Buying a home or investment property in Colorado Springs is an excellent decision, especially when you can take advantage of FHA loans.  Many people are unclear about FHA loans and think they are only for first-time homebuyers, but they can be used to purchase investment property as well.  When buying a home in Colorado Springs, an FHA loan can be an option.

The HUD website will give you more information on FHA lending. They have been helping people become homeowners ever since 1934.  The program works by insuring a loan through the Federal Housing Administration (FHA), which is a division of HUD.  Because your loan is insured by the federal government, you get a better deal on the interest rate, plus low down payments, low closing costs and less stringent loan qualifiers.

With an FHA loan, your down payment can be as little as 3.5% of the purchase price, and closing costs can be wrapped into the loan. This allows a lot more people to enter the housing market.

When considering Colorado Springs real estate, remember there are some restrictions with FHA financing.  While FHA loans cover single family homes, townhomes, condos, duplexes, triplexes and more, there is a limit to the allowable purchase price for each area of the country.

In El Paso County, which includes Colorado Springs, Manitou Springs, Monument and Fountain, here are the FHA purchase-price limits

• Single Family, Condo or Townhome:  $325,000
• Duplex:  $416,050
• Triplex:  $502,900
• FourPlex:  $625,000

Fortunately, most duplexes and triplexes are well under these limits, so now is the perfect time to take advantage of FHA financing.  A Colorado Springs real estate broker can help you find the best investment properties and other homes in the Pikes Peak region.