Montrose FHA Loan Rates, Closing Costs & Stats

Montrose, CO

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Montrose's 33 lenders originated 157 FHA loans during 2023. The total origination value was $46,635,000, with an average FHA loan value of $297,038.

Montrose FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Montrose averaged 6.72% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

Montrose's average FHA mortgage closing costs are $9,398.

The average rate for the prior week (2024-07-12) was 6.87% and one month ago for the week of 2024-06-14, the average rate was 6.53%.

The average rate one year ago was 6.62%.

For refis of the same type during the week of 2024-07-19, the average rate was 6.59%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Montrose FHA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Montrose level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
CORNERSTONE HOME LENDING, INC. 13 6.55% $11,512
S1L, Inc. 12 6.20% $17,497
QUICKEN LOANS, LLC 9 6.22% $10,765
GENEVA FINANCIAL, LLC 9 6.68% $12,981
UNITED WHOLESALE MORTGAGE, LLC 8 5.90% $12,395
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 7 7.05% $12,927
ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 7.13% $9,570
BROKER SOLUTIONS, INC. 4 6.88% $13,196
LOANDEPOT.COM, LLC 4 6.25% $16,053
ACADEMY MORTGAGE CORPORATION 3 6.54% $15,058
MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.67% $18,571
Mr. Cooper ( Nationstar Mortgage ) 2 6.19% $20,761
AMCAP MORTGAGE, LTD. 2 7.38% $15,902
LOANPAL, LLC 1 5.63% $21,059
Loan Simple, Inc. 1 7.13% $13,485
Nations Lending Corporation 1 5.75% $22,156
NBH Bank 1 5.75% $13,782
Network Funding, L.P. 1 6.63% $11,978
THRIVE MORTGAGE, LLC 1 7.00% $11,256
UNIVERSAL LENDING CORPORATION 1 6.25% $15,262
U.S. Bank 1 6.75% $12,273
AMERICAN FINANCIAL NETWORK, INC. 1 8.25% $16,661
AMERISAVE MORTGAGE CORPORATION 1 6.25% $15,198
Bank of Colorado 1 6.63% $12,843
Carrington Mortgage Services, LLC 1 7.63% $9,666
CMG MORTGAGE, INC. 1 6.25% $9,896
CROSSCOUNTRY MORTGAGE, LLC 1 7.25% $13,575
EMM LOANS LLC 1 6.25% $19,150
FREEDOM MORTGAGE CORPORATION 1 6.25% $9,399
GUARANTEED RATE AFFINITY, LLC 1 5.73% $10,594
GUILD MORTGAGE COMPANY 1 5.63% $17,588
INTEGRITY MORTGAGE & FINANCIAL INCORPORATED 1 6.99% $15,683
LAND HOME FINANCIAL SERVICES, INC. 1 7.00% $18,941

The top Montrose FHA lender as defined by loan originations is CORNERSTONE HOME LENDING, INC., with 13 FHA loans originated. Their average total fees are $11,512, which is $5,986 lower than the next largest lender, S1L, Inc..

The lowest fee Montrose FHA lenders (with over 10 loans originated) are CORNERSTONE HOME LENDING, INC. ($11,512), S1L, Inc. ($17,497), .

The lowest rate Montrose FHA lenders (with over 10 loans originated) are S1L, Inc. (6.20%), CORNERSTONE HOME LENDING, INC. (6.55%), .

Montrose FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
MONTROSE, CO MONTROSE 2020 $425,500 $544,700 $658,450 $818,250
MONTROSE, CO OURAY 2014 $425,500 $544,700 $658,450 $818,250
MONTROSE, CO MONTROSE 2023 $472,030 $604,400 $730,525 $907,900
MONTROSE, CO OURAY 2023 $472,030 $604,400 $730,525 $907,900

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).