1 to 4 Family Home Mortgage 203b
With this program home buyers can obtain a FHA mortgage through HUD – Approved lenders, to purchase a home with a low down payment. HUD insures commercial lenders against loss. HUD does not lend the money for the mortgage; commercial lenders do under the HUDs guidelines through FHA. HUD will insure the loans for up to 97% of the sales price, with terms up to 30 years. The mortgage may finance homes in urban and rural areas. Maximum mortgage amounts are $200,160. in all areas however there are higher limits in areas were the median house prices are higher then the maximum of $362,790. for 1 unit homes in 2006 Higher limits exist for 2 to 4 family units. Also the loan limits change annually, based on home market pricing.
The lender will collect from the borrower a upfront mortgage insurance premium payment, which may also be financed, at the closing, as well as a monthly premiums that are not financed; but included in regular mortgage payment.
The eligibility of this program is for anyone that can meet the cash investment, and the mortgage payments and the credit requirements. But the program is generally limited to owner occupants.