• Purchase Loan Header
    Buying a Home with an FHA Loan

    Step 1 of 2

    50%

FHA Home Purchase Loans

FHA Mortgage Loans make home mortgages available for borrowers who would otherwise not qualify for a conventional mortgage.  Not all banks and mortgage lenders offer FHA Loans.  In order for a lender to offer an FHA home mortgage loan, that lender must have a direct endorsement and go through an HUD approval process.  People commonly assume the FHA offers loans directly.  In reality, The Federal Housing Administration or “FHA” insures the loans for approved FHA lenders in order to improve housing standards and conditions.

FHA 203b Home Purchase Loan


An FHA Home Purchase Loan is sometimes referred to as a 203b and is a fixed rate home loan program. It is the most common FHA purchase loan program. Here are some of the standard FHA loan guidelines that apply to the 203b purchase loan:
  • The minimum down payment required is 3.5% of the sales price.
  • Gift funds are allowed to be used as a down payment by prospective homeowners
  • Borrowers can finance up to a maximum loan-to-value (LTV) of 96.50%.
  • New or existing one-to-four single family unit structures are eligible.
  • Loan terms for the 203b home loan are either 15 or 30 fixed mortgages

FHA Mortgage Loans
make homeownership possible for more people.

The Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), provides loan programs that make buying a home easier for those with lower credit scores, limited cash for down payment, and for those who may not qualify for other types of loans.

What is an FHA Home Mortgage Loan?

“FHA loans” are mortgages insured by the Federal Housing Administration...

Read more

How to Qualify for an FHA Mortgage

FHA Approved Lenders make it simple to qualify online for an...

Read more

Guidelines and Requirements for an FHA Mortgage Loan

Mortgage insurance, lending limits, debt to income ratios, credit...

Read more

FHA Loans for First Time Home Buyers

FHA Loans are often marketed as a product for “first-time...

Read more

Credit Score Requirements for FHA Loans

FHA requirements for credit scores are far lower than for conventional...

Read more

FHA vs. Conventional Home Loans

Learn the differences between conventional and FHA loans before...

Read more

All About FHA 203k Loans

The Federal Housing Administration, otherwise known as the FHA,...

Read more