Doctor Loan

Loan Overview:

Has heavy loan dept been a barrier to purchasing a home in the past? You aren’t alone. Student loan dept is cited as being one of the most challenging struggles to people from the ages of 25-34 entering into a house of their own. For those coming out of medical school Colorado Mortgage Group is offering a loan program to help.  This mortgage program has been created to help meet the needs of doctors just getting started on their career. Physician loans make qualifying easier, lower down-payments, and flexible insurance options.  One borrower must have a medical license. Eligible borrowers with student loan debt that is in deferment for 12 months beyond the Note Date are not required to include the deferred debt in the debt-to-income (DTI) ratio calculation.

Loan Amounts

Maximum: $850,000

Minimum: $20,000

Eligible Borrowers

At least one borrowers must hold one of the following valid license type and have student loans currently deferred for 12 months or more:

  • Medical Doctor (MD)Doctor photo
  • Medical Resident (Educational License)
  • Doctor of Dental Science (DDS)
  • Doctor of Dental Medicine or Surgeon (DMD)
  • Doctor of Optometry (OD)
  • Doctor of Ophthalmology (MD)
  • Doctor of Pediatric Medicine (DPM)
  • Doctor of Osteopathy (DO)

Ineligible Borrowers

  • Non-residential aliens
  • Non-permanent resident aliens
  • All trusts
  • Land trusts, except for Illinois Land Trust
  • Non-occupant co-borrowers
  • Limited Partnerships, general partners or corporations
  • Non-arms-length transactions

Eligible Property Types

  • 1-unit properties
  • Fannie Mae warrantable condominiums
  • Planned unit developments (PUDs)
  • Modular homes

To qualify you must have a minimum credit score of  700.  Colorado Mortgage Group is currently offering 5/1 adjustable rate at a term of 30 years and a 7/1 adjustable rate at a term of 30 years.  To see if you qualify or for additional assistance please call us at (303)-444-5251 or email at

My Community Mortgage Program by Fannie Mae

What is A My Community Mortgage?

Has a down payment been a stumbling block to advancing your goals of purchasing a home, Fannie Mae may have the loan program for you. The My Community program was created by Fannie Mae with the intent to provide low rates, minimal risk-based price adjustments, and reduced mortgage insurance costs to home buyer who meet certain requirements.   Homebuyers can purchase a house under Fannie Mae’s My Community Mortgage product with a 3% down payment if at least one co-borrower is a first-time buyer.


Low Rates Risk Based Price Adjustments

The program has a no loan-level-price adjustments.  These on a conventional loan could lead to the borrower paying more due to the higher risk associated for the lender, however this is not the case with the My Community Mortgage program. A few LLPAs to consider are the following:

  • FICO score, the good news is whether you have a 620 or 800 score, those who get approved get the same interest rate pricing.
  • Property type- Fannie Mae will increase the cost of loan if the property is labeled as higher risk. Properties that are commonly high risk are condominiums, duplexes, triplexes, or fourplexes.
  • Down payment, on a conventional loan Fannie Maw will adjust pricing based on the size of your down payment. For example if you have the ability to pay a larger down payment then the outcome would result in better pricing.  With the My Community Mortgage you have access to the same rate regardless of your down payment.
  • Subordinate Financing or Second Mortgages, this program does not have any additional charges is there’s a second mortgage.

Affordable Mortgage Insurance 

A positive attribute of this loan program is that is has reduced mortgage insurance costs.  On a traditional loan the insurance cost is determined by many factors, “coverage” requirements is one of those factors.  With a My Community Mortgage, the coverage requirement from the lender is noticeably less, making way for a cheaper mortgage insurance costs. Listed below is a table comparing coverage for a traditional loan vs a My Community Mortgage.

Down Payment 15-19.99% down 10%-14.99% down 5%-9.99% down Less than 5% down
PMI Coverage Amount for a regular Conventional Loan 12% PMI Coverage 25% PMI Coverage 30% PMI Coverage 35% PMI Coverage
PMI Coverage Amount for a My Community Mortgage 6% PMI Coverage 12% PMI Coverage 16% PMI Coverage 18% PMI Coverage

Reduced Down Payments 

One of the biggest draws of this program is the down payment requirements.  This programs allows Down Payment Assistance to assist in a down payment that can provide as little as zero down on a new property.  Now that conventional 3% down loans are a reality, buyers have a real alternative to FHA. While the FHA loan has its benefits, it comes with high upfront fees and permanent mortgage insurance.  Three percent down loans with the following characteristics will be considered for approval:

  • The mortgage is a fixed rate loan.
  • The property is one-unit single family home, co-op, PUD, or condo.
  • At least one buyer has not owned a home in the last three years.
  • The property will be the owner’s primary residence.
  • The loan amount is at or below $417,000

For those wishing to use a first time homebuyer program, there are several options.  Both FHA and the Fannie Mae My Community Mortgage are some of the best options available.  If you wish to know more information or take action on determining your eligibility, we would love to help.  Please feel free to email or contact us at (303) 444-5251.


