Section 203b

Under the 203(b) program:

1. Anyone 18 and over is eligible.

2. Loans are available on properties of from one to four units.

3. U.S. citizenship is not required; resident aliens are eligible.

4. The FHA establishes a range of maximum loan amounts for one-to four-unit dwellings that vary according to area. For example, the California maximum loan on a single-family dwelling is $261,609. The cost of housing in a particular area determines the maximum loan amount, which is adjusted periodically to keep up with property values.

Figure 5-1: Freddie Mac Maximum Loan Amounts In High-Cost Areas (2002)

No. of Units Loan Amount

1 $261,609

2 334,863

3 404,724

4 502,990

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