The FHA 203(b) program insures fixed-rate loans for which type of property?

The FHA 203(b) program insures fixed-rate loans for which type of property?

• A. Owner-occupied, one-to-four family properties
• B. Investment properties
• C. Vacation homes
• D. Commercial properties

Answer: (A)

The FHA 203(b) is the standard FHA loan designed for purchasing a primary residence, and it provides insured fixed-rate financing for properties that the borrower will occupy as their home. It specifically applies to owner-occupied homes with one to four housing units, meaning single-family through fourplex properties. Because of this primary-residence focus, investment properties, vacation homes, and commercial properties aren’t eligible for this program. If the goal is a primary residence with a fixed-rate loan, this is the correct fit, whereas the other property types require different loan programs.

The FHA 203(b) is the standard FHA loan designed for purchasing a primary residence, and it provides insured fixed-rate financing for properties that the borrower will occupy as their home. It specifically applies to owner-occupied homes with one to four housing units, meaning single-family through fourplex properties. Because of this primary-residence focus, investment properties, vacation homes, and commercial properties aren’t eligible for this program. If the goal is a primary residence with a fixed-rate loan, this is the correct fit, whereas the other property types require different loan programs.