A 203(b) loan is a FHA program which provides mortgage insurance to protect lenders from the possible default of borrowers. It is used to finance the purchase of new or existing one to four family home. They are commonly characterized by a low down payment, flexible qualifying guidelines, and limited fees, but have a limit on maximum loan amount.

This article is part of the Real Estate Wiki's glossary. To see the entire glossary, click here.
Quick Glossary: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z