FHA’s 203(b) Purchase Money . Loan Guarantee Program . Introduction . The Federal Housing Administration (FHA) administers several programs to promote homeownership. These programs are popular because they allow borrowers to buy a home with a lower down payment and less restrictive underwriting criteria than might be the case with.
The FHA 203(b) loan program is the most widely used loan program in the country. Purchasing or refinancing, the 203b works well with both first time buyers and seasoned homeowners alike.