The Kolesar Team only works with approved FHA lenders who offer competitive interest rates, loan costs and underwriting standards, which can vary in the industry even for the same loan.
A consultation with a member of our professional FHA loan team can help you quickly identify if you meet the loan requirements for an FHA loan, and can be arranged by calling 858-764-7837.
Whether you need a reduced down payment, or have not-so-perfect credit, an FHA loan remains one of the easiest loans to obtain today, benefiting first-time home buyers, as well as those who plan to make substantial repairs and need additional cash set aside for those improvements.
But there are qualifying factors for both the borrower and the home you choose. FHA loans require that a FHA-approved appraiser conduct an appraisal and it must meet certain standards of condition.
While a conventional loan typically requires a down payment of 20 percent, the down payment on an FHA loan can be a low as 3.5, which has been key to expanding home ownership for decades.
Furthermore, the source of the funds used for a down payment can be (in part or whole) a cash gift from a family member, as well as funds obtained through a grant from a state or local home buyer’s assistance program.
Other loan types often require that the source of funds used for a down payment be exclusively verified.
Closing costs include an appraisal, a credit report, title expenses, and more, and can often be covered by the seller, or the lender themselves. A home seller may, for example, agree to cover all or part of the closing costs as part of the negotiated price.
Closing costs can also be included in the loan, although a higher interest rate may apply.
Mortgage Insurance for an FHA loan is a two-part process: an initial premium (1.75 percent of the total loan) paid upfront, and an annual premium broken into monthly installments, included as part of the total monthly loan payment. The upfront premium is typically included in the loan.
The total amount of the loan, as well as the years financed will determine the annual/monthly premium installment. Borrowers who make a larger down payment can typically reduce, or avoid additional mortgage insurance fees, as they have personally assumed more of the risk with a larger down payment.
To encourage revitalization of older neighborhoods or damaged homes, FHA provides two types of loans to help homebuyers reserve a portion of loan funds to accomplish non-structural and structural repairs.
A standard 203k loan is provided for properties with structural needs, such as a new roof, room additions, the replacement of plumbing or electrical, as well as a deck, or garage addition. Pools and other ‘luxury’ items are excluded.
The maximum amount under a standard 203k FHA loan is determined by the lesser of two values:
Appraised value of the home plus costs of repairs, or 110 percent of the estimated value after the repairs/renovations are complete. A more streamlined 203k — think 203k Lite — covers non-structural upgrades, such as paint, new flooring, or upgraded appliances. A streamlined 203k loan allows for $35,000 above the purchase price of the home.
Qualifying properties for a 203k loan include:
The Kolesar Team has been successfully securing FHA financing for our clients for over two decades.
For more information about applying for an FHA loan, speak to one of our experienced team professionals by calling 858-764-7837.
Brendan and the team are as good as it gets! I’ve done multiple transactions through them over the past 5 years now and I guarantee you will be happy you used them.Scott Brouse
We embarked on our loan process thinking we would use an out of state loan agent we had used in the past despite our real estate agents recommendation of Brendan and team. After a couple hiccups with our other our other loan agent, we called Brendan. We were so impressed from the start with his clear communication and up front information. He, Tiffiney and Shannon remained responsive and thoroughly knowledgeable of every facet of the loan process. There were no unexpected surprises, everything that was possible was communicated from the start. We had an unbelievably unstressful experience! I wish they could have handled our escrow process too. You won’t be disappointed with the service they provide.Erica Sampo
Brendan and his team were an absolute pleasure to work with. They kept me informed during every step of my home purchase. I was able to get quick answers to all of my questions. I could not have asked for a more seamless process in purchasing a home. Thank you so much for all of your teams hard work and dedication. This truly has been an excellent experience and my daughter and I are looking forward to settling into our new home. Thanks again!Greg Simpson
We cannot say enough about our real estate agent, Chris Fox, and Sean Stanfield with the Kolesar Team at Home Point Financial! Their professionalism, caring nature, extensive knowledge, and ongoing communication was impressive. Throughout our home buying process, they were extremely patient and responsive, which helped make this experience enjoyable (and definitely not stressful)! The entire team is trustworthy, and we highly recommend them for your next real estate transaction!Kelli Bremonte Cardenas
Brendan and his team were wonderful. I have never experienced a service like it. Everything was so stress free and his team were EXCELLENT with their communication. When you meet someone and they tell you “don’t worry, I’m here to handle it all” it does put you at ease and Brendan was that man! Thank you, thank you, thank you, for making my recent house purchase so easy and (dare I say it?) fun! I especially love the kooky videos they send you which explains everything in very easy to understand terms.Debbie Price