FHA Mortgage Insurance Program

The FHA 203b Home Loans Program is an awesome FHA mortgage insurance program to put families into homes.

On this webpage I will share with you two very important things about the FHA 203b loans and why I think it is your absolute best choice.

You will discover how the credit guidelines are the easiest for you to meet when compared to conventional loans. .

This is very important if you have had any credit issues in the past. Also I will share with you how the low down payment (3.5%) works and briefly tell you how to get a grant to cover it.

FHA 203b Home Loan Credit Guidelines

The FHA home loan programs have the most relaxed credit standards, the lowest down payment requirements and give you a great chance at home ownership. Obtaining a mortgage loan is just one piece in the puzzle of the home buying process. But it is a key puzzle piece.

FHA Home Loans Criteria

• For the lowest down payment (3.5%), the borrowers must have a minimum credit score of 580
• Borrowers with credit scores lower than 580 will be required to put 10% down and this money cannot be financed
• Must have verifiable income for the past 2 years
• Cannot have a bankruptcy in the past 3 years, unless you are in a chapter 13 with a minimum 1 year of on time payments and trustee approval
• No foreclosures in the past 2 years

Of course there are some other guidelines to meet, but these are the biggest hurdles to jump before qualifying for the FHA mortgage insurance program.

FHA 203b Down Payment Requirements

Now as I mentioned above, if you have a credit score of 580 or above you can use the low down payment of just 3.5% of the sales price and this can be a gift from a family member, charity or a loan from your 401K if you meet all the debt ratios etc. Ideally this would be money you have in a bank account because FHA and the lender would like to see you have some skin in the game so to speak.

There are some really great first time home buyer grant programs out there also. These are discussed on some other pages of this site, but in short, you can find money in your community that helps the first time home buyer with the down payment money. Just visit some of the links below.

Other FHA Mortgage Options

At the beginning of this page I mentioned the FHA 203b loan as your best choice. However there are many others, for example the FHA 203k, FHA 203i, EEM loans and even Title 1 loans. One thing all of these loans have in common. They are all insured mortgages.

So what this means is that HUD will guarantee to your lender that you will repay the loan. That is where the FHA mortgage insurance program comes in. It's an insurance just plain and simple. However it does come with a price that you must pay.

More About FHA 203b Program

It can be a bit confusing when you try to decide which type of loan to take out to help realize your dream of home ownership. The most common one though, is the FHA 203b which is part of the FHA mortgage insurance program.

The FHA mortgage insurance program is designed to help those who qualify to refinance or purchase a existing or new home. This can be in a rural or urban area, and it can include the purchase of a manufactured home that is on a permanent foundation. It can also be a one to four family structure.

The FHA 203b guaranteed loans are offered for terms of 15 or 30 years, but the FHA is not in charge of setting the interest rates. The interest rates are set by the lender, but the borrower can do what they can to negotiate for the best rates.

There is a great deal to be learned when comparing the terms and conditions of FHA home loans with those of conventional mortgages. Due to more lenient requirements, this cool program which is designed to protect the lender, is one of the easiest FHA home loans to qualify for.

Even though FHA loans still require a down payment, you will find that down payment is not as steep as those of conventional loans. In many cases a conventional loan requires 10%-20% down, the FHA 203b loan can be as low as 3.5%, and this can be supplied by a family member, employer or charitable organization as a gift.

FHA home loans are not loans that are provided by the government, instead they are guaranteed by the federal government when banks and lending institutions offer them to those individuals who wish to take advantage of the FHA home loans program. The FHA mortgage insurance program is helping to put more families into homes than might be possible otherwise.

Some lenders have chosen to not participate in this type of program, so you will have to do your homework if you are interested in taking advantage of this loan program. You may want to check out . They have helped many get an FHA loan.

I'm sure you have many more questions. I provided you some links below to some of the most important things you need to know. Feel free to visit some other pages and see for yourself why I feel this is the best loan program for you.

Even though FHA home loans are the best, perhaps you need a program that doesn't require any money down. Zero Down Home Loans gives an awesome explanation of how these work.

Stay up-to-date with all that is new at First Time Home Buyer Solutions. Subscribe to the RSS feed at the bottom of the navigation bar over on the left.

Leave FHA Mortgage Insurance Program and return to Best FHA Home Loans main page.

Return to First Time Home Buyer Solutions home page.

Would You Like Your Own Website?
Click Here for FREE Details.

© 2005-2011 All Rights Reserved
Powered By SBI!