A Loan Option For Those Who Think They Cannot Buy A Home in Denver’s Market!

The Denver housing market is blowing up, as we’ve previously discussed. People are flocking to Denver which, in turn, has cranked up housing prices. Many people think they cannot afford to buy a home in Denver anymore. We have previously talked about the different alternatives and resources available for those who maybe be thinking about buying, but not sure they can afford it. Additionally, there are so many loan options when it comes to buying a home, it can be difficult to know what they are all and which one is best for you. Today, we are diving specifically into one type of loan, the FHA loan, which can allow those who think they are not able to purchase a home, a chance to do so. We sat down with Kristy Noll, an underwriter with The Mortgage Company, who has been underwriting for over 20 years and has ample experience in FHA loans. You can listen to the entire podcast above, or read a summary of it below.

FHA stands for the Federal Housing Administration, also known as the Department of Housing and Urban Development (HUD). This means that the lenders are insured by the Federal Housing Administration, a government entity, in case of foreclosure or defaults. There are other government-insured loans available on the market, but this one is specific to the FHA, and it is the loan that we are going to be specifically looking at today.

Misconceptions of the FHA Loan

Many people have the misconception that the FHA loan is only available for first-time home buyers. This is false.

While the FHA loan is a great resource for first-time home buyers, it is not exclusive to them. Anyone looking to buy a home can use the FHA loan, even if they have other properties such as rental properties.  However, the FHA loan must be used on a primary residence, meaning you must plan to live at the home where you are using the FHA loan.

Another misconception of the FHA loan comes from market resistance to the loan. Many real estate agents and sellers will pushback on FHA loans because they think they are higher risk. People are often aware of the lower FICO credit score or high debt to income ratios, and therefore think they should choose a safer buyer. However, there are many reasons why people choose the FHA loan, and if they have a pre-approval loan, they are just as safe as those with a conventional loan.

The FHA loan is a great option for those that think they might not be able to afford a home in the growing Denver market. It grants opportunities to many people who may not have been able to get a home in the past. Next week, we will dive into all the advantages and disadvantages of the FHA loan.


Kristy Noll

DE Underwriter









Cheri Landin


NMLS #68929