Basic Home Mortgage Loan 203(b)
The Basic Home Mortgage Loan is for the purchase of a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.
- The borrower does not have to be a first time home buyer
- The borrower must meet standard FHA credit qualifications.
- The borrower is eligible for approximately 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
- Eligible properties are one-to-four unit structures, including condos and manufactured/mobile homes.
- You’ll generally need a credit score of at least 640 to qualify.
- FHA mortgages are available in both fixed or adjustable rate options.
FHA Streamline Refinance
Streamline refinance refers to the refinance of an existing FHA-insured mortgage requiring limited borrower credit documentation and underwriting. Streamline refinances are available under credit qualifying and non-credit qualifying options. “Streamline refinance” refers only to the amount of documentation and underwriting that the lender must perform, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are
- The mortgage to be refinanced must already be FHA insured.
- The mortgage to be refinanced must be current (not delinquent).
- The refinance results in a net tangible benefit to the borrower.
- Cash in excess of $500 may not be taken out on mortgages refinanced using the streamline refinance process