FHA and VA Loans

Government loan programs have been created to help more people live the American Dream and own a home. Conventional loans are not always the easiest loans to qualify for. They can have down payments of 20%, many people don’t have that kind of money saved up, especially in this economy. That can be big hurdle when you are trying to buy a home in Colorado Springs. Conventional loans also have some pretty strict financial requirements, so if you don’t have perfect credit it can also be hard to qualify for. There are two major types of government insured loan program available for people living anywhere in Colorado Springs and the rest of the state. There is the FHA loan and the VA loan.
FHA, or Federal Housing Administration home loans, were created and insured by the Federal Housing Administration. This is a loan program that pretty much anyone can qualify for. The main limitation to remember is there is a loan limit. The loan limit for a home in Colorado Springs is $325,000. One of the biggest advantages of a FHA loan is that someone doesn’t need a huge down payment; FHA loans have a 3.5% down payment. That means if you were to purchase a property that cost $300,000 with a FHA loan you would only need $10,500 compared to a typical 20% down payment on a conventional loan which would be $60,000. Also closing costs tend to be less and the credit requirements are lower. You add this all together a FHA loan can make owning a home much more of a reality. If you are a 1st time home buyer that FHA can be the perfect loan for you. There is no need to rent when you can own, just let a FHA loan help.
VA, or Veteran Administration, home loans were created and insured by the Veterans Administration. They were created to help veterans and their families own homes easier. You have to qualify as active duty or veteran to qualify (to get more details on if you qualify click to visit the VA requirements page). The military plays big part in Colorado Springs, with both Army and Air Force, like Fort Carson, Peterson Air Force Base, Schriever Air Force Base, NORAD and Cheyenne Mountain Air Station. The biggest advantage by far of a VA loan is that you can own a home for NO MONEY down, that’s right you can own a home without making a down payment. In fact it’s the only loan available in city of Colorado Spring that has that those terms. The VA loan is considered one of the premier loan programs available, not just because you don’t have a down payment. They are also much easier to qualify for then any other loan program. In fact most people who qualify for a VA loan wouldn’t qualify for a conventional loan. If you’ve served or are serving our country you need to look into a VA loan. The only limitation is that there is a loan limit of $417,000 which is higher then an FHA loan.
Government loans are great alternatives to conventional loans. If you’ve looked into purchasing a home before but thought it was out of your reach, you might want to think again. Use our Purchase Assistant to tell us a little about yourself and we’ll get back to you to see if one of these government loans is right for you.

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