdiction of the U.S. Department of Housing and Urban Development. They insure the loans against default, allowing FHA-approved lenders to offer favorable terms. The Federal Housing Administration doesn’t directly provide these loans. Private lenders offer them.

The Department of Housing and Urban Development (HUD) sets new loan ceilings for FHA loans in Colorado every year. Because the typical home price in the state went up for the year, these loan limits have gone up for 2023. They now range from $472,030 to $1,089,300, depending on the county where the property is located.

FHA Loan Requirements

There are specific guidelines that borrowers must meet to be eligible for an FHA-insured loan.

  • Credit

The minimum credit score to qualify for an FHA loan is 580. A score of 580 or higher allows the borrower to qualify for a 3.5% down payment. Borrowers with scores below 580 but at least 500 may still be eligible with a 10% down payment. Restrictions may apply to these loans, underwritten on a case-by-case basis.

  • Employment & Income 

FHA loans require a two-year verifiable work history. Only recent college graduates are exempted from this eligibility requirement.

No minimum nor maximum income requirement exists to qualify for an FHA loan. However, applicants must meet the debt-to-income (DTI) ratio requirement. FHA requires a front-end ratio of 36%. The front-end ratio is also known as the housing ratio. This formula determines what percentage of your gross monthly income will be spent on housing. Mortgage payments, property taxes, homeowners insurance, and HOA dues are all included.   

The back-end ratio examines how much of your monthly income is required to cover all of your debts. These debts include loans, credit cards, other monthly credit commitments, and the proposed monthly housing expense. FHA allows a back-end ratio of 43%. 

There are exceptions to these ratios if the borrower can show compensating factors, like larger down payments and adequate reserves.

  • Assets

Every borrower must show the lender two types of assets when they apply for an FHA loan. These are the money required for the down payment, closing costs, and prepaid items. As mentioned earlier, the down payment requirement on an FHA loan is 3.5% of the purchase price. These may come from the borrower’s own funds or as a gift from a family member, employer, or a charitable institution.

Mortgage reserves are assets, such as cash, that you can easily access if you need help meeting your mortgage payments. These assets are what you have left over after your down payment and closing costs. Although the down payment may come as a “gift,” the reserve must be your own funds. The typical reserve requirement is 1 – 3 months, depending on your credit scores.

Apply for an FHA Loan in Colorado

As a direct mortgage lender and servicer, Capital Home Mortgage offers a wide range of mortgage options to fit every need. The FHA Loan Specialists at Capital Home Mortgage will work with you to find the best loan terms for your needs and budget.

Apply online or call the office at (303) 226-1177 to get prequalified and preapproved for an FHA loan in Colorado.

FHA Home Loans Colorado

An FHA loan is a mortgage insured by the Federal Housing Administration, a branch of the United States Department of Housing and Urban Development (HUD). FHA loans are popular among first-time homebuyers because they make homeownership more accessible to low- to moderate-income families.  The FHA does not lend money directly; private lenders do so.

FHA Loan Basics

The following is a rundown of all you need to know about FHA loans in the state of Colorado:

     1. FHA Loan Limits

FHA loan limitations in Colorado vary by county and are decided by the cost of local housing. In 2023, the loan ceiling for a single-family home in most Colrado counties is $472,030. 

     2. FHA Eligibility Requirements

To be eligible for an FHA loan, borrowers in Alaska must have a credit score of at least 580 and a down payment of at least 3.5% of the purchase price. Applicants with credit scores between 500 and 579 may still qualify for an FHA loan, but a larger down payment of at least 10% is required, and certain restrictions will apply. Borrowers must also meet debt-to-income ratio standards and have a consistent source of income and employment.

