FHA 203B

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.
GET YOUR RATE

What is Mortgage Insurance?

Mortgage Insurance is protection that ensures the loan specialist, not you. It’s typically an one-off installment made by the borrower at the time of credit settlement. Here are the facts about it:

  • It is a kind of protection you can hope to pay in the event that you acquire over 80% of your home’s estimation.
  • It secures the lender – not the borrower.
  • You don’t have to arrange the Insurance yourself – your mortgage lender will sort it for you.
  • It’s possible to save money on the Insurance by sparing a greater deposit.

 

What is amount limit for Lenders' Insurance?

This relies upon where you borrow, your lender and the size of your deposit. Your broker can tell the best way to figure Mortgage Insurance for your conditions.