FHA 203(b) basic home mortgage program

E7194

The FHA 203(b) basic home mortgage program is the Federal Housing Administration’s primary loan insurance program that helps homebuyers, particularly first-time and lower-income borrowers, obtain affordable, low–down payment mortgages for one- to four-family homes.


Statements (46)
Predicate Object
instanceOf Federal Housing Administration program
mortgage insurance program
administeredBy Federal Housing Administration
alsoKnownAs FHA 203(b) program
FHA basic home mortgage program
appliesToPropertyType four-family homes
one- to four-family residences
one-family homes
three-family homes
two-family homes
appliesToPropertyUse owner-occupied properties
benefits increased access to credit for borrowers with limited savings
more flexible underwriting standards than many conventional loans
borrowerObligation must meet FHA underwriting and eligibility criteria
category FHA single-family mortgage insurance program
country United States
creditFlexibility allows more flexible credit standards than many conventional loans
distinguishedFrom FHA 203(k) rehabilitation mortgage insurance program
downPaymentCharacteristic minimum down payment typically lower than conventional loans
excludes most second homes
non-owner-occupied investment properties
feature federally insured mortgage loans
long-term fixed-rate financing is common
low down payment requirement
mortgage insurance premium requirement
hasLoanLimits subject to FHA county loan limits
legalBasis authorized under Section 203(b) of the National Housing Act
lenderType FHA-approved lenders
loanUse purchase of a principal residence
refinance of an existing mortgage on a principal residence
marketRole supports liquidity in the low- to moderate-income mortgage market
occupancyRequirement borrower must occupy the property as primary residence
partOf U.S. federal housing programs
propertyStandard property must meet FHA minimum property standards
provides mortgage insurance to approved lenders
purpose to assist lower-income borrowers
to expand homeownership opportunities
to help homebuyers obtain affordable mortgages
to support first-time homebuyers
regulator U.S. Department of Housing and Urban Development
requires borrower to pay annual mortgage insurance premium
borrower to pay upfront mortgage insurance premium
riskManagement FHA insures lenders against losses from borrower default
targetBorrower borrowers with limited down payment funds
first-time homebuyers
lower-income borrowers

Referenced by (5)
Subject (surface form when different) Predicate
FHA 203(b) basic home mortgage program ("FHA 203(b) program")
FHA 203(b) basic home mortgage program ("FHA basic home mortgage program")
alsoKnownAs
Federal Housing Administration
Federal Housing Administration ("FHA 203(k) rehabilitation mortgage program")
program
United States housing policy ("FHA-insured mortgage programs")
includesProgram

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