FHA Mortgage | BCCU

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A Federal Housing Administration (FHA) insured mortgage is backed by the full faith and credit of the United States government. FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and provides a trusted and consistent source of funding for many borrowers.



In order to be eligible for an FHA-insured mortgage, a borrower must:

  • Occupy the property as the principal residence
  • Possess a valid Social Security Number
  • Have a two-year employment history
    • School and military service count towards this two-year requirement
  • Not be delinquent on any Federal debt such as a student loan or other FHA-insured mortgage
  • Meet flexible credit requirements


  • FHA requires their appraisers to be FHA Approved and verify the home meets "HUD Minimum Standards"
  • FHA adopted the industry appraisal standards permitting the use of the Fannie Mae appraisal forms with no additional specialized documentation
  • FHA allows the seller to contribute up to 6% of the sales prices towards the borrowers closing costs and pre-paid items
  • Debt to Income ratios are more flexible for certain FHA mortgages than most conventional mortgages
  • FHA does not require a minumum credit score, but most lenders do! Check with a Bellwether Mortgage Loan Officer for more details
  • Buyers are only required to contribute 3.5% towards the transaction, of which all can be a gift, down payment assistance, or their own funds. Restrictions can apply
  • There are no prepayment penalties on FHA-insured mortgages
  • US citizenship is not required but, for those who are not citizens, they must be lawful permanent or non-permanent resident aliens with a valid Social Security Number