TYSONS, Va.,– PenFed Credit Union is reporting it has furthered its commitment to bring more of its members home with the offering of Federal Housing Administration (FHA) loans.
PenFed has 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 EVP 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, the credit union said.