FHA 203K Denver Home Loans
Want a Fixer-Upper? The FHA 203k Can Help
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Want a Fixer-Upper? FHA 203k Denver Home Loans Can Help
When imaging their first, many Denver 1st time buyers imagine a setting that is all their own, not just another cookie-cutter home in the neighborhood. They want to be able to mold their home with their imagination while they ensure that all the standards are up to not only Denver building code, but to their own particular standards.
With the housing market being such a tough place to work these days, it can be difficult for homebuyers can have difficulty obtaining Denver home loans from a traditional lender. FHA 203k Denver Home Loans make it easier for Denver 1st time buyers to obtain the funding they need to turn the property that has caught their fancy into the home of their dreams. The FHA does not supply loans, but they do give lenders the backup they need to assure that they will be paid for their confidence.
There is no guarantee of a loan, even for FHA 203k Denver home loan applicants, but the process can be much easier for properties and applicants that meet the necessary criteria:
203k Denver Home Loan Criteria
• Eligible properties must be in need of rehab or repair.
• The current process is much easier than the older paperwork required for Denver homebuyers.
• The property must be an FHA approved condo development of 1-4 units.
• Down-payment equals 3.5% of the total amount borrowed.
Interesting Points
Luxury items are not eligible for FHA 203k Denver Home Loans.
Health and safety concerns must be addressed prior to any cosmetic work.
By allotting funds for property renovation, FHA 203k Denver Home Loans allow for improvements to existing neighborhoods, which helps to increase property values and improves a home’s ability to be sold. Especially in a stalled housing market, these improvements can help to propel an increase in sales.
Although they are not only for Denver 1st time buyers, the FHA 203k loan allows homebuyers to create the home of their dreams while they beautify their neighborhood. It’s a win-win for the housing market as a whole. Golden Lenders welcomes first time home buyers looking to get into an FHA 203k loan. Contact us today for a free consultation!
FHA Denver Home Loans
Look for 100% Financing on FHA Denver Home Loans
For first time Denver home buyers, finding a loan they can both qualify for and manage to pay is probably the most difficult aspect of buying their first home. In the current economy, lenders are significantly more cautious about lending their money to potential home buyers with little credit history, or a negative credit record. Even those with good credit looking to secure a Denver home loan can face difficulties based on the declined market or the current requirements for appraisals.
It Is Possible
The FHA has become the prevalent factor in securing loans for many Denver first time home buyers in the last year or two. For those buyers that are looking for no-money down options or 100% financing of their Denver home loan, the FHA offers several different possibilities.
How to Qualify for a 100% Financed FHA Denver Home Loan
Any applicant looking to secure a 100% Financed FHA Denver home loan must be regularly and gainfully employed for two years. Layoffs or downsizing are taken into consideration if this criterion is not met.
Credit history is researched for the last three years prior to the application. Denver FHA home loan applicants cannot have any more than 2 thirty days’ late payments during those two years.
Any bankruptcies on the credit history must have been discharged for at least two years.
Foreclosures must be at least three years old.
For those applicants with marred credit history, they must have been actively rebuilding it over time.
There will be a debt to income ratio calculated including credit cards, student loans, auto loans, etc. When the outstanding credit balance monthly payments are compared to the total monthly income, the ratio cannot reflect payments higher than 30% of the total income.
100% financing on FHA Denver home loans can make it possible for a first time Denver home buyer to purchase their home with no money down and a federally secured loan. By backing the lending institutions in the United States, the FHA is using tools like these to begin the renovations on our housing market.
Tax Credit
How Can the $8,000 Tax Credit Help First Time Denver Home Buyers?
The federal government has increased the proposed tax credit included in the stimulus plan from $7,500 to $8,000 and has concluded that, as long as our local Denver first time home buyers meet the necessary qualifications, the credit will not have to be paid back. This tax credit could have a huge impact on 1st time home buyers around the country and here in Denver, enhancing their ability to purchase their first home to help boost this sluggish housing market.
Key Points to be Aware Of:
The credit is only for first time homebuyers in the United States. If you are in the Denver area and have never owned a principal residence within three years prior to the date of purchase on your intended property, then you qualify for the tax credit. If you are married, the credit takes into consideration both parties to the purchase. If you haven’t owned a home in the last three years, but your spouse has, then neither of you qualify for the tax credit.
The total credit allotted ranges from 10% of the home purchase price up to $8,000.00. and is available any 1st time homebuyer home purchase made between January 1, 2009 and December 1, 2009.
Denver first time home buyers also need to be aware that the federal income limits for single people is $75,000 and $150,000 for married couples.
