Grand Lake, Colorado Mortgage Programs
USDA Loan(The Best Loan)
A USDA loan is a zero down residential mortgage program intended for rural areas in the United States. The purpose of the program is to encourage home ownership in rural areas with lower populations. Grand Lake qualifies for USDA financing!
What are the benefits of a USDA loan?
• 100% No Money Down Home Loans. No need for down payment assistance or other grant programs.
• Very Competitive Interest Rates. More competitive than conventional loans.
• Low Monthly Mortgage Insurance Compared to FHA or other Conventional Loans.
• Fixed secured loans – 30 year or 15 year fixed rate loans.
Conventional Loan(2nd Best)
• Best suited for people with high credit scores and decent down payment(10%+)
• Avoid mortgage insurance with 20% down / No Upfront mortgage insurance
• Competitive rates but not as low as FHA or USDA
• No income limits but loan limits do apply.
• Minimum credit score 620+
FHA Loan(Last but not least)
• 3.5% Down Payment required
• More competitive mortgage rates compared to conventional loans
• No income restrictions – Unlike USDA, there are no restrictions on how much money you can make
• Minimum credit score of 580+
• Mandatory upfront and monthly mortgage insurance
Why choose us as your mortgage lender?
• Low Mortgage Rates. We have some of the most competitive mortgage rates in the State.
• Low Closing Costs. We do not charge origination or junk fees.
• We are able to help cover your closing costs. Closing costs can be covered by the seller but in some cases the seller will refuse. We have the ability to give you a lender credit to help pay for some or all your closing costs. This is done by giving you a lender credit in return for a slightly higher interest rate.
• Local Denver lender familiar with State guidelines and mortgage programs.
USDA vs FHA vs Conventional(Which is better)
- FHA requires 3.5% down payment / USDA does not require a down payment.
- Although FHA and USDA rates are very similar, USDA has much lower monthly and upfront mortgage insurance. That means your monthly payment will be lower and you will pay a smaller upfront government fee. On a $200,000 home purchase, your USDA payment would be about $50 less. You would also save about $1500 in upfront mortgage insurance fees which will lower your closing costs.
- USDA loans do not have any maximum loan amounts. FHA loan amounts are limited based on individual counties.
- FHA loans do not have limitations on location but USDA is limited to USDA eligible areas only.
- USDA are more difficult to qualify for regarding income and credit. For example, we can do an FHA loan with a 580+ credit score but USDA requires 620+.
- USDA mortgage do have household income restrictions. FHA loans have no income limits.
- Conventional loans might offer better terms if buyer has a high credit score and large down payment.