     3. Benefits of FHA Loan

FHA loans provide various advantages to Alaskan borrowers, including:
  • Lower down payment: 

FHA loans have a lower down payment requirement than conventional loans, making it easier for first-time homeowners to buy a home.
  • Easier credit qualifying:

FHA loans are designed to be more accessible to individuals with less-than-perfect credit.
  • Lower closing costs

FHA loans contain restrictions on how much lenders can charge for closing fees, which can reduce the loan’s final cost.
  • Streamlined refinancing

Existing FHA borrowers can refinance with a streamlined process requiring minimal paperwork and documentation.

     4. How To Apply

Consumers must work with an FHA-approved lender to apply for an FHA loan in Colorado.  The lender will guide the applicant through the application process, which includes determining eligibility, collecting documentation, and completing the loan application. 

Apply For FHA Loan With Capital Home Mortgage

At Capital Home Mortgage, we are well aware of the difficulty that may be involved in the process of obtaining a mortgage. We are here to protect you from having to go through anything remotely similar to what others experienced.  To start the application process, please call our Colorado Loan Officers at (303) 226-1177.

FHA Home Loans Alaska 

A lender that has been approved by the Federal Housing Administration (FHA) may offer a loan that is guaranteed by FHA mortgage insurance. Lenders are safeguarded from losses through FHA mortgage insurance. They have in the past allowed Americans with lower incomes to borrow money and purchase homes that they otherwise would not have been able to.

FHA loans come with a number of advantages over conventional loans. They are a good option for people who would not be qualified for conventional loans because of their more lenient credit and income requirements. A smaller down payment is needed for FHA loans, usually 3.5% of the home’s cost. It might be simpler for first-time homebuyers to purchase homes.

FHA loans have larger debt-to-income ratios and less severe requirements for the types of residences that may be purchased. Lenders can relax knowing they will be paid if a borrower defaults on the loan because the Federal Housing Administration backs FHA loans.

What Is The Process For An FHA Loan?

To be eligible for an FHA loan, a potential homeowner must fulfill a number of standards.


To qualify for the 3.5% low down payment option, borrowers must have a credit score of at least 580. Being approved for an FHA loan is often one of the easier processes due to the low down payment needed and the less-than-perfect credit that is acceptable.

Candidates with FICO scores under 580 might still be qualified for an FHA loan, but they’ll need to put down a minimum of 10% and meet any other criteria that might be necessary.


In general, there are fewer conditions to meet in order to qualify for an FHA loan than there are for a conventional loan. The upper limits for debt to income are 31% and 43%. According to this, the housing payments should account for 31% of the gross monthly income, while the monthly loan payment should be 43% of the monthly income. However, these standards allow for higher ratios of up to 56.9% with compensatory variables.


An FHA loan requires a minimum 3.5% down payment as part of the collateral requirements. The borrower is also required to keep a minimum amount of reserves. These reserves typically consist of one month’s worth of principal, interest, taxes, insurance, and, if necessary, homeowners association dues. The reserves cannot be gifts, seller concessions, or lender credits; they must originate from the borrower’s own resources.

Assets must have been sourced or seasoned for 60 days in order to be considered. Unsourced cash deposits are not acceptable as a borrower’s asset.

It’s important to note that asset requirements will be expressed in terms of PITI (Principal, Interest, Taxes, and Insurance), which means you’ll need enough money to pay for a specific number of months’ worth of mortgage payments, including principal, interest, taxes, homeowners insurance, mortgage insurance, and HOA dues, if applicable.

Required Documents For An FHA Loan

Several supporting documents are needed after submitting a loan application. The following records, which may not be all of the following, are required by the lender:

Personal identification documents (such as a driver’s license, state-issued identification, a passport, etc.); a recent 30-day pay stub; and a social security card
W2s from the previous two years; bank statements from the last two months; most current account statement from a retirement plan; signed tax returns from the previous two years, if self-employed; and, if relevant, a divorce decree and child support orders.
Utilize Capital Home Mortgage to submit an FHA loan application.

We at Capital Home Mortgage are aware of how challenging it may be to obtain a mortgage. It is our responsibility to keep you from going through something similar. Call our Alaska Loan Officers at (907) 531-5048 to start your application.

