Call it a sign of the down economy and California's shifting real estate market. The $7.5 billion The Golden 1 Credit Union has announced that it will start writing mortgages eligible for insurance from the Federal Housing Authority.

Loans eligible for insurance from the popular Housing and Urban Development program usually require lower down payments than do mortgages without FHA insurance. The credit union reported that traditional mortgage loans in its market often have a requirement for a down payment of 10% of the loan value while loans insured by FHS require only a 3.5% down payment. In addition, the credit union pointed out in its announcement that the 3.5% down payment can be given to the borrower from an immediate family member, a fianc? or close family friend.

"Almost everyone dreams of owning their own home, and FHA loans can help make this goal more achievable for buyers at all income levels," The Golden 1 CEO Teresa Halleck said. "Golden 1 strives to offer exceptional products that provide great value to our members, and FHA home loans give home buyers another great option."