FHA Loans

A low down payment option that can make home ownership more affordable.

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Home Ownership is Within Reach

An FHA (Federal Housing Administration) loan is a perfect mortgage option for first-time home buyers who could benefit from a low down payment. FHA loans can help you reach your homeownership goals even if you have less than perfect credit or minimal equity in your current home.

An FHA Loan Provides

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Lower down payment

Saving for a large down payment for your first home is hard. PenAir can help make home buying possible even when you haven’t been able to stow away a big chunk of change.

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Lower credit score minimums

Building up great credit takes time, but you may not be able to wait any longer. PenAir mortgages are more flexible for those with less than perfect credit scores.

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Higher debt-to-income ratio accepted

Just because your debt-to-income ratio is on the higher side doesn’t mean you can’t qualify for a home loan with PenAir. We’ll work with you and provide expert advice to get you where you need to be.

Unlock your dream home with the best mortgage rates tailored for you!

Contact our dedicated Mortgage Team today for personalized quotes, competitive rates, and the expert assistance to make your homeownership journey a reality.

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Crunching the Numbers

What to Expect When You Finance With PenAir

Your experience will vary depending on the type of mortgage loan you apply for. However, buying your home with PenAir generally goes something like this:

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Compare loan types, rates and terms

Review your mortgage choices, play around with PenAir’s mortgage calculators, and even contact a PenAir Mortgage Expert to find the best option for you.

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Apply for your loan

It’s a lot easier than you think. Our online loan application is a fast and easy way to get your mortgage loan process started.

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Provide supporting documents

We provide secure online and offline options to send required documents to our underwriters. We know this is the boring part, but our Mortgage Team will make it as easy as possible.

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Get your pre-approval

This step lets you know what your approvable purchase and finance amount is, plus the rate and potential monthly payment for that amount. Let the house hunt begin.

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Lock in your rate and get final approval

If you are refinancing, this step can take place right after pre-approval. For a home purchase, the loan will move toward closing once you have had an offer accepted and the property details are submitted to our team.

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Review final loan documents

Once we have the required property information in hand and other document requirements have been met, we can generate the final loan documents for review before setting a closing date.

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Close on your new home

Now for the fun part. Once a closing date is set, loan documents will be delivered to the closing agent for signing and financial transactions will be coordinated to complete the process. And just like that — you’re home.


Need a little more info? See if this is what you’re looking for.

An FHA loan is a type of government-backed mortgage loan that can allow you to buy a home with looser financial requirements. You may qualify for an FHA loan if you have debt or a lower credit score.

An FHA loan works much like a conventional mortgage, from the borrower’s point of view. You won’t get a loan from the Federal Housing Administration. You’ll apply for an FHA loan through an FHA-approved lender. The FHA insures the loan, which is why lenders’ requirements for FHA borrowers tend to be more lenient.

FHA loans are not for first-time buyers only. First-time and repeat buyers can finance houses with FHA mortgages.

A conventional loan is often better if you have good or excellent credit because your mortgage rate and PMI costs will go down. But an FHA loan can be perfect if your credit score is in the high-500s or low-600s. For lower-credit borrowers, FHA is often the cheaper option.

PenAir offers mortgage loans for every phase of life.

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© 2023 PenAir Credit Union. NMLS# 413053. Standard credit qualifications and other terms and conditions apply. Loans subject to credit approval. Call 1.877.4PENAIR for credit costs and terms.

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