What is the purpose of this program?
To provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution (e.g., mortgage company, bank, savings and loan association), and is insured by the Department of Housing and Urban Development (HUD.
Who is eligible for an FHA 203(b)? According to the FHA:
- The borrower must meet standard FHA credit qualifications.
- The borrower is eligible for approximately 96.5% financing and thus has the ability to finance the upfront mortgage insurance premium into the mortgage.
- Paying an annual premium will be the responsibility of the borrower.
- Borrowers looking to purchase apartments, duplexes, triplexes or fourplexes.