FHA loans are backed by the Federal Housing Administration and are designed to help buyers with low down payments and flexible credit requirements afford the purchase price for a new home. Conventional loans from most mortgage lenders require higher credit scores and larger down payments.

A 30-year fixed-rate FHA loan works just like a conventional 30-year loan. Your monthly payments remain stable over the life of the loan, providing predictability and stability for long-term financial planning.

There are two streamline refinance options for existing FHA loans, subject to eligibility. The credit-qualifying option requires you to provide income documentation and for the lender to conduct a credit check and calculate your debt-to-income (DTI). The non-credit qualifying option may not require the lender to verify income and while there is a credit check, fewer factors may be considered. Generally, an appraisal will not be required for either option. A cash-out refinance option exists for current FHA loans and non-FHA loans. 

Unlike conventional loans, where the amount that sellers can contribute to closing costs is often limited at higher loan-to-values (LTV), FHA loans allow sellers to contribute up to 6% of the purchase price to your closing costs, easing the burden of up-front costs you bear when purchasing a home.

Provided you meet income eligibility and other requirements, an FHA loan allows first-time and repeat homebuyers to access a high-quality 30-year fixed mortgage with a down payment as small as 3.5%.

Buyers also get more flexible underwriting rules, including more forgiving credit score requirements and more lenient requirements on debt-to-income ratios. Talk to an APGFCU mortgage specialist to determine if you qualify.

APGFCU membership is open to anyone who lives, works, worships, volunteers, or goes to school in Harford County, Cecil County, Baltimore County, or Baltimore City, Maryland.