The Forester 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 949-640-3111.
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 Southern California 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 Southern California 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 Southern California 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 Southern California properties for a 203k loan include:
The Forester 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 949-640-3111.
Thank you so much for all that you have done for us throughout this process. I honestly do not know if we would have our dream home if it weren’t for your amazing work ethic and ability to get the ball rolling so quickly. Two offers were put on our home while awaiting the loan approval! No one else could have made that happen as quickly and efficiently as you did! We are eternally grateful to you and your amazing team at Team Forester Home Point Financial. Thank you. Thank you. Thank you.Amy Stock
I would like to appreciate you and your team’s work for getting this refinancing processed and finished in time with such an efficiency. You made it go through with such an ease. I would most definitely recommend you and your team in the future.Thank you again for your support and help!Helena Chun
Thank you for assisting me and my family with the purchase of our home. The entire process was beyond expectations. All of you have made my first time home buying experience enjoyable and memorable.I’m very pleased and will definitely recommend and work with all of you again.Semper Fidelis
Thank you all for your assistance and guidance through our first purchase. It went very well (much smoother than anticipated) and we thank you for all the hard work you all have put in to getting us into this home. We look forward to working with you again in the future.Eric & Nicole Roachell
Casey Forrester is the best in all regards, I can’t say enough good things about him. We just closed a VA loan in 21 days yesterday. He is able to fully underwrite the file before he even gives a pre-approval letter which allows you to offer without a loan contingency! Also, you can close in 21 days which cuts the escrow period by 30% and increase profitability and cash flow for you as the agent. He also has an online pre-approval link in his signature that makes getting pre‐approved super easy!Drew Schulte
Thank you, Casey, for a job well done. I was so glad that I called you to refinance our home. The moment that I talked to you on the phone that first day about the refi, it felt like a huge weight was lifted off my shoulders.You put my mind at ease, I was calm and confident that I had made the right choice.Derek Paddock
I have truly appreciated working with you and your team and will continue to recommend you to our friends!Brian & Nina Kasper
You and your team didn’t have the easiest case, but you handled it so well. Your communication was great, and everyone we dealt with was very friendly. I wish we had worked with you on the first go-around, but either way, we are looking forward to working together again in the future.Andrew & ArielKinsler