FHA Condominium Project Approval

FHA Guideline Update:

Thought about purchasing a condominium in the past? FHA has just announced that is will be changing its rules to make it easier for buyers to get federally insured financing.  This is good news because traditionally condos have been a great way for first time home owners to step into a house.  Under new FHA guidelines second homes are no longer considered “investment property” for determining the owner-occupancy ratio of a condominium project.  Looking back before the change if someone had owned a unit in a condo project, and used the unit as a second home, that unit doesn’t count as part of the project’s 50-percent owner-occupancy threshold, which is required by FHA.  This meant that if someone wanted to own a unit in that project and fewer than half the units where owner occupied the borrower couldn’t get FHA-backed financing.

Today the FHA has widened its guidelines.  Below are the new guidelines provided by FHA:

The procedure for calculating the required owner-occupancy percentage is modified to allow units that are not investor-owned to be considered owner occupied for the purpose of Condominium Project approval. For the purpose of Condominium Project approval, a unit is considered to be investor-owned if the unit is:

• Tenant Occupied;

• Vacant and listed for rent;

• Existing (previously occupied), vacant and listed for sale; or

• Under contract to a purchaser that does not intend to occupy the unit as a Principal Residence or Secondary Residence. The term Principal Residence and Secondary Residence have the same meaning as defined in Handbook 4000.1.

For purposes of calculating the owner-occupancy percentage:

• on multi-phased projects, the owner-occupancy percentage is calculated on the total number of units in the first declared phase and cumulatively on subsequent phases; or

• for single-phase condominium project approval requests, all units are used in the denominator when calculating the required owneroccupancy percentage.

Streamline Condominium Re-certification:

FHA-approved condominium projects require re-certification after two years to ensure that the project is still in compliance with FHA’s eligibility requirements and that no conditions currently exist which would present an unacceptable risk to FHA.  For existing condominium projects seeking re-certification, FHA will now only require applicants to submit documents reflecting any substantive changes since the project’s prior approval.


For any questions or to take steps to get into a new condo. please call (303) 444-5251 or email us at

USDA Single Family Guaranteed Loan Program

What is This Program?

This program has been created to help approved lenders in providing low and moderate income households the possibility to own adequate, modest, safe, and clean houses as their primary residence in eligible rural areas. This program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural home buyers. Sometimes called a “Rural Housing Loan” or a “Section 502” loan, there are a number of exurban and suburban neighborhoods nationwide in which USDA can be used. You may be surprised to know that a large number of Colorado counties have properties that fit the USDA’s requirements, including areas near Aurora, Denver, Boulder, Colorado Springs and Greeley. Has coming up with a down payment been a problem in the past and kept you from purchasing a house fret no more?


Who may be Eligible for this Program. rural housing photo

  • Meet Income-Eligibility. Find out at
  • Find out if your dream home is in an eligible area
  • Agree to personally be occupying the residence as your primary residence.
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have a legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner.
  • Purchase a property that meets all program criteria

Benefits at a Glance:

  • No down payments
  • Competitive
  • 100% Financing
  • Eligibility requirements cater to low to average income borrowers

More Key Information:

  • No down payments, once qualified you have the option to pay nothing out of pocket for a down payment.
  • Flexible credit guidelines.  You are still required to submit your credit report, but the USDA is far more lenient in what is considered to be acceptable.
  • No maximum purchase price.  NO, there is no limit on the purchase price as long as the lender determines you are able to make the payments.
  • 100% Financing.  In case “no down payment” hasn’t given it away, the U.S. government will finance 100% percent of your home once you are deemed eligible.
  • Many property types included.  If your home is new, previously owned, modular, planned unit development, a condo, or a manufactured… it is eligible.

Tis the Season

As the dust of Halloween quickly begins to fade, and the remnants of candy wrappers litter the hallways a new season begins to emerge.  That’s right the holiday season has officially begun.  While ears aren’t ringing with the sounds of cheery music yet, holiday lights have crept up, and Thanksgiving recipe prep has arrived.  Reflecting on the year as been fun, and as we move forward thinking about the company we wish to be our hearts and dreams have been stirred. Colorado Mortgage group LLC is committed to the communities we serve.  As this is the season of giving, we have decided to serve this year through an annual donation to a local non-profit organization. This year November 2015 we are donating 1% of our profits to Urban Peak.

