FHA program which provides mortgage insurance to protect lenders from default; used to finance the purchase of new or existing one- to four family housing; characterized by low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount.FHA loans are a wonderful tool for first time homebuyers as well as buyers with limited credit, or down payments. The FHA 203b program allows for a 3% down payment which can be from flexible sources such as gift funds from family members, employers as well as non- profit organizations.
FHA 203b or 203(b) financing refers to FHA loan section 203(b), and is the most popular FHA program to purchase single family, duplex, 3 family and 4 unit homes.
If you are purchasing a condo you will not have an upfront mortgage insurance premium like you would normally have with the program.
The FHA 203(b) allows for a non-occupant co-borrower to help one qualify for the purchase of a home. The non-occupant co-borrower's income can help you qualify for a purchase and this is a great way for someone's parents or close friend to help them purchase their first home.
The FHA 203(b) program is great for first time homebuyers and those with credit issues alike. FHA loans will allow folks to qualify for financing with a credit rating of 620 or lower, as long as you have a good credit history for the past year. Contact Michael R. Byrne at 1-800-999-2489 x7972 or mbyrne@gfhomeloans.com for more information about upfront MIP and the workings of FHA loans.
The FHA 203(b) allows for multi-unit, owner occupied properties to be purchased for as little as 3% down. The FHA 203(b) program also allows for a maximum seller concession of 6%. On a 3-4 unit loan, the buyer must have 3 months mortgage payments in rerserves after closing.
