By Duane Duggan and Clare O’Callahan
On ROB Radio, host and RE/MAX of Boulder Broker Associate Duane Duggan interviews Ariel Solomon and Jessica Shanahan of Premier Lending regarding mortgage updates.
The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the U.S. and it is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created (fha.com).
On January 1 of this year, revisions were implemented to the FHA, lowering the cost of mortgage insurance on a monthly basis from 1.35% down to .85% in most cases. This significant half of a percent decrease off their mortgage,” according to Solomon, “will make it a lot more accessible and available for more borrowers to use FHA in the future.”
A borrower’s down payment requires a 3.5% minimum regardless of credit score, which is “one of the advantages of an FHA loan”, says Solomon, and this opportunity also allows borrowers to have a FICO score as low as 580. FHA rates are not credit score driven, therefore, even if you have a lower credit score, you still have the option of qualifying for an FHA loan.
CHFA, which stands for Colorado Housing and Finance Authority, is a down payment assistance program, which is a great option for buyers who have not quite saved up enough money for a down payment, but are still interested in buying a home. According to Jessica Shanahan of Premier Lending, “the FHA option that CHFA has will go in and cover 3% of your 3.5% down payment,” and that 3% then becomes a grant with no monthly payment. The grant does not require you to pay it back until you need to sell or refinance your home.
Today, FHA and CHFA loans have become a fluid process for qualified borrowers with the correct documentation.
About Premier Lending: At Premier Lending all underwriting and closing is done in-house, allowing for the greatest measure of control and communication throughout the process – from pre-qualifying to closing. Premier Lending also has access to the most competitive rates and program offerings on conventional, Jumbo, FHA, and VA mortgages.
For more information, visit: www.premierlends.com
To contact Jessica Shanahan call: (720) 833-7964