FHA Loans

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). These loans are designed to make it possible for more people to purchase a home with lower minimum down payments and more flexible credit requirements than other conventional mortgage loan types.

To qualify for the FHA loan program, borrowers typically require a 3.5% down payment, steady income, and manageable debt. The financed home must be a primary residence and must pass an FHA property appraisal.

There isn’t a set income to qualify for an FHA loan. As long as you can show that your income is reliable and enough to support your mortgage payment, you may qualify.

You can be disqualified from an FHA loan if you are unable to make a down payment of at least 3.5%, you do not have a steady income, your debt-to-income ratio is too high, or your credit score is too low.

FHA loans require a down payment of at least 3.5% of the value of the property being financed.

FHA loans require mortgage insurance premiums to help protect the lender in the event of default. This includes an upfront mortgage insurance premium (UFMIP), which can typically be financed into the loan amount, and an annual mortgage insurance premium that is paid monthly.

This insurance structure allows FHA loans to offer lower down payment requirements and more flexible credit guidelines, making homeownership accessible to a broader range of borrowers.

Yes, at TVFCU, you can apply for your FHA mortgage using our secure online application.  In this online application, you’ll be able to submit basic financial information, upload documents, and start the pre-approval process from anywhere. Final approval will still require further verification.

When comparing an FHA vs conventional loan, the main differences are down payment requirements, credit flexibility, and mortgage insurance:

• FHA loans are government-insured and often allow lower down payments and more flexible credit guidelines.
• Conventional loans are not backed by the government and usually require stronger credit, and may offer lower long-term mortgage insurance costs for qualified borrowers.

Yes, you may be able to find down payment grants for FHA loans the same way you would find them for any other mortgage type. Grants may be available through state, local, or nonprofit down payment assistance programs. These programs can often be used with FHA financing if eligibility requirements are met and the lender approves the assistance.