PenFed Credit Union, the nation’s second-largest federal credit union and the largest credit union mortgage originator, furthered its commitment to bring more of its members home with the offering of Federal Housing Administration (FHA) loans. In April, PenFed received Direct Endorsement authority to originate FHA loans from the U.S. Department of Housing and Urban Development.
“This recent approval from HUD now gives PenFed the ability to make homeownership possible for more of our members who otherwise may not be able to get financing,” said PenFed Executive Vice President and President of Mortgages Winston Wilkinson. “Many first-time homebuyers, especially in pricier markets, can use FHA loans as a solution that allows them to enjoy the benefits of home ownership.”
An FHA loan increases home affordability for PenFed’s members because it offers the ability for a down payment of only 3.5% and can accommodate those with credit scores as low as 620. Additionally, FHA borrowers often enjoy lower interest rates than borrowers for conventional mortgages.
Those looking to learn more are encouraged to visit PenFed’s Learning Center, where you can find articles detailing the Benefits of an FHA Mortgage and the Top 10 Advantages of an FHA Loan – Especially with a Credit Union.