Founded in 1988, Urban Peak is a Denver non-profit organization that focuses on youth ages 15 through 24 experiencing homelessness or at imminent risk of becoming homeless. Their goal is to help these youth overcome real life challenges and become self-sufficient adults. They believe that best way to accomplish that in Denver, Colorado is by providing five essential services a little or no cost to the youth.  Those services are, an overnight shelter, a daytime drop in center, street outreach, education and employment programming, and supportive housing. If you are interested in getting involved there are numerous ways you can help support youth who are experiencing homelessness in our community. Urban Peak is a non-profit 501(c)(3) organization that relies on the support of generous individuals and companies to help youth find a life off of the streets and become self-sufficient adults. Go to for more information.

We hope you enjoy the beginning of your holiday season, and get to spend it with the people you love.


From us at;


Colorado Mortgage Group

Colorado photo



New Mortgage Guidelines Starting October 3, 2015

 New Mortgage Rules Aim To Simplify Information But May Slow Down The Process

As of October 3rd, the TILA-RESPA Integrated Disclosure Rule (TRID) will require lenders to provide potential borrowers with more detailed rate and fee information. This process will also give borrowers more time to review documents before closing.

When you think about buying a house, many questions may come to mind. Having the necessary information to make informed educated decisions is an important step in the mortgage loan process. Starting on October 3rd, 2015, new guidelines and regulations will aim to provide more details.  Mortgage rates and fee quote documents are a few of those details. What does this new regulation mean looking forward, and for those looking to get started in the journey of purchasing a home?

Guideline Background:

There are two regulations that are designed to protect borrowers from fee abuses currently:

  • The Truth In Lending Act (known as TILA or Regulation Z) established in 1968. This act protects borrowers from unforeseen closing cost abuses. The way in which it does this is by creating standards for the way mortgage fees and terms are calculated and communicated.
  • The Real Estate Settlement Procedures Act (known as RESPA or Regulation X) created in 1974.  This act aims to protect borrowers from false inflated real estate transaction costs.

As of October 3, 2015, the CFPB (Consumer Financial Protection Bureau) will bring together the two regulations mandated under TILA and RESPA into a simpler form. This is called the  TILA-RESPA Integrated Disclosure Rule, or commonly known as TRID.

With these new disclosures, the process might be slower-especially as lenders get used to the new rules.

Looking to the Future: 

Here is What Happens Prior to October 3rd:

  • Within three days of you applying for a home purchase loan, the lender must send you a Good Faith Estimate and an Initial Truth In Lending disclosure, these will show your quoted rate, sum of fees, terms and costs over the life of the loan.
  • Before closing (even if it’s the day of closing, which it often is), the lender will send you a HUD-1, which is a breakdown of all fees for the transaction, and a final Truth In Lending disclosure this will allow you to see if there have been any differences from the beginning.

Today’s process has been deemed too confusing and complicated by the CFPB.  The first time a borrower sees a HUD-1 which contains a formal breakdown of all the fees is at the closing table.  By that point it may be too late to make changes the borrower may see in their favor. In light of this information under the new TRID rules all new applications after October 3 will receive two disclosures.  One will be at the beginning and one will be at the end.

  • Within three days of you applying for a home purchase loan, the lender must sent you a Loan Estimate Form, which provides a detailed line-item breakdown of fees, cash needed to close, rate, terms and costs over the life of the loan. The lender must also obtain your intent to proceed before they can move forward.
  • At least three days before closing, the lender must send you a Closing Disclosure Form, which looks almost exactly like the Loan Estimate, but also separates which costs are paid by the buyer, seller, and third parties. What this means for the borrow is that you will have more time to make decisions and review the final terms of your agreement.

There will be some growing pains in the near future, as lenders, brokers, and other key players figure out the details of this new regulation. Talk to your lender today and ask what starting the lending process could look like for you.

Tips For Refinancing Your Mortgage

What To Know Before Refinancing

Refinancing, is when a new mortgage replaces the original mortgage on a house.  This is done when it benefits the borrower to lock in a different, and better interest term and rate. In order to do this the first loan is paid off and this allows for a second mortgage to be created.  This could be great news for people with a nearly perfect credit history.  By refinancing it is possible to convert a variable loan to a fixed rate and by doing so lock in lower interest rate.  In many circumstances refinancing can work in favor of the borrower and lower mortgage payments. Having the right knowledge and being aware of the economic climate however is huge.

