Colorado Home Loans
Conventional loans (conforming) -30 Year Fixed, 15 Year Fixed, 10/5/3 Year ARM (Adjustable Rate) Colorado home loans available.
- Advantages: No mortgage insurance option, more flexibility with job history, good interest rates and more options.
- Disadvantages: Rates not as low as FHA when LTV (Loan-to-Value) is high.
FHA loans are government-backed mortgage loans (www.fha.gov)
- Advantages: Low interest rates, high LTV, relatively high DTI (Debt to Income).
- Disadvantages: Mortgage insurance, less flexibility in job history, 417k loan limit in Colorado. >
VA loans are government-backed mortgage loans (www.benefits.va.gov/homeloans/)
- Advantages: 100% financing available, low interest rates.
- Disadvantages: Mortgage insurance. Some properties don’t qualify
Down payment Assistance Grant (More Info)
- Advantages: Qualifying borrowers may receive a down payment grant (non-repayable) of up to 3% they can use towards closing costs and the down payment of a home.
- Disadvantages: Income restrictions apply. May only be available in certain areas. Click here for more details.
Conventional Jumbo loan (non-conforming)
- Advantages: Loan limit may exceed 417k.
- Disadvantages: Rates are generally a little higher.
Secondary financing (2nd Loan or HELOC)
- Advantages: Piggyback a 2nd loan get a higher LTV. Use a HELOC (Home equity line of credit) to draw and return money when needed.
- Disadvantages: Higher interest rates. With a HELOC, the interest rate is variable and changes with the market.
USDA Rural Housing Association loan (RHS)
- Advantages: 100% financing for qualified properties. See if your property is qualified at: http://eligibility.sc.egov.usda.gov
- Disadvantages: Only certain properties qualify.
- Advantages: Financing available for new construction.
- Disadvantages: Shorter term loans with higher interest rates: 5-7 years generally
Reverse Mortgage Loan
- Advantages: Draw equity out of your property to provide income. A tax-savvy way to produce income without selling the home.
- Disadvantages: Equity in the home goes down. Only good in very specific circumstances.