What is a 203(b) FHA Mortgage Loan?

New Home BuyerAre you a first time home buyer in Smyrna, GA or metro Atlanta?  An FHA home loan might be the right option for you.  The Federal Housing Administration (FHA) is basically a government home loan insurance program.  For many first time home buyers, it can be difficult to obtain a home loan.  The FHA eliminates the risk for mortgage lenders by insuring the loan for the lender.

The 203(b) FHA Home Loan Program

There are different FHA home loan programs to consider.  The most popular home loan for first time home buyers is the 203(b).  This home loan is a standard fixed rate loan for 3-5%.  The FHA loan is not actually the lender, but the insurer of the loan.  203(b) has flexible credit requirements, which is perfect for younger home buyers who do not have a long history of credit, or those who have had a few credit problems in the past.  Home buyers who are helped with the down payment as a gift is acceptable as well.

FHA loans have become attractive to both buyers and mortgage lenders.  Most new home buyers should not have a problem obtaining FHA financing.  When looking for home loan programs, take a close look at the 203(b) FHA program.  If you have any questions about FHA loans in Smyrna, GA or the metro Atlanta area, please contact The Mortgage Guys to help you along the way to buying your first home.

 

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