What is Refinancing

When refinancing you are applying for a new loan.  In this process obtaining a new mortgage will aim to reduce monthly payments, lower you current interest rates, change to a different mortgage company, and or take cash out of your house for one reason or anther. Since the borrower in a refinance is applying for a new loan there are a few things to keep in mind:

  • Your current credit score and payment history.
  • Employment history.
  • Your source of income and income.
  • Your assets such as saving accounts and stocks.

  • The current value of your house, otherwise known as an appraisal.

Benefits of Refinancing

  • Lower mortgage rate.
  • Lower monthly payments.
  • Obtain money for a large purchase such as a car or a home remodel. This is possible by taking what is called equity out of the house. Equity is built up over time as the value of ownership increases in a home or property. This represents the current appraisal value of the house less any remaining mortgage payments.
  • A more stable monthly payment. Commonly people chose to refinance from an adjustable-rate mortgage(ARM) to a fixed-rate mortgage in order to have a more stable and predictable monthly payment.
  • Reset a current loan. If your ARM Loan is about to adjust. For example if you had originally entered into a 7/1 ARM and it’s been six years, refinancing could be an option.
  • Consolidate two mortgages. Some people have two mortgages or a mortgage and a home equity line of credit (HELOC). For simplicity it may make since for the borrower to refinance both mortgages into one.

Points to Consider Before Refinancing

There are loan fees to be aware of before refinancing. To counteract or avoid entirely these fees, it is best to shop around or wait for low fee or no-cost refinance. Contact the Colorado Mortgage Group for current mortgage rates and helpful tips and one-on-one counseling to move forward with a refinance.

FHA Loans: Fixed Rate

What is a FHA Loan?

FHA loans have helped the United States become some of the most housed people in the world, recording over 73 million Americans as home owners. Today, FHA loans are popular. With lower down payment requirements and less stringent lending standards this loan is attractive especially with first-time home owners.  In Layman’s Terms an FHA loan is a mortgage backed by the Federal Housing Administration, a government agency located in the U.S Department of Housing and Urban Development (HUD).  Mortgage insurance is required for all borrowers, which protects the lender if the loan is defaulted. In the 1930’s there was a string of foreclosures and defaults. One response was the FHA program.  This in turn provided mortgage lenders with insurance that was necessary to help keep the housing market stable by creating loans that were affordable and accessible. With FHA home loans being implemented more than seventy years ago they have been a major contributor to home ownership rates in the United States.

The Advantages of a FHA Loan

Generally, an FHA Loan is one of the easiest mortgage loan types to apply and qualify for.  A few of the variables that make this possible include, requiring a low down payment and less-than-perfect credit.  A down payment of 3.5% is required for FHA loans.  For example, if you need a loan of 200,000 then the down payment would be $7,000.  A traditional down payment of 20 percent is not feasible for many prospective home owners. Another Advantage is that FHA loans can be assumable under certain conditions. This means if you want to sell your house, the buyer can “assume” the loan you have.  This is good news for people who have had a bankruptcy, low or bad credit, or been foreclosed in the past, because you still may be able to qualify for a FHA loan. Minimum credit scores for FHA loans depends on the type of loan.  For a down payment of 3.5% the borrower usually needs a credit score of 580 or higher.  Qualifying for a FHA loan with lower credit is possible, however the down payment must be at least 10 percent.  For the most part people with credit scores lower than 500 are ineligible for FHA loans.  There are certain circumstances that the FHA may consider credit scores under 500.

Another benefit of an FHA loan is that it allows lenders, builders, and sellers to pay some some of the borrower’s closing costs.  These closing cost could include an appraisal, credit report, underwriting fee, survey fee, etc.  If the lender is paying the closing costs this will come in the form of a higher interest rate. When they interest rate is higher, the lender offers the borrower a credit that can cover some or all of their closing costs.

If you need some extra cash to make repairs to the home you are buying, the FHA also has a special loan for this. This loan is called a 203K and and the advantage of this loan type is that the loan amount is based on the projected value of the house after repairs and not on the current appraisal of the property. This type of loan allows the borrower to finance up to $35,000 that could go toward painting, replacing cabinets and or fixtures.

What is a Fixed Rate Loan?

A fixed rate mortgage is simply what is sounds like.  It’s a mortgage where the duration of the loan has a fixed interest rate.  The length of the mortgage might be available in a various amount of time.  A measurement of time is considered a term.  For a fixed-rate mortgage the loan is paid-in-full when the term is complete.  The monthly payment for a fixed-rate loan is inversely proportional to the term allotted.  For example the more years in the term, the lower the monthly payments will be.  The reason for this is: with a smaller loan term the borrower repays the lender over a smaller period of time. 30 years and 15 years are the most common loan types .  A 20 year and 10 year loan are available as well.

