FHA Mortgage

FHA loans are backed by the Federal Housing Administration and Power Financial Credit Union is an FHA approved lender. This means we can offer loans to people who may not qualify for a conventional mortgage as long as you meet the minimum FHA loan requirements.

• You may qualify and get a competitive annual percentage rate (APR) even with lower credit scores or lower income
• You need a down payment of just 3.5% if you have good credit (or 10% if you have lower credit)
• If you have lower credit scores, FHA loan rates may be lower than what you would qualify for with a conventional loan
• You can use gift funds to help with down payments or closing costs
• Get a co-applicant with great credit or higher income to help secure better interest rates, terms, and conditions

FHA loans aren't one size fits all – you can choose from a range of mortgage types. For example:

Adjustable-rate mortgages (ARMs) offer a lower starting rate and payment, which is fixed for a certain number of years and then adjusts with the markets. When rates come down, your payments come down!

A fixed-rate loan offers a steady rate and payment through your entire loan term, with a choice of 15, 20, or 30 years. If rates come down in future, you may refinance to get a lower rate and payment.

Streamline refinancing is a tool that people with FHA loans can use to refinance your loan, using the same paperwork you already supplied for your original loan. This makes the process quick and simple.

There is also a FHA 203 program that offers funding for repairs, improvements, and upgrades when you have an FHA loan.

Because the federal government insures FHA loans, the FHA wants to know that the house you plan to buy meets health and safety guidelines and represents a good investment for you. Here's what the appraisers will find out:

• The market value of the property to make sure it matches the selling price
• The physical condition of the property and any repairs needed
• Whether the property is free of hazards, odors, physical defects, or noise
• How long the property is expected to last and that this justifies a long-term mortgage
• The site of the property, the topography of the location, suitability of soil, easements, encroachments and the areas adjacent to the property
• The livability of the home, including the above-ground and basement living areas, the overall structure and functionality of the property

Payment requirements may vary between $300 and $600.

Yes, you will likely need to pay closing costs. These fees are a necessary part of the closing process of any home loan. Depending on your mortgage lender, you may be able to roll some of your closing costs into your loan if you don't have the money upfront.

Closing costs may include:

• Underwriting or processing fee
• Appraisal or inspection fee
• Title registration and insurance
• Property taxes

No, PMI is a premium paid for conventional loans that aren't backed by the government. But you may need to pay an upfront mortgage insurance premium (MIP) for your FHA loan, plus an annual insurance premium.

These fees help fund the FHA loan program so more people can become homeowners.

Any of our existing credit union members are welcome to apply for an FHA loan or it takes just a few minutes to become a member.

Our membership consists of those who: live, work or go to school in Broward, Charlotte, Collier, Lee, Martin, Miami-Dade, Monroe, Palm Beach County, Hillsborough, Manatee, Pinellas, Sarasota, or St. Lucie counties.

We're also proud to offer membership to our Select Employee Groups. Employees and members of these organizations are welcome to join no matter where you are located:

• Ryder System, Inc.
• FPL/NextEra Energy
• Bonefish & Tarpon Trust

FHA Loan Requirements

• FICO® score at least 580 = 3.5% down payment.
• FICO® score between 500 and 579 = 10% down payment.
• MIP (Mortgage Insurance Premium ) is required.
• Debt-to-Income Ratio < 43%.
• The home must be the borrower's primary residence.
• Borrower must have steady income and proof of employment.