Rates starting at % (APR %)¹

  • Only 3.5% Down Payment
  • Credit scores as low as 620
  • Appealing low interest rates

What is an FHA loan?

FHA loans are backed by the US Government. The interest rates are low, and you only need a 3.5% down payment. FHA loans have less stringent credit guidelines compared to conventional mortgages. First-time homebuyers tend to choose this type of loan because it's easier to qualify for.

What is an FHA Fixed-rate Mortgage?

With an FHA fixed-rate mortgage, your interest rate will remain the same during the term of the loan, which makes budgeting much easier. The only time your monthly payment will change is if your property taxes or insurance does.

Mortgage Knowledge Center

What is an FHA Loan?
Benefits of an FHA Mortgage
Top Ten Advantages of an FHA Loan - Especially with a Credit Union


How Do I Get an FHA Loan?

What you need to qualify:

  • Satisfactory credit score (typically 620 or higher)
  • Proof of income - typicaly 1 - 2 months of paystubs
  • At least 1 year of W2s
  • Available for purchase or refinancing a primary residence only
  • Property appraisal from an FHA-approved appraiser
  • Current debt information (auto, alimony, credit card, etc.)
  • Acceptable debt-to-income ratio (DTI)

Mortgage Knowledge Center

What are the Requirements for an FHA Loan?
Tips on how to get an FHA Loan

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Free eBooks Download

  • Buying a Home
  • Selling your Home
  • Refinancing Your Home


1Rates are updated daily at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 96.5%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.