Why Colorado HomeBuyers are Choosing Capital Home Mortgage

Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7  Day a Week Support Application to Final Payment

Colorado Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Colorado FHA Home Purchase Loans

FHA Purchase Mortgage Lender
  • Simple Qualifying
  • Smaller Down Payment
  • Seller Paid Closing Costs
  • Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Credit Scores Allowed
  • Manufactured Housing OK

Colorado FHA Refinance Home Loans

FHA Refinance Mortgage Loans

FHA Standard Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 80% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

FHA Streamline Refinance

  • FHA to FHA
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates

Colorado FHA Renovation Home Loans

FHA 203K Mortgage Loans

FHA 203K is a great option for makes cosmetic changes to an older home.  It allows a FHA buyer to update out of date cosmetics of a home as part of purchase or refinance.  Make that old home new with a Streamline 203K renovation.

  • Purchase & Refinance Options
  • Primary Residences Only
  • Single, Multi Family & Condo’s
  • As-Is Improved Renovated Value
  • 203K Streamline
  • Less < 35K, Cosmetic Repairs Only
  • 203K Full Rehab
  • Greater > 35K, No Restrictions
Colorado Mortgage Programs

Colorado Home Purchase

Thinking of Buying a Colorado Home?

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo, Non QM
  • Reverse, Renovation, Manufactured

Colorado renovation home loans

Looking to Rehab a Colorado Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan?  Purchase the Perfect Home and make it your own. Call today.

  • Remodel, Renovate or Repairs
  • FHA 203K Streamline or full
  • fannie mae homestyle reno
  • freddie mac home choice reno

Colorado FHA Home Loans

Great for 1st Time Colorado Homebuyers

FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.

  • Smaller Down Payment
  • Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Credit Scores OK

Colorado VA Home Loans

100% Financing for Colorado Veterans

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.

  • Simply Qualifying for Veterans
  • No Down Payments Requirements
  • Lower Credit Scores Accepted
  • Manual Underwriting Allowed

Colorado Conventional Home Loans

Flexibility for Colorado Homebuyers

Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a Loan Officer.

  • Primary, 2nd Home, Investment
  • Great Rates & Low Fees 
  • Single Family and Multi-Family
  • Renovation Loan Programs

Colorado Jumbo Home Loans

Colorado Non Conforming Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits.  Call today to speak to a loan officer.

  • Primary Residence and 2nd Homes
  • Higher Loan Amounts – 3 Million
  • Great Interest Rates
  • Investor Specific Guidelines

Colorado USDA Home Loans

100% Rural Colorado Home Loans

USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.

  • Rural Properties Only
  • Primary Residence Only
  • Geographic Restrictions
  • Income REstrictions

Colorado Native American Loans

Colorado HUD 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.

  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed

Colorado Manufactured Home Loans

Great Alternative Colorado Housing

Colorado reverse mortgages

Your Colorado Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.

  • primary residence only
  • simple qualifying – equity based
  • credit scores not applicable
  • Minimum age 62

Colorado Non QM Home Loans

Making Colorado Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.

  • Purchase, Rate and Term & Cash-out
  • Primary, Secondary and Investment
  • Full Doc & Bank Statements Programs
  • Corporations OK

Colorado One Time Close mortgages

Build Your Colorado Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.

  • Primary Residence Only
  • Close Once
  • Lock Rate at Contract
  • Traditional Final Mortgage

Colorado Refinance Mortgage Loans

Colorado Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.

  • Reduce Mortgage Term
  • Lower Monthly Payments
  • Appraisal Waivers
  • Streamline Options Available

Colorado Cash-out Home mortgages

Colorado Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.

  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Vacation or Education

Colorado Mortgage Team

Dale Gremillion

Sr Loan Officer
NMLS #210325

Conor Hayhurst

Branch Manager
NMLS #743506

Sam Klaburner

Sr Loan Officer
NMLS #140132

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