Homeownership is closer than you think.
An FHA loan is a mortgage insured by the Federal Housing Administration — a government agency whose mission is to help more Americans achieve homeownership. Because the government backs the loan, lenders can offer more flexible terms than they could with a conventional mortgage. That means lower down payment requirements, more lenient credit score standards, and a more accessible path into your first home. If you've been told homeownership is out of reach, an FHA loan might be the door you've been looking for.
Why buyers love FHA loans
FHA loans were built with accessibility in mind. Here's what makes them stand out for buyers who need a little more flexibility.
Low down payment
Put down as little as 3.5%, making it much easier to get into a home without years of saving.
Flexible credit standards
Qualify with a credit score as low as 580 — or even lower in some cases with a higher down payment.
Government-backed security
FHA insurance protects lenders, allowing them to offer better terms to borrowers who might not qualify for conventional loans.
Your first home is closer than you think.
Our online mortgage application is fast and simple. Answer a few questions, and our mortgage team can guide you to the loan that is best suited for you.
Questions? Contact our mortgage team at 405-685-6200 x660, or mortgage@usecreditunion.org
What is mortgage insurance, and do I have to pay it with an FHA loan?
Yes. FHA loans require two types of mortgage insurance: an upfront mortgage insurance premium (UFMIP) paid at closing, and an annual mortgage insurance premium (MIP) included in your monthly payment. This insurance is what allows lenders to offer such flexible terms. The upfront premium can be rolled into your loan, so you don't have to pay it out of pocket. Unlike conventional PMI, FHA mortgage insurance typically stays for the life of the loan if you put down less than 10% — something to factor into your long-term planning.
Is there a limit to what I can borrow with an FHA loan?
Yes. FHA loan limits vary by county and are updated annually by the Federal Housing Administration. They're based on local home prices, so limits tend to be higher in higher-cost areas and lower in more affordable markets. If the home you're interested in exceeds the FHA loan limit for your area, you may want to explore a conventional loan or a jumbo mortgage. Your loan advisor can tell you the exact limit for your county and help you find the best fit.
Can I refinance out of an FHA loan later?
Absolutely, and many FHA borrowers do exactly that once they've built up equity and improved their credit. Refinancing into a conventional loan can eliminate the mortgage insurance requirement, which may lower your monthly payment. You can also do an FHA Streamline Refinance, which is a simplified process for existing FHA borrowers who want to get a lower rate without a full application. Your loan advisor can help you figure out the right time and refinance for your situation.
Do I have to be a first-time homebuyer to use an FHA loan?
No. Despite being especially popular with first-time buyers, FHA loans are available to anyone who meets the eligibility requirements, regardless of whether they've owned a home before. That said, you can only use an FHA loan for a primary residence, and you generally can't have two FHA loans at the same time. If you're a repeat buyer looking for flexible credit terms or a low down payment, an FHA loan is still worth exploring.