A Low Down Payment Option

Federal Housing Administration (FHA) loans are a great choice for buyers who don’t have a sizable down payment or for those who are still working on their credit score.1 Maximum loan amounts are determined by the property location.

Loan Features

  • Minimum 3.5% Down Payment

    Lots of loans require up to a 20% down payment. These loans only require 3.5% down so you won’t have to wait as long to save and can buy your home sooner.

  • Seller Contribution of Up to 6%

    The seller is allowed to contribute up to 6% of the value of the home toward your closing costs, saving you money.

  • Mortgage Insurance Required

    Mortgage insurance is required on all FHA loans. This is insurance that protects the lender in the event that you fall behind on your payments, allowing you to qualify for a loan that you might otherwise be unable to get.

Rates2

Term Interest Rates As Low As Discount Points APR As Low As
15 Year 4.000% 0.250 5.235%
30 Year 4.125% 0.500 5.277%

The interest rate above shows the option of purchasing discount points to lower a loan's interest rate and monthly payment. One point amounts to 1% of the loan amount and is paid at closing. Points don't always have to be round numbers. Purchasing 1.5 points would cost $3,000 on a $200,000 mortgage.

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Use RealtyPlus® to get matched with a top-performing real estate agent in your area and earn cash back, too. Exclusive for Navy Federal members.4

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Disclosures

1 Federal Housing Administration (FHA) loans require a minimum of 3.5% down payment. FHA loans are subject to an up-front mortgage insurance premium of 1.75% of the loan amount, in addition to a monthly mortgage insurance premium, depending on the loan term and loan-to-value (LTV).

2 This rate offer is effective 11/20/2019 and subject to change. Rates are based on creditworthiness, loan-to-value (LTV), occupancy and loan purpose, so your rate and terms may differ. All loans subject to credit approval. Rates quoted require a loan origination fee of 1.00%, which may be waived for a 0.25% increase in interest rate. Many of these programs carry discount points, which may impact your rate.

3 An FHA loan of $250,000 for 15 years at 4.000% interest and 5.235% APR will have a monthly payment of $1,849.
An FHA loan of $250,000 for 30 years at 4.125% interest and 5.277% APR will have a monthly payment of $1,212.
Taxes and insurance not included; therefore, the actual payment obligation will be greater.

4 The cash-back bonus is offered in most states and is available for individual sales and purchases of property; offer limited to one cash-back bonus per property with no limit on the amount of times you may use the program. In some states, a gift card or commission credit at closing may be provided in lieu of the cash-back bonus. The program is not available in IA or outside the U.S. Cash-back bonus is not available in AK, LA or OK. In KS and TN, a gift card with preloaded points that are ready for spending at specified retail establishments after closing will be issued. State regulations in KS limit the dollar amounts and the type of incentive. In MS, NJ, and OR, a commission reduction may be available at closing. Please check with the program coordinator for details. This is not a solicitation if you are already represented by a real estate broker. The cash-back bonus is only available with the purchase or sale of your home through the use of a program-referred and -approved real estate agent. The size of your cash back award depends on the value of the property you are buying or selling. Obtaining the full $8,000 cash back award requires transacting in a property valued at $1.75 million or greater. To calculate the size of you potential cash back, please visit navyfederal.org/realtyplus. All real estate transactions are negotiable. Contact RealtyPlus for terms and conditions. Standard listing fees apply.