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FHA Fixed Mortgage
Take the first steps to owning your dream home.
Features
Owning a home is the American dream but saving for the down payment can sometimes be challenging. ECU offers Federal Housing Administration (FHA) loans with lower down payment options for those who may not be able to afford a conventional down payment.
- Finance 96.5% of the purchase price
- Seller can contribute up to 6% toward closing costs
- Monetary gifts allowed for closing costs
- No prepayment penalty
Learn More
Calculators
Purchasing or refinancing a home can be stressful, leaving you asking lots of questions! Should you buy or rent? Will refinancing save you money? How much will your monthly payment be? Check out our calculators designed to answer these questions and more!
Compare Mortgages
With so many choices, how do you know which loan is right for you?
See the chart below to see the unique features of each. For additional information, please give us a call at 800-999-2328.
| Loan Type | Maximum Loan to Value | Term | Mortgage Insurance | Prepayment Penalty |
|---|---|---|---|---|
| Fixed & Adjustable Rate Mortgages | 97.00% | 15/20/30 year | Yes | No |
| Federal Housing Administration (FHA) | 96.50% | 15/30 year | Yes | No |
| USDA | 100.00% | 30 year | Yes | No |
| First Time Home Buyers Program | 105.00% | 30 year | No | No |
| ECU 100 Mortgage | 100.00% | 15/20/30 year | No | No |
| Veterans Administration (VA) | 100.00% | 30 Year | Yes | No |
| ECU Purchase Plus | 105.00% | 15/30 Year | No | No |
FAQs
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). They allow down payments of 3.5% for credit scores of 640+. However, borrowers must pay mortgage insurance premiums, which protect the lender if a borrower defaults.
Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one, the Upfront Mortgage Insurance Premium (UFMIP), is paid in full upfront, or it can be financed into the mortgage and the other, an Annual MIP, is a monthly payment.
The Federal Housing Authority sets maximum mortgage limits for FHA loans that vary by state and county. Please visit www.hud.gov for limits in your area.
The credit score and down payment amounts are just two of the requirements of FHA loans. For more information on FHA loan requirements, please visit www.hud.gov.
Typically, an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment, and you can have less-than-perfect credit. A down payment of 3.5% is required for FHA loans for maximum financing. Borrowers must have a minimum FICO score of 640 to qualify. However, having a credit score that’s lower than 640 doesn’t necessarily exclude you from eligibility. You need to have a minimum down payment of 10%.