The good news about a shorter-term loan are lower mortgage rates in comparison with longer-term loans then means less interest paid to the lender over time.

The benefits of a shorter-term loan are lower mortgage rates as compared to longer-term loans; and less mortgage interest paid to the lender over time. What many people enjoy about a fixed rate mortgage is the consistency and stability that comes along with it.  From day 1 your home loan is finalized, the principal and interest portion of your payment won’t change. For many people this certainty brings a peace of mind.

Finding the Loan that is Right For You

For many people a fixed rate term loan would be an ideal option.  Finding the right loan for your specific situation will depend on many different variables. What are your long-term financial goals, how about your short term goals? Can you predict foreseeable changes in your job, family, etc. Check today’s rates and compare loan pricing and get started on owning your home today.











How To Avoid Common Mortgage Approval Mistakes

The mortgage process can be an in depth process as well as time consuming. Ask your mortgage lender to help you during this season of your life.  Below are a few common mistake to avoid that will simply obtaining a mortgage approval. Stay clear of the following:

1. Avoiding or Leaving Out Information on Your Financial Profile

Colorado Mortgage Group will begin by reviewing your personal information.  This information will include employment, income, residence history, debts, and assets. The important take away is to answer every question and be truthful.  If every question about your financial profile isn’t answered, it has the potential to derail the loan process. It is better to know everything up-front so we can handle it before it becomes an issue.

2. Documentation, make sure you have everything

Your lender will next ask you for detailed documentation which may include:documentation photo

  • 30 days of pay stubs
  • Two years of tax returns and W-2s
  • Year-to-date business financial statements if you’re self-employed
  • Two months of statements for all asset accounts
  • Explanations and paper trails of all deposits (and often withdrawals)
  • A home insurance quote with adequate coverage
  • Full financials on any other homes or businesses you own

If any document is missing, providing it will be necessary to move forward. Colorado mortgage group will also run your credit, which can reveal employers, addresses, debts and other credit inquire. If new information comes to light, you’ll be required to explain and document all of it.

3. Pre-approval is not loan approval

You should consider your loan approved by an underwriter before you write any offer to buy a home. Lets talk about the difference between being “pre-approved” and obtaining loan approval.  Getting a mortgage “pre-approved” means you’ve talked to a lender, and provided the necessary documents listed above, and your personal profile looks good. This does not however mean you have loan approval.  The next step would be to get “underwriting approved”. This would mean obtaining a formal loan commitment in writing.  When this step has been accomplished your loan approval is official. Your Colorado Mortgage Loan officer will be the one to submit your file to an underwriter.

4. Not knowing what is realistic or being uninformed about rates

Avoid surprises when is comes to rates and get your lender to quote a rate based on your closing timeline.  Remember rates change daily.  Rates are based on how long they’re locked, for example a shorter lock at 15 or 30 days will have a lower rate that a longer lock such as 60 days.  As the borrower you are under rate market movement until you’ve entered into contract.  You are in contract when a seller accepts your offer.  It is key to know that before entering a contract you cannot lock a rate, this is because a rate is linked with the borrower and the property. Colorado Mortgage Group Publishes our rates online. These are the same rates you will receive when you call us for a quote.


FHA Secure Refinancing

On August 31st, 2007 the U.S. Department of Housing and Urban Development started to offer the new “FHASecure”.  This program helps homeowners refinance subprime loans and other adjustable-rate mortgages that are due to reset.

This FHA program has stepped in and helped people with adjustable rate mortgages and find themselves in financial trouble for one reason or another.  FHASecure refinancing plans allows for people who have previously purchased a home and have missed up to three mortgage payments in the last twelve months under specific circumstances to avoid foreclosure.  It is important to know that you don’t need an existing FHA home loan to qualify for an FHASecure refinance loan, rather the program is designed to target people without FHA loans to get lower payments, prevent default and foreclosure, and protect their investment.colorado photo

  • Homeowners with current or delinquent non-FHA adjustable rate mortgages are eligible.
  • You are not automatically disqualified based on delinquency on your current loan.
  • You must have a dependable income and be able to make your mortgage payment.
  • If you are in default, you must show delinquency or default is the result of increased interest rates and the resulting higher mortgage payments.
  • If you are current on your mortgage payments, any type of conventional loan is eligible for FHASecure refinancing.

For single-family homes, multi-family, and manufactured home can all qualify for FHASecure refinancing.  Something that a borrower should know would be that refinancing does not indicate flexible requirements for credit.  Borrowers should, have a stable income from a dependable source, show a trustworthy payment history on other debts, have a debt-to-income ratio below 41%, and have an acceptable credit score.