What type of property can a borrower purchase with an FHA insured loan through the 203B program?

The FHA 203B program is designed to help borrowers purchase residential properties with more favorable loan terms, including a lower down payment and more flexible credit score requirements. Under this program, the borrower can indeed purchase a duplex as long as they occupy one of the units. This is beneficial because it allows the borrower to generate rental income from the second unit, which can assist in covering mortgage payments and other living expenses.

This program is specifically tailored for residential properties, which is why options that suggest commercial properties, vacant land, or only single-family homes do not align with the purpose of the 203B program. Single-family homes can be financed, but the option for purchasing a duplex where the borrower lives in one unit provides additional flexibility in terms of housing and financial strategy. Thus, the correct answer highlights the program’s inclusive nature regarding multi-family residences that meet certain occupancy requirements.