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FHA Loan

For lower interest rates and less-stringent approval requirements.

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  1. Home
  2. Mortgages
  3. FHA Loan
FHA Loan Purchase Interest Rate  APR  Points  Monthly Payment Loan Term (Months)
30-Year Fixed 6.125% 6.882% -0.250 $2,345.38 360
15-Year Fixed 6.250% 6.987% -0.375 $3,309.65 180

FHA Mortgage Rates effective as of November 25, 2024. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 96.5% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio, and other factors, and may be higher than those displayed here. Rates, closing costs, and points may vary by property location, loan type, and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a purchase price of $400,000, FICO® score of 780 or greater, and 3.5% or more down payment, and loan amount of $386,000; FHA mortgage insurance premium is excluded, and they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply.

FHA Loan Refinance Interest Rate  APR  Points  Monthly Payment Loan Term (Months)
30-Year Fixed 6.125% 6.882% -0.250 $2,345.38 360
15-Year Fixed 6.250% 6.987% -0.375 $3,309.65 180

FHA Mortgage Rates effective as of November 25, 2024. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 96.5% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a property value of $400,000, FICO® score of 780 or greater, and 3.5% or more equity, and loan amount of $386,000; FHA mortgage insurance premium is excluded, and they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply.

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FHA Loan

Government-backed, fixed-rate loan with a low down payment.

KEY FEATURES

  • Fixed-rate mortgage backed by the Federal Housing Administration (FHA)
  • Down payment as low as 3.5% of purchase price
  • Can be used for home purchase or mortgage refinance
  • Issued by federally qualified lenders, such as Elements Financial
  • Apply in 15-20 minutes!

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MAY BE A GOOD CHOICE IF

  • You do not have a substantial down payment saved
  • You have less-than-perfect credit or limited credit history
  • You have a low to moderate income
  • Trade-off: The lowest rates usually carry some fees and closing costs

Compare to Other Mortgages

So, what exactly is an FHA Loan?

An FHA Loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). They are designed for borrowers who have a low to moderate income who are unable to make a large down payment. It is also a good option for borrowers who do not have a high credit score or whose debt-to-income (DTI) ratio is high. 

The interest rate can vary depending on the borrower’s credit score, market conditions and other factors. However, the rates can be competitive because the lender’s risk is decreased since the government backs the loan.

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How does an FHA Loan compare to other Elements mortgage options?

An FHA Loan has a fixed rate for the life of the loan but is attainable for borrowers with a lower income. See other differences in the chart.

  FHA Loan First-Time Homebuyer Program Fixed-Rate Mortgage Adjustable Rate Mortgage
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Key Benefits

Low down payment

Government-backed

Low down payment

No mortgage insurance

Predictable payments

No interest-rate surprises

Lowest short-term rates

Initial lower monthly payments
A Good Option If You

Do not have a substantial down payment saved

Have less than perfect credit or limited credit history

Do not have a substantial down payment saved

Have not owned a house in the past three years

Want your rate and payments to stay same for life of loan

Plan to stay in your home for several years

Are comfortable with rate and payments fixed at first, then adjusting later

Don't plan to stay in the home long
Available Loan Terms

Purchase & Refinance:

15 and 30 years

15, 20, and 30 year fixed

5/5 ARM and 7/6 ARM

Purchase & Refinance:

5, 7, 10, 15, 20, and 30 years

Purchase & Refinance:

5/5 ARM 30 year and 7/6 ARM 30 year. Please call for information about other ARM products and terms.
Interest Rate As Low As

Purchase: 6.125% for 30-Year Fixed

Refinance: 6.125% for 30-Year Fixed

6.625% for 15-Year Fixed

7.750% for 7/6 ARM 30-Year

Purchase: 6.250% for 15-Year Fixed

Refinance: 6.375% for 15-Year Fixed

Purchase: 7.125% for 3/6 ARM 30-Year

Refinance: 7.625% for 3/6 ARM 30-Year
APR As Low As

Purchase: 6.882% for 30-Year Fixed1

Refinance: 6.882% for 30-Year Fixed2

6.684% for 15-Year Fixed3

7.789% for 7/6 ARM 30-Year4 

Purchase: 6.315% for 15-Year Fixed5

Refinance: 6.440% for 15-Year Fixed5

Purchase: 7.623% for 3/6 ARM 30-Year4 

Refinance: 7.759% for 3/6 ARM 30-Year4 
No Points — —
No Mortgage Insurance (PMI) — — —
Down Payment As low as 3.5% of purchase price As low as 5% of purchase price As low as 5% of purchase price As low as 10% of purchase price
Loan Limits —

Up to $450,000

 — —
Special Feature Backed by the Federal Housing Administration (FHA) — — —
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Can my down payment really be as little as 3.5%?

Yes!

This government-backed loan requires a smaller down payment than a conventional loan.

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What fees and closing costs should I expect?

The specific amount of your closing costs will vary. A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Your Elements Mortgage Loan Originator will review all costs with you based on your specific loan amount, purchase price, and home value.

Third Party Fees

Third party fees are ones that we collect and pass on to the person who actually performed the service. These can include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees. 

Taxes and Other Unavoidable Costs

These fees include state/local taxes and recording fees and will most likely have to be paid regardless of the lender you choose. If some lenders don't quote you fees that include taxes and other unavoidable fees, don't assume you won't have to pay it. It is possible that a lender who doesn't tell you about the fee hasn't done the research necessary to provide accurate closing costs.

Lender Fees

Lender fees such as points, document preparation fees, and loan processing fees are retained by the lender and are used to provide you with the lowest rates possible. This is the category of fees that you should compare very closely from lender to lender before making a decision. Elements charges a standard $995 origination fee on all mortgages.

For more information, call us at 1-800-561-9433.

