Approved FHA lenders continue to finance 96.5% of home purchase loans with affordable payments because FHA rates are still really good. The 203(b) is a FHA home loan program with a fixed interest rate. The 203 is a popular FHA home loan with first time home buyers. The 203(b) FHA loan keeps your down payment to a minimum. Your closing costs may also be minimized, so ask your loan officer. The 203(b) FHA loan will finance up to 96.5% loan to value, so you may only need 3.5% down to buy a home.