Denver FHA Loans

The FHA loan program is specifically designed to empower first-time homebuyers, making homeownership more accessible through less strict requirements and a more straightforward application process.

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Your Denver FHA Loan Options

Arnaiz Mortgage, a trusted lender serving the Denver area, offers various loan types for first-time homebuyers that make becoming a Denver homeowner more possible. We guide you through the FHA loan process, ensuring you understand the requirements and benefits.

Denver FHA Mortgage Process

Our experienced lenders are here for Denver residents every step of the way, from the initial application to the transfer of keys.

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Ready to find the Denver, Colorado, house of your dreams? Contact an Arnaiz Mortgage lender today to learn more about our loan programs and to receive a customized FHA quote.

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Denver FHA Loans: Making Homeownership Accessible

The Federal Housing Administration (FHA) home loan program, through the Department of Housing and Urban Development (HUD), was designed to make homeownership more accessible for younger and first-time buyers. Lower down payment and credit score requirements unlock homeownership for more Denver, Colorado, buyers.

Federal Housing Administration (FHA) Loan Requirements

Home buyers in Denver, Colorado, taking advantage of the FHA loan program will typically need to meet the following requirements:

  • Credit Score – A score of at least 580 is usually necessary to qualify for an FHA loan. However, Arnaiz Mortgage has programs that can help people with credit scores as low as 500.
  • Down Payment – The Colorado FHA loan program usually requires a minimum down payment of at least 3.5%. The program allows gift funds to be applied toward the down payment. A down payment of 10% required for scores below 580.
  • Income Verification – FHA borrowers in Colorado must show steady proof of income, which usually includes at least two years of consistent employment. Borrowers can use pay stubs, W-2s, and tax returns to prove income.
  • Mortgage Insurance – All FHA loans require an annual mortgage insurance premium (MIP) to protect the loan from borrower default.

In addition to these requirements, most Colorado FHA lenders also have rules regarding the type of property that can be purchased. All properties financed through the Colorado FHA loan program must undergo an appraisal and must be the borrower’s primary residence.

The Federal Housing Finance Agency also sets FHA loan limits, which are the maximum loan amount you can finance through the program. These limits vary depending on the state and county you plan to buy in. 

Currently, the FHA loan limit in most Colorado counties is $498,257. However, because the Denver, Colorado, housing market includes higher prices, the FHA loan limit here is set at $816,500 for a single-family home. Loan limits are $1,045,250 for a two-family home, $1,263,500 for a three-family home, and $1,570,200 for a four-family home.

Interested buyers can work with an Arnaiz Mortgage lender to determine if they meet Colorado FHA loan requirements. Colorado FHA loan eligibility requirements may also vary, depending on the lender. For example, some lenders may be willing to accept a larger down payment in return for lower credit scores.

FHA Loan Assistance Programs in Denver

FHA loans are designed to make homeownership more accessible to buyers. However, FHA loans still have down payment and closing costs, which can deter some buyers.

FHA loan assistance programs can help Denver buyers secure home loans. The City of Denver has a unique down payment assistance program, the metroDPA, which offers up to $15,000 in financial assistance toward down payment requirements. CHFA FirstStep and FirstStep Plus are additional programs through the Colorado Housing Assistance Corporation that help buyers meet the requirements of an FHA loan. These programs can significantly reduce the financial burden of buying a home.

Why Choose Arnaiz Mortgage for Your Denver FHA Mortgage Needs?

When financing your dream Denver, Colorado, mortgage, you must choose the right loan. Arnaiz Mortgage helps connect buyers to the best FHA loan programs, including those with lower interest rates and more competitive loan terms. From helping you explore payment assistance programs to assisting with the application process, our mortgage lenders are here for you every step of the way. The Arnaiz Mortgage lending team shares its expertise and client-first customer service to help you become a Denver, Colorado, homeowner.

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Frequently asked questions about Denver FHA Loans

  • How do I qualify for an FHA loan in Denver, CO?

    Qualifying for FHA home loans in Colorado requires proof of a steady income, a down payment of at least 3.5%, and a good credit score. Some lenders offer eligibility flexibility and may be more willing to accept a lower credit score or debt-to-income ratio. Contact an Arnaiz Mortgage lender today to get pre-approved.

  • What is the maximum FHA loan amount in Denver?

    Colorado FHA loan limits for single-family homes in the Denver, Aurora, and Lakewood regions are currently $816,500. Loan limits are higher for duplexes, triplexes, and four-plexes.

  • How much down payment is needed for an FHA loan in Denver?

    Denver FHA loans typically require a minimum 3.5% down payment. This down payment requirement is much less than standard conventional loans, which require up to 20%.

  • Are there any special FHA loan programs for first-time homebuyers in Denver?

    Yes, the CHFA FirstStep and FirstStep Plus programs assist buyers through the FHA loan program. The City of Denver also has an assistance program available.

  • What are the benefits of an FHA loan in Denver?

    FHA loans in Denver, Colorado, can make homeownership more accessible to a broader range of buyers. While Colorado FHA loans are designed for first-time buyers, even those who have yet to own more than three years prior may still qualify. Colorado FHA loans offer many benefits, including lower down payments, more flexible credit score requirements, and higher debt-to-income ratio requirements. A more competitive annual percentage rate (APR) may also be available with an FHA loan than when compared to a conventional loan.

  • How do FHA loan limits work in Denver?

    FHA loans make buying a home more of a reality for those in Denver, Colorado. The FHA loan program is backed by the Federal Government, which means lenders are more willing to offer financing to those with less-than-perfect credit or lower income thresholds. The backing of the Federal government can also mean better interest rates.

  • Can I get an FHA loan in Denver with bad credit?

    Some Denver lenders may be willing to accept credit scores that are less than perfect in return for a higher down payment or interest rate. A borrower’s credit score is heavily weighed into interest rates, so improving your score by even a few points can make a big difference.

  • How long does it take to get approved for an FHA loan in Denver?

    The approval process for an FHA can vary. The exact length depends on many factors, including the purchase price, the property’s condition, the borrower’s finances, and the financing lender. Here at Arnaiz Mortgage, we understand you’re excited and want to complete the process as quickly as possible. It takes about 24 hours to get pre-qualified. Once you’re under contract to purchase a house, it takes about 30 days to close.  

  • Are there any closing cost assistance programs for FHA loans in Denver?

    Closing cost assistance programs can help Colorado FHA borrowers meet the required closing costs more efficiently. The Colorado Housing Assistance Corporation (CHAC) offers first-time home buyers a down payment or closing cost assistance.

  • What properties are eligible for FHA loans in Denver?

    Getting approved for an FHA loan in Denver, Colorado, allows you to purchase a primary residence in habitable condition. An FHA mortgage does require borrowers to pay for an appraisal, and the loan amount cannot exceed the home’s value. Otherwise, an FHA loan can be used to purchase a multi-family unit if the borrower lives in one of the units full-time. FHA loans aren’t suitable for buying investment or vacation homes.