FHA Mortgage Loans

Buying a home is a significant milestone, and at People Driven Credit Union, we’re committed to helping you achieve your dream of homeownership. Our FHA Mortgage Loans offer flexible terms and lower down payment options, making it easier for you to purchase your first home or refinance your existing mortgage. An FHA Mortgage Loan is a government-backed loan insured by the Federal Housing Administration (FHA). Designed to help low-to-moderate-income borrowers, these loans are particularly beneficial for first-time homebuyers or those with less-than-perfect credit.

Membership eligibility requirements apply, with approval subject to application, credit, and property considerations.

Benefits of an FHA Mortgage Loan

Lower Down Payment: With an FHA loan, you can put down as little as 3.5% of the purchase price, making homeownership more accessible.

Flexible Credit Requirements: FHA loans are designed to help borrowers with lower credit scores. Even if your credit history isn’t perfect, you may still qualify.

Competitive Interest Rates: Benefit from interest rates that are often lower than those available with conventional loans.

Assumable Loan: FHA loans can be transferred to a new buyer, which can be a significant selling point if you decide to move.

Refinancing Options: FHA loans offer streamlined refinancing options, allowing you to reduce your interest rate or adjust your loan term with less hassle.

Why Choose People Driven Credit Union for Your FHA Loan?

At People Driven Credit Union, we understand that every homebuyer’s situation is unique. Our team of experienced mortgage specialists is dedicated to providing personalized service to help you find the best mortgage solution for your needs.

Expert Guidance: Our mortgage specialists have extensive knowledge of FHA loan requirements and will guide you through every step of the application process.

Member Focused: As a member-owned credit union, we prioritize your best interests and strive to offer competitive rates and low fees.

Local Market Knowledge: We have a deep understanding of the local housing market and can offer valuable insights to help you make informed decisions.

Frequently Asked Questions

Who is People Driven Credit Union's Mortgage Specialist?

Meet Our PDCU Mortgage Specialist

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

What is an FHA Mortgage Loan?

An FHA Mortgage Loan is a home loan insured by the Federal Housing Administration (FHA), designed to help low-to-moderate-income borrowers qualify for financing. These loans are particularly beneficial for first-time homebuyers or those with lower credit scores.

What are the benefits of an FHA Mortgage Loan?

Lower Down Payment: FHA loans allow for a down payment as low as 3.5% of the purchase price.
Flexible Credit Requirements: Borrowers with lower credit scores may still qualify for an FHA loan.
Competitive Interest Rates: FHA loans often offer lower interest rates compared to conventional loans.
Assumable Loan: The loan can be transferred to a new buyer if you decide to sell your home.
Refinancing Options: Streamlined refinancing options are available to reduce your interest rate or adjust your loan term.

Who is eligible for an FHA Mortgage Loan?

Eligibility for an FHA loan generally depends on your credit score, income, debt-to-income ratio, and the amount of down payment you can make. FHA loans are aimed at helping low-to-moderate-income borrowers and those with less-than-perfect credit.

What is the minimum credit score required for an FHA loan?

The minimum credit score for an FHA loan is typically 580 with a 3.5% down payment. Borrowers with credit scores between 500 and 579 may still qualify with a higher down payment of 10%.

How much can I borrow with an FHA Mortgage Loan?

The amount you can borrow with an FHA loan depends on the FHA loan limits in your area, which vary by county. These limits are updated annually by the FHA.

What are the down payment requirements for an FHA loan?

The minimum down payment for an FHA loan is 3.5% of the purchase price for borrowers with a credit score of 580 or higher. Borrowers with credit scores between 500 and 579 are required to make a down payment of at least 10%.

Can I use an FHA loan to buy a fixer-upper?

Yes, the FHA offers a loan program called the FHA 203(k) Rehabilitation Loan, which allows you to finance both the purchase of a home and the cost of its repairs through a single mortgage.

What types of properties can be financed with an FHA loan?

FHA loans can be used to finance a variety of properties, including single-family homes, multi-family properties (up to four units), condos, and certain manufactured homes.

What are the costs associated with an FHA Mortgage Loan?

In addition to the down payment, FHA loans require mortgage insurance premiums (MIP). There is an upfront MIP, typically 1.75% of the loan amount, and an annual MIP, which is paid monthly and varies based on the loan term and amount.

How can I apply for an FHA Mortgage Loan with People Driven Credit Union?

Apply online or contact our mortgage specialist, Michelle Dzon, who will guide you through the application process, help you understand your options, and determine your eligibility. Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

What is private mortgage insurance (PMI), and when is it required?

