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Buying a home in Colorado Springs is like deciding to settle down in paradise. Still, there are a few hoops to jump through, like securing a mortgage. Choosing a mortgage lender may feel tricky, but we're here to help. Here, we introduce you to the five best mortgage lenders in Colorado Springs we’ve found, tell you a little more about each, and answer your questions about how to land the right loan.
Best for: Best for non-qualifying mortgages
New American Funding
Bottom Line
New American Funding is one of the largest privately owned direct mortgage lenders in the country. The lender offers competitive rates and a wide variety of loans and customizable loan terms. The lender also has a highly efficient lending process that allows for quicker closing times. What's more, New American can be a good solution for people building credit and wanting a good mortgage. It focuses on lending to underserved communities.
Min. Credit Score 580 FHA 620 other mortgage products
Min. Down Payment 0% VA 3% Conventional 3.5% FHA
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
Best for: Best for its online digital platform
Guaranteed Rate Mortgage
Bottom Line
Guaranteed Rate does a great job with ease of usability, offering comprehensive loan information during your research phase, plus the option to securely upload and digitally sign loan documents when you're ready to apply. The lender publishes its rates for different loans online, making it easy to compare options.
Min. Credit Score 550 VA 560 FHA 620 Conventional 660 Jumbo
Min. Down Payment
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
Best for: Best for loan options
Pennymac
Bottom Line
Pennymac specializes in government mortgages like VA and FHA loans. Pennymac offers rate transparency, help via phone or online, flexible loan terms, and a rate guaranteed to beat competitors. Pennymac is a great place for people to start looking for a mortgage.
Min. Credit Score 580 FHA and VA loans 620 Conventional loan 700 Jumbo loan
Min. Down Payment
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
Best for: Best for members of the military and their familie
Bottom Line
The fact that it is one of the largest VA home lenders speaks volumes. Veterans United specializes in VA loans for military members, and offers 24/7 customer service over the phone as well as free credit counseling service. But Veterans United also offers an array of terms and loan products, in addition to competitive rates.
Min. Credit Score
Min. Down Payment
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
Best for: Best for self-employed buyers
NASB Mortgage
Bottom Line
The self-employed borrower program may be a great option for people who otherwise have a hard time getting a competitive loan, plus the lender still offers a good range of mortgage programs for other needs.
Min. Credit Score 580 FHA Loans 620 for Conventional 660 for VA Loans
Min. Down Payment
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
With mortgages available in every state except Hawaii, New American Funding offers an exceptional range of loan products. With a minimum acceptable credit score of 580, a lower-than-average score does not necessarily disqualify a buyer. In addition, home buyers who haven't saved much for a down payment can land a loan with as little as 0% to 3.5% down.
Guaranteed Rate offers mortgages in all 50 states. Its robust online digital platform is nearly impossible to beat, with education materials that walk first-time home buyers through the process. Whether buying a new home or refinancing, customers rave about the service and consider it one of the best Colorado Springs mortgage lenders.
PennyMac is the second-largest mortgage lender in the U.S. One look at the lender's profile indicates why: Low credit scores considered, a wide array of loan options, and highly rated customer service. Plus, PennyMac's streamlined system makes home loan application a breeze.
Veterans United may be for members of the military and their families, but it offers far more than VA loans, and deserves to make our list of the best mortgage lenders in Colorado Springs. One of the things we like most about this lender is that it provides customer advocates from every branch of the military to make sure customers are treated the way they want to be treated, from applying to closing on a home. The combination of low down payments and a minimum credit score of 620 makes it easy for military members to qualify for the mortgage they need.
Self-employed but need a mortgage? That's okay. Of all our favorite mortgage lenders, NASB is the most flexible when it comes to non-conforming loans. Plus, the company's flexible underwriting practices make it possible for those with lower credit scores to qualify for a mortgage.
The best Colorado Springs mortgage lenders can save you thousands of dollars over the life of your loan, which helps explain why it's so important to shop around until you find the right one. Here's what you should look for in a great mortgage lender.
You'll be asked for documentation and at times, it may feel excessive. Rest assured that it's all part of the process. These steps can make it easier to get approved for a Colorado Springs home loan:
Depending on the type of loan, it's possible to be approved for a mortgage with a credit score as low as 580. The problem with being approved for a mortgage with the lowest possible score is that the mortgage rate you're offered is likely to be high. That means marrying yourself to a mortgage with higher payments than you might like. If you can take the time to build your credit score, it's worth considering.
The amount you'll pay for a down payment depends entirely on the loan type. For example, you can get a VA loan with 0% down and an FHA loan with 3.5% down. One reason you may hear people say you need at least 20% down is that buyers who put 20% or more down on a mortgage loan get to skip paying monthly mortgage insurance. Mortgage insurance is a fee you pay to the mortgage company. In turn, they buy insurance on the loan so if you default, the lender will recover some of the loss.
While some home-buyer programs are state-wide, others are offered specifically by El Paso County. Here's a sample of the types of programs available in 2022:
It's no secret we're in the midst of a competitive housing market. The best move is to arm yourself with information about how much homes were worth pre-pandemic and make an attempt to estimate how much they might be worth once prices begin to stabilize (your real estate agent can help).
Don't get so caught up in a buying frenzy that you're willing to spend more than you're comfortable spending, and don't spend so much that you sacrifice your financial security. Before you do anything else, run the numbers to learn how much you can afford.
Finally, don't feel bad if this market is a little too hot for you right now. Waiting it out means more time to gather a larger down payment and ultimately choose the lender that best fits your needs.
Lender | Best For | Next Steps |
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Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For
Best for non-qualifying mortgages |
|
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For
Best for its online digital platform |
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For
Best for loan options |
|
Veterans United
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For
Best for members of the military and their familie |
Check Rates for Veterans United
On Veterans United's Secure Website. |
NASB Mortgage
Rating image, 3.5 out of 5 stars.
3.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 3.5 out of 5 stars.
3.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Best For
Best for self-employed buyers |
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The best place to buy a home in Colorado Springs is in a safe neighborhood, in a house you can afford. The answer to the "best places in Colorado Springs to live" depends entirely on what you're looking for.
In February, the median listing price of a home in Colorado Springs was $429,000. That's up 14.7% over last year. The median sales price was $466,500.
While it's a negotiable expense, it's typically the home seller who pays title insurance in Colorado Springs.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.