FHA

FHA Section 203 B mortgage
Section 203 (b) is FHA’s single-family mortgage program.  It’s the most commonly used program because it is available in all areas of the country.  The property or the home should meet HUD’s Minimum Property Standards.  The mortgage may be used to purchase or refinance a new or existing one-to-four family home in both urban and rural areas, including manufactured homes on permanent foundations.  Usually, the lenders can offer terms at 15 or 30 years, and interest rates are negotiated between the parties. 
Interest rates on FHA loans are generally slightly higher than market rates, while down payment requirements are lower than conventional loans. Down payments can be as low as 3.5 percent. In many cases, closing costs can be wrapped into the mortgage.
FHA insured mortgages offer many benefits and protections.  Because FHA insures the mortgage, lenders are more willing to give loan terms that make it easier for borrowers to qualify.  The borrowers can get a FHA mortgage even if they don’t have perfect credit.  The FHA’s mortgage programs do not have minimum income limits to qualify.  The income limits may be presented when qualifying for down payment assistance or other secondary financing programs. 
 In order to be eligible for the program, the borrower must meet the standard FHA credit qualification.  The borrower may eligible for approximately 96.5% financing and they may able to finance the upfront mortgage insurance premium into the mortgage.  The eligible properties are one to four unit structures and the borrower will be responsible for paying an annual MI premium. The upfront premium is financed into the loan amount.

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