Private mortgage insurance, or PMI, is insurance that helps protect the lender if a borrower stops making payments on a conventional mortgage loan. PMI is typically required when your down payment is less than 20% of the home’s purchase price or original value.

When PMI is usually required

PMI is most commonly required on a conventional mortgage when you put less than 20% down. It increases the cost of the loan, but it may also help you qualify for a mortgage sooner if you do not have a larger down payment.

When PMI may be removed

In many cases, you can ask to remove PMI once your loan balance reaches 80% of the home’s original value and you meet the lender’s requirements. In general, PMI is automatically terminated when your loan balance is scheduled to reach 78% of the home’s original value, as long as your loan is current.

Need help?

If you have questions about PMI or your mortgage options, connect with a mortgage loan officer for personalized guidance.

What is a NMLS ID?

An NMLS ID is a unique identification number assigned to mortgage loan originators and mortgage lending institutions through the Nationwide Multistate Licensing System & Registry. It helps identify the person or company handling your mortgage and supports transparency in the mortgage process.

Why it matters

An NMLS ID allows consumers to verify the identity and licensing information of a mortgage professional or lender. It can also help you confirm who you are working with when you review mortgage advertisements, emails, disclosures, and loan documents.

Where you may see it

You may see an NMLS ID on mortgage websites, marketing materials, email signatures, loan paperwork, and other mortgage-related communications. If you want to look up a mortgage professional or lender, you can search the NMLS Consumer Access website.

Need help?

If you have questions about an NMLS ID or want help identifying the mortgage professional working with you, call 844-700-7328 during business hours.

What documents do I need to apply for a mortgage?

To apply for a mortgage, you will need to provide the following documents to verify your identity, income, assets, and employment. Required Documents & Why They are Needed

Copy of your driver’s license or state-issued ID – Verifies your identity and legal name.
Last 2 years of W-2 forms – Prove your employment history and income stability.
Most recent 30 days of pay stubs – Shows your current income and allows us to calculate your debt-to-income ratio accurately.
Last 2 years of Federal Tax Returns (including all schedules) – Confirms your reported income and helps lenders assess your overall financial picture.
Most recent two months of bank statements (all pages) – Verifies your assets, down payment funds, and that you have enough reserves after closing.
Contact information for your homeowner’s insurance agent – Required to set up the proper insurance coverage for the property at closing.

Why These Documents Matter Lenders use these documents to confirm you can afford the loan and meet underwriting guidelines. Having them ready when you apply can shorten your approval time from weeks to days. 5 Helpful Hints When Preparing Mortgage Documents

Gather everything before you apply — it can save you weeks of delays.
Make sure all pages of the bank statements are included.
Include all W-2s and tax returns, even if you filed jointly.
Scan or take clear photos of your documents for easy upload.

Disclosures

Equal Housing Lender. Member First Mortgage, LLC (MFM) NMLS ID# 149532. All loans are subject to credit approval. Terms and conditions apply. Program availability is subject to change without notice.

Available to all members using a conventional mortgage loan program on a purchase transaction with People Driven Credit Union in the State of Michigan. Not eligible on multi-unit properties, condos, townhomes, or manufactured houses. The Loan Example is current as of 9/9/2025 and based on a $200,000 loan amount with a conventional 30-year fixed rate term (360 monthly principal and interest payments of $1,231.43); 0% Down Payment; 6.25% Interest Rate with an Annual Percentage Rate (APR) of 6.465%. Rates quoted assume excellent borrower credit history. Payment example does not include taxes and insurance; the actual payment obligation will be higher. The cost of Private Mortgage Insurance (PMI) is waived as part of this promotion, to be paid by the Lender. This is not a commitment to lend. All lending products are subject to credit and property approval. Additional restrictions may apply. Member First Mortgage, LLC (MFM) is a partner of People Driven Credit Union. Michelle Dzon #401292, is authorized to act as agent of People Driven Credit Union (24333 Lahser Road, Southfield, MI 48033 | (248) 263.4100 | NMLS ID: 776727) and is authorized to represent Member First Mortgage, LLC, a licensed Mortgage Lender/Servicer (Corporate Office: 616 44th Street SE, Grand Rapids, MI 49548 | (616) 538.1818 | NMLS ID: 149532). For licensing information, please visit www.nmlsconsumeraccess.org. Equal Housing Opportunity.

SAFE Act Compliance Testing:
We conduct annual independent testing of our mortgage compliance in accordance with the SAFE Act (Reg G) requirements.

All other trademarks are the property of their respective owners.

People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727

Membership Requirement

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:

A valid Driver's License, State ID, or Passport with your current address
Your Social Security Number

A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.

FHA Mortgage Loans

For first-time homebuyers or those with less-than-perfect credit