FHA Loans

What are FHA Loans?

Federal Housing Administration (FHA) loans were designed to help anyone purchase their first home. The FHA works with private lenders to insure the loans they make, which helps to lower the costs of mortgage loans for buyers.

FHA loans make getting in to your first home achievable. Even if you aren't ready to buy yet, schedule a consultation and we can help take control of your path to homeownership.

What to Expect

We can walk any first time home buyer through the steps of loan application. Our expert team can provide you with recommendations each step of the way, so that you know you are getting the best deal. We give you and your family as many opportunities as possible to afford the perfect home.

At Diversified Lending, we help you buy the home where you will make memories with your family.

How it Works

Step 1: Get Organized
Get organized before you start the process. You will need:

Proof of Income

  • Salaried employee: Last 2 months of pay stubs and last two years of W2’s.
  • Self employed: Tax returns for the last 2 years and return and loss statements.
  • Bank statements for the last 3 months
  • Retirement account information (401ks, IRAs, etc.)

You may need other information, such as:

  • If you own rental properties, you will need the rental agreements and tax returns for the last 2 years.
  • If applicable, divorce decree or settlement agreement
  • If not a U.S. citizen: A copy of green card front and back.
Step 2: Get Pre-Qualified
We help you get pre-qualified. This can be done over the phone or online. This helps you in your home purchase process to:
  • shop for a home within your approval budget
  • improve your negotiating stance as a serious buyer
  • identify appropriate loan options for your situation

At this stage, we pull your credit to get a complete view of your lending picture.

Step 3: Loan Matching
We search for the loan programs and rates that fit your situation. Because we work as a brokerage, we can choose from a variety of different lenders. We find the particular loan that works best for your situation. We look at:
  • How long you plan to be in the home
  • Whether to pay extra for points at close to obtain a better rate
  • Loan program options
  • Downpayment assistance
Step 4: Pre-Approval
Once we find the right match, we'll apply for loan pre-approval. For this you will need:
  • your social security number
  • documents from step one
  • your signature
Step 5: Clearing Lender Conditions
Before you can close, you must demonstrate that you can clear the conditions of your pre-approval. Here's what to expect:
  • While we do our best to minimize what’s being asked, there may be some paperwork that seems redundant or unimportant. Regardless, the lender will still need this so be prepared for additional requests.
  • When requests come through, always respond with information as soon as possible. Delays in paperwork extend the process and may delay your close date.
  • It’s very common to have an additional, unexpected hurdle or pieces of information needed here. This is the point where the lender is examining your situation in detail and they may find additional information they need. We work with you to overcome any roadblocks.
Step 6: Loan Closing
This is where we will finalize and sign loan documents. You will need:
  • Cashier’s check for any down payment or closing costs
  • Your driver’s license to verify your identity
  • Review and sign final documents

Frequently Asked Questions & Answers

Have a look at frequently asked questions & answers to understand more.
FHA loans can be a good option for first-time homebuyers, or buyers who haven't owned a home in more than 6 years. They don't require as much down payment as conventional loans do, and can have low mortgage and interest rates.
The main disadvantage to FHA loans is that you will pay Private Mortgage Insurance (PMI). PMI on your loan means that you will pay additional costs on your loan to insure your lender against default. Depending on your loan, you may not be eligible to discontinue PMI without refinancing.
Your downpayment requirement will depend on your credit score with an FHA loan. You can expect a downpayment requiment of:
* 3.5% for credit scores 580 and above
* 10% for credit scores below 580
We work with several area programs to help buyers find downpayment assistance for their home loan. Our downpayment assistance programs are:
* Colorado Housing Association Corporation (CHAC)
* Colorado Housing and Finance Authority (CHFA)
You may want to consider refinancing your FHA loan once your loan-to-value percentage is high enough to remove your mortgage insurance premium. Let us help you understand the right time to make a switch to a conventional or other FHA loan option.

Why They Choose Us

Learn More

At Diversified Lending, we're here to ensure that you have the best information to make a decision for your future. Whether you are ready to buy today, or just looking to get started on the process and plan for the future, we're here to help you get started with the mortgage loan tools and programs to get you in your new home.

Get the process started today!

You can own your own home for less than the cost of your current rent payment.