The stipulated income levels is expounded for Denver first time home buyers. The actual limits state that the modified adjusted gross income, MAGI, can cause the credit amount to be reduced. If an individual Denver first time home buyer makes more than $95,000, the credit is reduced to zero. The same goes for married Denver first time home buyers whose MAGI exceed $170,000 a year. The credit is reduced proportionally for anyone between those two limit caps.
There is obviously a need for this credit to help boost home purchases in the current market, but keep in mind the $8,000 tax credit for Denver first time home buyers needs to adhere to the above guidelines to be of use. Visit or give GoldenLenders a call today for more information.
Colorado Reverse Mortgage INFO
Colorado Seniors Seek Refuge under the Reverse Mortgage Umbrella
In the last few years, plummeting stock prices and home values have left many seniors seeking relief for their financial losses in reverse mortgages in Colorado. Attempting to manage their debts with their much reduced pensions simply isn’t possible for a lot of people over the age of 62. Despite having planned and saved for retirement during their working years, the last few years’ stock losses and plummeting home values has removed home equity loans from the table. They are ready to retire, but cannot afford to do so, without sacrificing a large chunk of their lifestyle.
Banks are being much more frugal about the money they lend, and even the best credit score may not mean that a home loan is possible. Values are still very low and that means that many homes do not meet the 85%-90% criteria for loan balance to value in order to secure a loan.
The only real options for many Denver area senior is the reverse mortgage, which are now backed by the FHA due to private banks’ reluctance to offer programs. Home Equity Conversion Mortgages guarantee that the banks will see their money at the end of the loan life and can help Colorado senior homeowners find the leverage they need to obtain a reverse mortgage on their home.
How It Works
Consider a senior citizen, living in Colorado, who is over 62 years old. They’re pension is severely diminished due to falling stock prices and they are being forced to retire by their employer, due to economic conditions. Our Colorado senior owes $87,000 on their home, and the home value is estimated at $318,000. By opting for a reverse mortgage on their home, they are able to wipe out the $87,000 debt and keep the remainder of the money in the form of a loan or a line of credit. They no longer owe a monthly mortgage payment for their home. They are able to use that extra loan money for their financial needs.
What’s the Catch
Congress has recently increased the maximum home value that seniors can borrow against to $625,500 from $417,000. The new bill also keeps mortgage origination fees at 2% on the first $200,000 and 1% on any amount over that, with fees not to exceed $6,000. Insurance premiums and closing costs still apply. No real concern here.
However, in the case of death or sale of a home for a senior citizen that has opted for a reverse mortgage on his Colorado home, things can get sticky. With home prices still very low and decreasing in some areas, the possibility of the home being worth less than the loan amount at the time of the sale ir possible.
Who Should Consider a Reverse Mortgage
Talk to a loan officer at GoldenLenders about a reverse mortgage in Denver Colorado: if you are a senior, over the age of 62, have significant equity in your home and no real means of savings available.
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From Denver RE Investor to CO RE Agent
Denver Real Estate Investors become Agents
The housing boom gave a lot of Denver real estate investors the hands-on training and competence of a savvy real estate agent. Having worked through the explosive boom and then bust phase of this market, many of these real estate investors earned their stripes to enter the ranks of the professional real estate agent set.
Formal Training
Many existing real estate agents are concerned that if the flood of real estate investors that flowed into the market over the past several years take on the training to make them a Colorado real estate agent, the already tight competition will get worse. In reality, many real estate investors are already competent real estate agents. It is for the handful of real estate investors that don’t hold a real estate licenses that many education sources exist.
Resources are not limited to existing real estate agents, and maintaining the integrity and training of anyone calling themselves a Colorado real estate agent can only help the perception of the whole. While some real estate investors can succeed without a real estate license, there viability to prospective clients will be enhanced if they do hold one.
Education Options
Any Denver real estate investor interested in pursuing formal training to obtain their real estate agent license can look to several sources within the real estate market. First and foremost, MLS.com offers real estate courses in pre-license, post-license, brokers’ pre-license and continuing education. These courses are available to real estate assistants at half the agent costs, and are available online. Each course is set to cover information covered in specific states’ license exams.
Real Estate Investment Association offers some continuing education training seminars for real estate agents that are specifically target real estate investors and how to assist them. The REIA is very supportive of the proposition of educating Denver real estate investors to help them become licensed, professional Colorado real estate agents. By leveraging their experience earned in the housing market, the expectation is emerging real estate agents with the know-how to deal with extreme market situations like we have faced over the last few years.
Going Forward
As the housing market continues its path to level all around the country, the need for more savvy real estate agents with “in the trenches” skills is palpable. The experience of successful real estate investing in the Colorado market has given Denver real estate investors a leg up in becoming skilled, licensed Colorado real estate agents.
