Homeownership is Within Reach

Get a mortgage that can allow you to purchase a home even if you have debt, a lower credit score, or a small down payment.

Federal Housing Administration (FHA) Loans

Are you looking to buy a home, but aren’t sure you qualify for a traditional mortgage? A Federal Housing Administration (FHA) loan could be the answer. The FHA, a government agency in the U.S. Department of Housing and Urban Development (HUD), insures the loan, enabling FHA-approved lenders, like Citadel Credit Union to offer these loans.

Maybe you have okay—but not great—credit, issues in your credit history, such as a bankruptcy or foreclosure, or a limited credit history. Or perhaps you don’t have a sizeable down payment. You may think owning a home is impossible, but an FHA loan could help you get there. With fixed interest rates and the ability to roll closing costs into your loan, an FHA loan could put home ownership within reach.

Additional benefits include:

Benefits of an FHA Loan

  • Down payment as low as 3.5%
  • Lower credit score requirements
  • Available to those with a less than perfect credit history
  • Grant money may be available through First Front Door Program (FFD) which can help qualified first-time homebuyers with closing costs and down payment.

Qualifications for an FHA Loan

  • Verifiable employment history (last two years) and income (pay stubs, federal tax returns, bank statements)
  • The loan must be used to finance a primary residence
  • The property is appraised by an FHA-approved appraiser and meets HUD guidelines for minimum property standards (MPS)

Ready to apply for an FHA loan?

Apply Now

Additional Features

  • Grant Money – Citadel is a participating institution of the First Front Door Program. First Front Door (FFD) can help qualified first-time homebuyers with closing costs and down payment.
  • No pre-payment penalties – We do not charge penalties if you want to pay off your mortgage early.
  • Servicing by Citadel – Citadel will be your mortgage servicer. You’ll make payments to Citadel, and we’ll be your point of contact for any questions you may have.
  • Online & Mobile Banking – Make payments and manage your loan account. Learn More.

If you're a first-time homebuyer, contact Citadel today to learn about our additional features, the lending process, and much more!

Mortgage Rates

*Offers are subject to credit approval. REG = Regular Rate. APR = Annual Percentage Rate. Read Full Disclosures.

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Best For...
First-time homebuyers who want a low down payment
Members seeking mortgage advice for buying their first home

Contact a Consultant

Not sure yet? No problem. Our Loan Specialists will help answer your questions and walk you through every step of the loan process.

John Alberici
John A. Alberici
Mortgage Loan Advisor- NMLS# 28194
Roxy Hernandez
Roxana Hernandez
Mortgage Loan Advisor - NMLS# 1146300
Mike Omara
Mike O'Mara
Mortgage Loan Advisor - NMLS# 1928430

*Preapproval is based on non-verified information and is not a commitment to lend. Final loan approval and amount are based upon all income and asset information.

Quick Close Guarantee

Citadel’s Quick Close Guarantee offers assurance to customers purchasing a home with a Citadel mortgage that the loan will close on or before the contract closing date agreed to by an authorized Citadel Mortgage Loan Officer, or the customer will receive $5,000 cash back, subject to the following criteria.

Eligibility: To be eligible for Citadel’s Quick Close Guarantee, the customer must (1) maintain an account with Citadel Credit Union (“Citadel”) that is in good-standing or individuals who become a new Citadel customer; (2) complete a Citadel mortgage application online, by telephone, or in-person; (3) provide all supporting documentation (including any income or asset verification materials) required by Citadel to render a lending decision in a timely manner, with each document being thoroughly completed, as well as any fully executed disclosures; (4) provide Citadel with a fully-executed purchase agreement which includes all pages, addendums, and required signatures by all parties; (5) request a loan for an amount less than the maximum of 97% LTV; (6) request a loan for an amount greater than the minimum of $50,000 and lower than the maximum of $2,000,000; and (7) meet all of Citadel’s current underwriting standards.

