FHA program which provides mortgage insurance to protect lenders from default; used to finance the purchase of new or existing one- to four family housing; characterized by low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount.

If you are purchasing a condo you will not have an upfront mortgage insurance premium like you would normally have with the program.

FHA loans are a wonderful tool for first time homebuyers as well as buyers with limited credit, or down payments. The FHA 203b program allows for a 3% down payment which can be from flexible sources such as gift funds from family members, employers as well as non- profit organizations.

 

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