FHA Loans
FHA Loans in Durango & Southwest Colorado
Lower Down Payment Options With FHA Loans
FHA loans are insured against default by the FHA. If the borrower defaults, FHA mortgage insurance covers the lender’s loss. These types of loans allow people to buy a home with a low down payment, while other loans may require more down.
Learn more about working with a local Durango mortgage lender.
FHA or conventional?
Tap a topic to compare the two most common home loans.
FHA
Conventional
Look up the FHA limit for your county
General information, not a loan approval. Source: HUD FHA forward mortgage limits for 2026 for all 64 Colorado counties, effective January 1, 2026. Limits are updated each year.
FHA Loans
- Low down payment option on purchases
- Easier to use gifts for down payment and closing costs
- No prepayment penalty
- Financing for home improvement using FHA 203k programs
Who qualifies for an FHA Loan?
Many buyers qualify for an FHA loan. There are no income limits, but there are limits on how much you can borrow. In general, you’re limited to median home prices in your area. To find the limits in your region, visit HUD’s Website. To qualify for an FHA loan, you’ll need to have reasonable debt to income ratios. You don’t need perfect credit because FHA offers flexible credit guidelines.
FHA Loans in Durango and La Plata County
FHA loans are a strong fit for first-time buyers, buyers rebuilding credit and anyone without large savings. Peter Pritchard has helped buyers use them across Durango, Bayfield, Ignacio, Pagosa Springs and Cortez for 28 years, and compares FHA lenders for you, since each sets its own guidelines on top of FHA’s.
Local things to plan for
- County loan limits. FHA sets a maximum loan amount for each county, and it changes every year. Ask Peter for the current La Plata County limit.
- Condos. The condo project must be FHA-approved, or the unit must qualify for a single-unit approval. Many resort and short-term rental buildings don’t.
- Appraisal condition. FHA appraisers check safety items such as handrails, peeling paint, roofs and heating. Small repairs can usually be handled before closing.
- Wells and septic. Rural homes may need water testing and a septic inspection.
- Fixer-uppers. An FHA 203(k) renovation loan can roll repair costs into your mortgage. Try the renovation loan calculator.
FHA Loan Questions
Do I have to be a first-time buyer to use an FHA loan?
No. FHA loans are for a home you will live in as your primary residence, and you do not have to be a first-time buyer. You can generally have only one FHA loan at a time, with some exceptions.
What credit do I need for an FHA loan?
FHA guidelines are more flexible than most conventional loans, and each lender sets its own minimums on top of them. Because Peter compares many lenders, he can often find one whose guidelines fit your credit.
Does an FHA loan have mortgage insurance?
Yes. FHA loans have an upfront mortgage insurance premium, which is usually financed into the loan, plus a monthly premium. Depending on your down payment, the monthly premium can last for the life of the loan, which is why some borrowers later refinance to a conventional loan.
Can I buy a condo near Purgatory with an FHA loan?
Only if the project is FHA-approved or the unit qualifies for single-unit approval. Check before you write an offer. See Durango and Purgatory condo loans.
Can I use an FHA loan for a home that needs work?
Yes. An FHA 203k renovation loan combines the purchase price and the cost of repairs or updates into one loan.
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