Closing Date: The contract closing date must be at least 21 calendar days after our receipt and acceptance of a completed mortgage application, all supporting documents, and a fully-executed purchase agreement. This offer is only available for new, residential first-lien loan applications submitted directly to Citadel. Only home purchases that are under Agreement of Sale and have a completed loan application received by Citadel on or after April 1, 2023 are eligible to participate in Citadel’s Quick Close Guarantee. Submissions received after this date, or the program end-date are not eligible to participate in the Program. For any property that receives an initial appraisal that is subject to repairs/completion, a final inspection will be required. Citadel guarantees closing within 7 business days of receipt of a satisfactory final inspection. The $5,000 cash back will be paid in the form of a deposit to a Citadel account, post-closing. Citadel’s Quick Close Guarantee will not apply in any of the following cases: (1) changes to the original closing date as documented in the original purchase agreement provided to Citadel; (2) changes in the loan amount, loan product, or other terms requested by the borrower(s) within 10 days of closing; (3) closing date extensions due to a delay in completion of any new home construction, improvements, or repairs being made to the subject property; (4) failure by any party, including the builder, seller, or buyer to meet the sales agreement terms and requirements, including any seller-related delays; (5) Easy Refinance, VA and FHA loans; (6) delays caused by 3rd parties other than Citadel required service providers; (7) delays due to any force majeure events such as severe weather or disaster events. Citadel’s Quick Close Guarantee offer expires October 31, 2023. Citadel reserves the right to amend, withdraw, or terminate the Citadel Quick Close Guarantee at any time and without prior notice. Any awards transferred at or outside closing in excess of the value of the underwriting fees may be considered miscellaneous income received from Citadel and we may be required to send you, and file with the IRS, a Form 1099-MISC (Miscellaneous Income) or Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) for the year in which you participate and are awarded the benefits of this program. You are responsible for any tax liability related to participating in the program. Please consult your tax advisor if you have any questions about your personal tax situation. All home lending products are subject to credit and property approval. Rates and program Terms & Conditions are subject to change without notice. Citadel’s Quick Close Guarantee is only available to Citadel customers residing in PA, NJ, DE and MD. Other restrictions and limitations may apply.

Conventional Purchase

Rate expressed as Annual Percentage Rate (APR), and is subject to change without notice. Offer can be withdrawn at any time. APR shown is for first-lien position loans up to 97% Loan-To-Value (LTV) on single-family owner-occupied properties in PA, NJ, MD, and DE. Various APRs and terms are available. Loans will require borrower to purchase title insurance and appraisal. Lender fees will apply. LTVs above 80% must escrow taxes. LTVs below 80% may escrow taxes at request of homeowner. Offer is subject to credit approval, income verification and appraisal. Existing mortgage loans must be current and have no late payments in the last 12 consecutive months. Property insurance is required. If the collateral is determined to be in an area that has special flood areas, flood insurance will be required as well. Property cannot be a co-op or mobile home. Other restrictions may apply. *Rate as of

Traditional Mortgage

Fixed Rate Mortgage Terms

Rate expressed as Annual Percentage Rate (APR), and is subject to change without notice. Offer can be withdrawn at any time. APR shown is for first-lien position loans up to 95% Loan-To-Value (LTV) on single-family owner-occupied properties in PA, NJ, MD, and DE. Various APRs and terms are available. Loans will require borrower to purchase title insurance and appraisal. Lender fees will apply. LTVs above 80% must escrow taxes. LTVs below 80% may escrow taxes at request of homeowner. Offer is subject to credit approval, income verification and appraisal. Existing mortgage loans must be current and have no late payments in the last 12 consecutive months. Property insurance is required. If the collateral is determined to be in an area that has special flood areas, flood insurance will be required as well. Properties currently listed for sale are not eligible. Property cannot be a co-op or mobile home. Other restrictions apply on cash-out mortgage loans. Rate as of .

Adjustable Rate Mortgage (ARM)

An Adjustable Rate Mortgage (ARM) means that your payment may change in the future. Citadel ARM mortgages have a fixed rate for a period of time, then rates can adjust semi-annually. The fixed rate period varies based on the ARM loan you select and is shown right in the name of the ARM loan. Citadel offers two ARM loans: a SOFR 7/6 ARM and SOFR 10/6 ARM. The ARM numbers, “7/6”, show how long the initial fixed rate lasts and how often the rate can change afterward.

For Example:

• A 7/6 ARM has a fixed interest rate until the 84th month (7 years) and can change every 6 months after.
• A 10/6 ARM has a fixed interest rate until the 120th month (10 years) and can change every 6 months after.

What is a SOFR ARM?

SOFR is Secured Overnight Financing Rate, and is a referenced rate established to replace LIBOR (London Interbank Offered Rate). The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.

How is my rate calculated?

The initial fixed interest rate is based on interest rate, loan amount, and total term of the loan when your loan is closed. This is the discounted rate and lasts for 7 or 10 years depending on the ARM loan selected.

The Adjustable Interest Rate is based on an interest rate index plus a margin. All of our Citadel ARM mortgage interest rates are based on the 30-Day Average SOFR rate, rounded to the nearest 0.125% (currently .08%). More information about this index is available at SOFR Averages and Index Data - FEDERAL RESERVE BANK of NEW YORK (newyorkfed.org). Our current margin is 2.750%.

How can my Interest Rate change?

Your interest rate can adjust when the initial fixed interest rate period ends, and every 6 months thereafter. Your interest rate will never increase or decrease more than 5 percentage points during the first adjustment, and 1% with each adjustment after the first, over the life of the loan.

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