FHA 203b loan…what is it?

FHA Loan Section 203(b) is the most popular FHA program. You may use this program to purchase new or existing 1-4 family homes, condos or townhomes, in both urban and rural areas. A section 203(b) fixed mortgage may be repaid in monthly payments over 15 or 30 years.

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.

Everyone, who has a satisfactory credit record, enough cash to close the loan, and sufficient income to make monthly mortgage payments can be approved for a section 203(b) mortgage. You do not need to be a first time home buyer to qualify for an FHA 203(b) mortgage. To get a section 203(b) loan, you may apply on-line, or call one of our representatives at 800-783-8400.

With a section 203(b) mortgage, you can make extra payments toward the principal when you make your regularly monthly payment. By making extra payments, you can repay the loan faster and save on interest. You can also pay off the entire balance of your FHA-insured mortgage at any time, with no penalty to you.