Thank You: Ananda Lantaff, Sloan Holloway and Brian Crowder
Recently had the opportunity to get inside information for Boulder first time home buyer mortgages from three excellent sources. Brian Crowder, Ananda Lantaff and Sloan Holloway are three of the best and brightest mortgages bankers in the business. They shared insights on FHA and Conventional financing frequently used by Boulder first time home buyers.
Its My Birthday Too
Ananda Lantaff says, “some really good news for conventional loans is that the 5% down payment can now be a gift.” Suddenly, the best value in a home loan for a Boulder first time home buyer is a conventional loan. This is a change from prior to the Great Recession.
Actually, it doesn’t have to be anyone’s birthday to receive the down payment for a Boulder first time home buyer as a gift. According to Brian Crowder, “both FHA and conventional now allow for the down payment to be gifted.”
Should A Boulder First Time Home Buyer Go Conventional Or FHA?
All three mortgage bankers I interviewed agree: Conventional financing is ideal for the Boulder first time home buyer. The down payment requirement is only slighter higher than FHA. And the mortgage insurance is less expensive over the life of the loan with conventional financing. By comparison, FHA Mortgage Insurance now is charged over the entire life of the loan. And at a higher rate.
So Why Use An FHA Mortgage?
Down payment and credit ratings are the two biggest factors for the Boulder first time home buyer selecting an FHA mortgage. According to Sloan Holloway, “FHA is not a bad program, its just not as cool as it once was. It has a purpose in the market and has helped many people get into home ownership.”
FHA Is The New Sub Prime
Sub Prime refers to Boulder first time home buyers with credit scores below 700. Students seeking an ownership interest versus renting during college can benefit from an FHA mortgage. So can young adults establishing credit or home buyers with roughed up credit. Boulder first time home buyers want to be aware, the mortgage insurance is for the life of the FHA loan. Ananda adds, “That’s right, even when you get below the ‘magic’ 80% loan to value mark, your MI is still there.” And there is a higher upfront fee.
Additional Mortgage Options
Sloan points out, there are great programs out there for buying a home. USDA mortgages offer a zero down option similar to VA, but with no military service requirement. Chafa financing can offset your down payment. Boulder and several surrounding communities offer city-specific programs. All three mortgage bankers suggest asking plenty of questions. Don’t settle for a loan that feels uncomfortable.
Visit Mortgage Sites Now
Are you a Boulder first time home buyer? Now is the time to take action. Visit one or all three sites of the mortgage bankers I interviewed for this post:
Ready to start the buying a home process?