FHA LOANS

Discover why so many first time homebuyers love FHA loans

  • 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

Disclosures Print Icon Print

1For eligible fixed rate, ARM, VA and FHA loans PenFed offers to all members who submit a completed home purchase mortgage application on or after March 1, 2020. Members can receive the lender credit upon closing with PenFed, subject to qualification and approval. For loans $0-$199,999 the lender credit will be: $500. For loans $200,000-$699,999 the lender credit will be: $1,000. For loans $700,000 and up the lender credit will be: $2,500. Pre-Approvals and refinance applications are not eligible for the lender credit. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product. Please contact your PenFed Mortgage Loan Officer for more details. The lender credit is available for all funded purchase mortgages in all states, including District of Columbia, Puerto Rico and Guam.

2Other fees may apply, such as discount points to buy down your rate.

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