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PHONE: 215-934-3500 or 800-832-PFCU

ABA Routing # 236084298

FHA Mortgages

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.

What is an FHA Loan?

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 down payments may be 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 of 3.5%
  • Origination fees are typically higher than conventional loans
  • 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 & FL.
  • Can be used to purchase a home or re-finance

FHA Loan Requirements

  • Proof of Identification and reliable income stream
  • The property must be appraised by an FHA-approved appraiser
  • Mortgage insurance is required.
  • Borrower must not be behind on income taxes or federal student loan taxes.

Minimum Credit Score

  • Minimum credit score can vary by loan program. FHA loans may be ideal for those with fair credit. While a minimum credit score of 580 is typically needed, other borrowers may still qualify for an FHA Mortgage, but with certain exceptions such as a higher down payment / higher rates. Still, an FHA mortgage is one of the best options for financing a home with a low credit score.

Down Payment

  • FHA Loans require a minimum down payment of 3.5%. These funds do not have to belong to the borrower. The down payment may come from family members in the form of a gift.

Loan Limit

FHA Loan Rates

  • Loan rates are determined by the FHA lender uniquely for each individual borrower based on many factors including credit score and loan to value.

Pre-Qualification and Pre-Approval

  • Pre-qualifying happens during your initial conversation with a mortgage representative. They will discuss a few key figures to determine if you qualify to apply for a loan, and perform an underwriting review.
  • Pre-approval is the final step before you begin searching for a home. In the pre-approval process, the lender will perform an analysis to verify some of the figures discussed in your pre-qualification.

    These factors include:

    • Credit Score
    • Earnings
    • Debt
    • Assets

    Documents that may be required for pre-approval:

    • Social Security card
    • W2 Statements
    • Pay stubs
    • Employment verification
    • Two months of bank statements

How to Apply

  • To apply for an FHA Loan with PFCU, you can begin an application online or speak with one of our Mortgage Professionals at 215-934-3500.

Apply for a
FHA Mortgage Loan

* If you are applying for a pre-approval, purchase or refinance, an application deposit will be collected to cover the cost for the credit reports. This fee will be credited toward closing costs. We will accept your application online even if you are not currently a member. 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. Conventional First Mortgages are issued in PA, NJ, DE, MD and FL only. Conventional First Mortgage rates quoted are for our standard programs. Cash out refinance transactions with LTV over 70% will be .75% higher than rates quoted. Paying off a home equity loan is considered cash out. Offer of credit is subject to credit approval.

FHA Loans vs. Conventional Mortgages

Based on your needs and financial status, you may qualify for a conventional mortgage, FHA Mortgage, or both. So, which is better for you? Review the chart below to understand the key differences between a Conventional Mortgage and an FHA Loan, including the requirements, down payment, and rates.

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National Association of Federal Credit Unions 
PFCU is a proud member of the National Association of Federal Credit Unions
National Credit Union Administration 
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
Excess Share Insurance Corporation 
Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.
Equal Housing Lender 
We do Business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

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Please note that the amount of money contained in your investment accounts are considered non-deposit products and therefore, are not NCUA insured, not credit union guaranteed, may lose value, are not guaranteed by any government agency. Since they are not a deposit of the Philadelphia Federal Credit Union, investment accounts do not qualify for Excess Share Insurance (ESI). Securities, Financial Planning and Insurance products are offered through LPL Financial, and its affiliates, Member FINRA, SIPC. LPL Financial and Philadelphia Federal Credit Union are independent entities.