Where do I get a loan from?
Before you purchase your next house in Colorado Springs, it's best to understand your plan for financing your next property. The market can often move fast, to avoid losing the home of your dreams we suggest you contact a mortgage lender to provide you with a pre-qualification letter. That way, when you make your offer the listing agent and seller will know that you are cable and backed by a local and reliable lender in Colorado Springs.
What Kind of Loans are there?
An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). This type of loan requires a lower down payment and lower credit score. With the FHA loan the borrower only needs to put down 3.5% of the total home purchase. For example if the homes value was at $100,000 and qualified for the FHA loan they buyer (you) would have to put down 3.5%($3,500) at closing. This is only if you have a 580 score or higher.
This video is a great explanation of What a FHA loan is.
A conventional loan is a mortgage that is offered by private lenders and is not guaranteed or insured by a Government agency. Conventional loans are known as a conforming loan because they meet the criteria set by Fannie Mae and Freddie Mac. They are popular because they offer better rates and have less fees then a government backed loan like FHA or VA.
Here is a great video about Conventional Loans.