Unique Attributes of Colorado FHA Mortgages
In addition to the basic eligibility guidelines outlined on the previous page (many of which are quite unique, in particular the credit guidelines, source of funds, and the ability for a co-borrower who doesn't live with the owner occupant - a "kiddie condo") here are a few additional items to consider:
Automated Underwriting (AU) and FHA: The big deal here is that expanded ratios (higher than the prescribed 29/41 debt-to-income ratios. The AU process and FHA doesn't end up being as flexible as the conventional analog, but the expanded ratios can make a big difference. As always, the automated underwriting process is very sensitive to credit profile and score, so the comments on the previous page are accurate, but they don't apply to a borrower who is hoping for expanded ratios.
FHA offers fifteen-year and thirty-year fixed-rate mortgage solutions, as well as a one year adjustable rate mortgage. The one year mortgage is unique because the caps are set at one percent annually, and five percent for the life of the loan (the one percent a year is unique). Unless the borrower is putting at least five percent down, the loan approval is based on an interest rate one percent above the actual note rate.
FHA offers special refinancing solutions.
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