The benefit of FHA loans is that they are generally easier to qualify for.
The qualification process is much less strict as compared to a conventional loan. For an FHA loan you are only required to pay a 3.5% down payment and have a credit score of at least 580. If your credit score is between 500 and 579 you can still be approved for an FHA loan if you pay a 10% down payment.
If you choose to use an FHA loan you will be required to pay MIPs or Mortgage Insurance Premiums. There are two Mortgage insurance premiums that you must pay. One MIP will be added onto your monthly mortgage payment, this MIP will be 1.75% of your loan amount. You will pay this MIP every month. The second MIP you will pay is an annual MIP payment based on the amount you put down, how big your loan is, and how long your loan term is. You will pay this once a year. If you put down 10% or more on your home the animal MIP charge will be removed after 11 years. If you put less than 10% down you will pay an annual MIP charge for the duration of your entire loan.
Information support and collaboration with our preferred lender John Gilfedder. Contact John at: (720) 285-9854 | john.gilfedder@elevationscu.com
