Denver Fresh

Buckle your seatbelt and grab somebody who has been down this road before because it just got a lot more difficult to buy an attached dwelling in Denver.

Loans on condos in Denver have fallen under stricter guidelines and mortgage insurance companies have set a maximum loan-to-value ratio of 90% on conventional loans.  If are are considering buying a loft or condo with a conventional loan then be prepared to bring at least a 10% down payment to close and that’s not including the closing costs.

FHA approved condos can still get 97% loan-to-value which is a minimum 3% down payment.  The key to using FHA financing is a condo development must be FHA approved.  In recent years the majority or buyers have financed with conventional loans and now FHA loans are looking to be a better option for many.

The newer condo projects may have never applied for FHA approval so it’s important to have your lender involved in your transaction as soon as possible.   If you are looking to purchase in condo using an FHA loan make sure that your agent and your lender are verifying that the condos you are viewing are FHA approved.  Nothing like falling in love with something you just can’t get!