Home Purchase Loans In Colorado

Capital Property Mortgage can assist you with your Colorado home purchase. Homebuyers can select the mortgage program that best fits their budget and financial responsibility because we offer diverse home loan options. We have professional mortgage consultants who can assist you in locating the optimal loan option.

Purchase Loan Programs In Colorado

• Conventional Loans

Conventional loans are mortgages offered by private lenders and are not insured nor guaranteed by the federal government. They are not part of any government program and are the country’s most prevalent home loan program. Borrowers with a reasonable down payment and credit scores should easily qualify for a conventional loan. 

Conventional loans require a minimum credit score of 620 and a DTI ratio of less than 43%. If a borrower cannot come up with 20% down, they must carry Private Mortgage Insurance or PMI.

• FHA Loans

FHA loans are mortgages insured by the Federal Housing Administration, a branch of the United States Department of Housing and Urban Development. They are the most lenient and straightforward home loans available. A borrower needs a credit score of 580 for a 3.5% down payment. The debt-to-income ratio on FHA loans may be as high as 50 – 55% with compensating factors. However, borrowers with scores between 500 – 579 may still be eligible for an FHA-insured loan if they put 10% down, and certain restrictions will apply.

Contrary to common belief, the Federal Housing Administration (FHA) doesn’t directly offer the loan. FHA-approved lenders offer and originate FHA loans; FHA insures the loan against default, eliminating the risk from lenders in the event of foreclosure.

• VA Loans

The U.S. Department of Veterans Affairs makes sure that veterans, service members, and their partners who qualify can get VA loans. They don’t require a down payment and have less strict credit score requirements than conventional mortgages.

The VA guarantees a portion of the loan, allowing lenders to offer 100% financing. Borrowers must have a valid Certificate of Eligibility (COE) and meet the lender’s requirements to qualify for a VA home loan.

• USDA Loans

USDA loans are guaranteed by the United States Department of Agriculture and are intended to assist low- to moderate-income rural borrowers in purchasing a home. It is the most challenging home loan program to qualify for due to its no-money-down nature.

To be eligible for a USDA-Guaranteed home loan, borrowers must meet the following requirements: (1) the household income must not exceed 115% of the median household income of the area where the property is located, (2) must use the property as a primary residence, (3) must be a US citizen or a qualified resident alien, (4) have a stable and dependable income, (5) have a credit score of 620, and (6) the property must be located in an eligible rural area as defined by the USDA.

• Jumbo Loans

Jumbo loans are a form of mortgage designed to finance the purchase of a home whose price exceeds the limits established by the Federal Housing Finance Agency. (FHFA). Because jumbo loans involve a more enormous and risky amount of money for lenders, their eligibility requirements are typically stricter than those for conventional loans. 

To qualify for a jumbo loan, borrowers must have a high credit score, typically 700. Some lenders require a FICO score of 740 or higher. Borrowers must have a low DTI ratio, preferably under 43%. They also need substantial reserves, typically 6 – 12 months’ monthly mortgage payments.

• Non-Qualified Mortgage Loans

Non-Qualified Mortgages, or Non-QM loans, are loan products that don’t follow the Consumer Financial Protection Bureau (CFPB) rules for Qualified Mortgages. Non-QM loans are made for people who can’t meet the strict standards of a Qualified Mortgage, like those who are self-employed or have a lot of debt compared to their income. 

In general, non-QM loans have less stringent requirements than conventional mortgages. Borrowers may be required to provide alternative documentation as proof of income, such as bank statements. It is best suited for self-employed individuals with high credit scores who cannot prove their income.

Apply for a Home Purchase Loan in Colorado

You have various options to apply for a home purchase loan in Colorado. Capital Home Mortgage is a direct mortgage lender. We are dedicated to providing exceptional customer service and would be delighted to serve you. Please contact one of our Home Loan Specialists at (303) 226-1177.