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Mortgage Loans

All mortgage programs are not the same, and it’s important to understand the differences. Whether you're buying your first home, making your next move or simply refinancing, Foothill Credit Union has the terms, features and options designed to make getting a mortgage easier. Let us help you understand all the choices you have when it comes to a home mortgage. (NMLS# 681615)

FHA and VA Loans

Veteran's Affairs (VA) loans and Federal Housing Administration (FHA) loans are two types of government-secured mortgage loans. FHA loans are secured through the FHA, or Federal Housing Administration, while VA loans are secured through the VA, or Veterans Administration. Both of these loan programs involve lower costs and lower down payments than traditional mortgages, therefore helping place more people into homes.


FHA Loans

  • Lower Down Payment: Traditional loans require a minimum of between 5 and 10 percent down, while FHA requires as little as 3.5 percent down. Low down payments allow members to buy homes and start building equity sooner.

  • Gift funds accepted for 100 percent of the down payment (relatives can help you!)

  • Finance Mortgage Insurance: The upfront mortgage insurance premium can be financed.

  • Flexible Qualification Requirements: FHA mortgages are insured by the federal government. As such, FHA debts-to-income requirements are more flexible, often higher than Conventional debts-to-income requirements, which allow more members to qualify. Non-occupied co-borrower income can used to qualify––a great way parents can assist their children to gain home ownership!

  • Liberal Credit History: FHA guidelines are less stringent on credit blemishes. A borrower can qualify for a FHA mortgage two years after bankruptcy and three years after foreclosure, as long as there is clean credit within that time frame. Minimum credit score (FICO) is 640.

  • Higher Seller Contributions: There is a higher allowable seller contribution on FHA loans - 6 percent as opposed to 3 percent for Conventional loans at 95 percent loan-to-value (LTV), which minimizes members’ out of pocket expenses.

  • Assumability: FHA loans are assumable for credit qualified applicants.

FHA loans are open to anyone who meets FHA credit qualifications, which are more flexible than those for conventional loans. For more information about qualifications, contact our home loans experts at 626-445-0950.

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VA Loans

  • No Down Payment - $0 Down: A VA mortgage is one of the few, if not the only, remaining no down payment mortgage programs and is only available to eligible Veterans––active duty, reservist, retirees, and surviving spouses in some cases. The VA mortgage benefit does not expire; veterans may “reuse” the benefit!

  • No Monthly Mortgage Insurance Payment: Even with 100 percent financing, a VA mortgage does not have a monthly mortgage insurance payment, and the upfront funding fee can be financed.

  • Flexible Qualification Requirements: VA mortgages are guaranteed by the government, so VA guidelines are more flexible than many other programs.

  • Liberal Credit History: Like FHA guidelines, credit history requirements are less stringent than Conventional guidelines, with an even lower minimum FICO score of 620!

  • Higher Seller Contributions: Seller can pay closing costs up to 4 percent in addition to discount points and prepaids. Veterans have fewer allowable closing costs to pay than buyers typically pay in FHA or Conventional Settlement closings.

  • Assumability: VA loans are assumable to all credit worthy buyers (non-vets ok).

VA loans are open to anyone who meets VA credit qualifications, which are more flexible than those for conventional loans. For more information about qualifications, contact our home loans experts at 626-445-0950.

Get Started» 

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