FHA Mortgage Points

Do 203b Loans Permit Cash Back?

Do 203b Loans Permit Cash Back?

FHA 203(b) loans do not permit borrowers to take more than $500 cash back during refinancing. In order to turn your home equity into cash, you should instead look into an FHA cash-out refinance, which allows borrower’s to finance up to 95% of the home’s value (LTV) for first mortgages up to $417.000, and up to 85% LTV for all other loans.

Can a Seller Pay Mortgage Points for a 203b Loan Borrower?

Can a Seller Pay Mortgage Points for a 203b Loan Borrower?

If you want to purchase mortgage points, also known as discount points on your FHA loan, you may be able to convince the seller of the property to buy them for you. One mortgage point usually costs 1% of the entire loan amount, and will reduce the interest rate of the loan between 0.125 and 0.25%.