Single Family Home Financing
The basic single family FHA loan is called a FHA 203(B) mortgage loan. The eligibility guidelines require the following:
- Property is purchased as an owner occupied dwelling and the buyer intends to occupy the property as his or her primary residence
- Allowable Property Types are:
- Single Family Real Estate Homes (SFR)
- Condominiums and Townhomes (must be HUD approved projects)
- Planned Unit Development (PUD)
- No maximum sales price but there is a maximum loan amount
- Any homebuyer may use the FHA loan (a common misconception is that FHA is for first time buyers only) as long as they do not currently have another FHA insured loan in their name
- There are certain exceptions to this rule related to relocation, increase in family size, vacating a jointly owned property through a divorce, and being a non-occupying co-borrower on a family member’s loan; a case-by-case review of these types of situations is required to determine eligibility for a new FHA loan approval
- You may own other rental property that is not financed by FHA and still use a FHA loan to purchase a primary residence
FHA will finance up to 96.5% of the value or purchase price of any of these types of property for a mortgage rate/term refinance. States other than Arkansas may have different maximum loan amounts.
