The American dream can be yours
Everyone dreams about owning a home, a place to settle down and raise a family and to call your very own. But not everyone knows how easy it is to qualify. If you are a first-time homebuyer, have less than perfect credit or are looking for a low down payment loan, an FHA loan may be right for you.
An FHA mortgage is a government-backed loan. Insured by the Federal Housing Administration (FHA), an FHA loan has less stringent credit requirements than a conventional loan, and lower down payments (sometimes as low as 3.5%). With historically low rates, now is a great time to take steps toward homeownership.
Key Features and Benefits
- Down payments as low as 3.5%
- Fixed or adjustable rate loans are available
- Seller can assist with up to 6% of purchase price toward closing costs
- All funds for your closing costs can be from a gift
- Non-traditional credit considerations (on-time rent, utility and insurance payments)
- Available for primary residences in PA, NJ, DE & MD.
| ||Conventional Mortgage ||FHA Mortgage |
- Must have available funds.
- All of the funds can be a gift from a family member.
Minimum Credit Score
|Varies by loan program; more stringent credit requirements ||Varies by loan program; less stringent credit requirements |
|Rates are determined by the lender based on guidelines/credit criteria. ||Rates are determined by the lender based on guidelines/credit criteria. |
|Private Mortgage Insurance is required with less than 20% down. ||Upfront mortgage insurance premium can be added into the loan + monthly mortgage insurance premium. |
|Can be primary, investment, or secondary residence ||Primary residence only |
|Seller can assist with closing cost up to 6%. ||Seller can assist with closing cost up to 6%. |
|In all 50 states ||PA, NJ, DE, & MD |
| 10 - 30 years (5 year increments) ||Up to 30 years |
|Up to $417,000 ||Loan limits vary based on # of units, county, etc. |
|Fixed Conventional & 5/1 ARM (Adjustable Rate Mortgage) ||Fixed & ARM Programs |
To find out how much you can afford for your next mortgage, visit our mortgage loan calculator.
Talk with a mortgage professional.
Call our Mortgage Department at 215-934-3505 to talk with a PFCU Mortgage Professional.
Easy to apply
*Available in PA, NJ, DE & MD. Not available in FL. If you are applying for a purchase or refinance, an application fee will be collected to cover the cost for a credit report. This fee will be credited toward closing costs. We will accept your application online even if you are not currently a member. However, all borrowers on the application will be asked to qualify for membership. Prior to your loan closing, you will be asked to open a qualifying account. Residency restrictions apply.