The FHA 203(b) program provides mortgage insurance to lenders to protect against borrower default and is commonly used to finance the purchase of new or existing one- to four-family housing.
Mortgage Guaranty Insurance Corporation (MGIC) is a company that provides mortgage insurance, which protects lenders from losses when a borrower defaults on a mortgage loan. MGIC ensures that lenders can recover the money if a borrower does not fulfill their loan obligation.
