FHA Denver Home Loans

Posted by Angela Lanfranco

July 7, 2009

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.

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