PenFed Credit Union furthered its commitment to help more of its members become homeowners by offering 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, according to a release from PenFed Credit Union.
“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,” PenFed Executive Vice President and President of Mortgages Winston Wilkinson said in the release. “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 can make homes more affordability for PenFed’s members because it offers the ability for a down payment of only 3.5 percent and can accommodate those with credit scores as low as 620. Additionally, FHA borrowers often enjoy lower interest rates than borrowers for conventional mortgages.
Established in 1935, Pentagon Federal Credit Union (PenFed) is America’s second-largest federal credit union, serving over 2.8 million members worldwide with $35 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services.