Is refinancing available with an FHA loan?

Yes! When you refinance your home, you actually pay off your existing mortgage and replace it with a new one. You might do this to get a lower interest rate or to shorten the term of your mortgage. Perhaps your current financial situation would make it good for you to switch from a conventional mortgage to an FHA. You can learn more about refinancing your mortgage with Elements.

Should I get preapproved?

Call us at 1-800-561-9433 to see if you can be preapproved for a loan so that you know what price range you can afford, to evaluate the monthly costs of a loan, and to see how much of a loan you can afford. The preapproval will also give you some leverage when negotiating with the sellers.

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What happens during the loan application process?

Getting Started

You can apply online in 15-20 minutes! Submit your application anytime. Or call us at 1-800-561-9433 to apply by phone. When you apply, have ready your government-issued ID (driver’s license, state ID, or passport) and estimates of your household income, assets, home value and price you paid for your home.

Gathering Documentation

We’ll contact you within one business day after you submit your application to review documentation that we'll need from you. We’ll also answer any questions you may have. 

Application Review & Approval 

Once you have supplied your documents, your loan will be reviewed by an underwriter. After the underwriter review, your Elements Mortgage Loan Originator and Loan Processor will work together to obtain any further documentation that is needed to close your loan, including the appraisal and title work. 

Closing

Once your loan has been approved, your closing will be scheduled at a location convenient for you. That's it — your FHA Loan is complete! Application to closing takes an average of 30 days. 

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Why should I go to Elements for my mortgage?

Like a Bank, Only Better!

Personal Mortgage Guidance

Buying a home can be a bit overwhelming. But don’t worry. We’ll be with you every step of the way to guide you through the FHA Loan process, from preapproval all the way to closing. You’ll have your personal mortgage expert’s cell phone number, so you can get all your questions answered very quickly. 

Better Rates. Fewer Fees.

Because we’re a credit union, we return profits to members in the form of reduced fees, higher savings rates, and lower loan rates.

Trusted Advice. Fresh Approach.

We pride ourselves on being a trusted source for financial education. We come to your workplace to answer questions and can provide you with a dedicated Mortgage Loan Originator to guide you through the entire mortgage process.

Respected Locally. Accessed Globally.

Headquartered in Indianapolis since 1930, we rank among the top 3% of credit unions nationally6. We serve members in all 50 states and 50+ countries. You’ll have access to 5,000+ shared branches nationwide and 78,000+ surcharge-free ATMs globally.

High Tech. Human Touch.

Our technology makes banking with Elements easy. From quick digital applications to online and mobile banking, we’ll be by your side wherever you go. We’re here for you with member service available 24/7 and live chat during the workday.

Get Started

How do I apply?

3 Easy Steps to Apply

  1. Apply online - Do this online whenever you have 15-20 minutes to spare. Or call 1-800-561-9433 to get started.
  2. Take our call - We'll contact you within one business day after you submit your application to go over what documentation we'll need and to answer your questions.
  3. Schedule your closing - We'll stay in touch with you throughout the mortgage process. Then, if you're approved, we'll schedule your closing at a location convenient for you.

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How is my mortgage payment calculated?

Your monthly mortgage payment is made up of four components: principal, interest, property taxes, and homeowner’s insurance (referred to as "PITI"). 

Principal and Interest

Principal and interest are based on the loan amount, interest rate, and term (amortization) of your loan. 

Property Taxes

Property taxes are assessed annually. The amount of your taxes is divided by 12 months in order to determine how much will be collected from you as part of your monthly payment.

Insurance

Homeowner’s Insurance is also paid annually. The amount of your annual premium is divided by 12 months as well. 

Private Mortgage Insurance (PMI) can also be a component of your monthly mortgage payment. This is insurance that the lender obtains to protect them against any loss if you stop making payments on your loan. PMI is typically required on Conventional loans if you do not put at least 20% down on a purchase or have 20% or more equity in your property on a refinance.

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What Would My Mortgage Payments Be?

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* Estimates based on national averages.

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  1. 1 FHA Mortgage Rates effective as of November 25, 2024. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 96.5% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio, and other factors, and may be higher than those displayed here. Rates, closing costs, and points may vary by property location, loan type, and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a purchase price of $400,000, FICO® score of 780 or greater, and 3.5% or more down payment, and loan amount of $386,000; FHA mortgage insurance premium is excluded, and they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply.
  2. 2 FHA Mortgage Rates effective as of November 25, 2024. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 96.5% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a property value of $400,000, FICO® score of 780 or greater, and 3.5% or more equity, and loan amount of $386,000; FHA mortgage insurance premium is excluded, and they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply.
  3. 3 First Time Homebuyer Rates effective as of November 25, 2024. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 95% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on purchase price of $350,000, FICO® score of 780 or greater, 5% or more down payment, and loan amount of $332,500; they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply. Please call for rate information about mortgage products with terms other than those listed.
  4. 4 Adjustable Rates effective as of November 25, 2024. Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 75% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a purchase price of $400,000, FICO® score of 780 or greater, 25% down payment, and loan amount of $300,000; they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply. Please call for rate information about ARM products with terms other than those listed.
  5. 5 Fixed Rates effective as of November 25, 2024.Note that the interest rates and annual percentage rates (APRs) shown here are available to borrowers with credit scores 780 or greater and 75% Loan-to-Value (LTV) and are based on loans secured by property in the state of Indiana. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income characteristics. ALL FINANCING SUBJECT TO CREDIT APPROVAL. Example Monthly Payments based on a purchase price of $400,000, FICO® score of 780 or greater, 25% down payment, and loan amount of $300,000; they do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Rates are subject to change without notice. Some restrictions may apply. Please call for rate information about mortgage products with terms other than those listed.
  6. 6 Based on asset size as of 12/31/2022.