FHA Outlying Area Program 203(i), What are the Requirements?
FHA Outlying Area Program for First Time Home Buyers
If the home you are interested in is located in a rural area, then this program is the best one for you. Section 203(i) provides mortgage insurance for a person to purchase a principal residence in a rural area. A lending institution, such as a mortgage company, bank, savings and loan association, funds the mortgage loan and HUD insures the mortgage.
What are the eligibility requirements?
Borrower must meet standard FHA credit qualifications.
Borrower is eligible for approximately 97% financing. Borrower is able to finance closing costs and the up front mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
Eligible properties are one to four unit structures, including farm housing located on 2 acres or more of land adjacent to an all weather road.
FHA has so many specialized programs for first time home buyers that if this program is not the right fit for you, there is another one. I highly recommend FHA. It is the best way with the lowest amount of upfront money to buy a home.
A lot of loan officers shy away from FHA and I don’t know why, because it is a good program to start off with. So don’t hesitate to investigate what you qualify for. It doesn’t cost anything to find that out.
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