The $341 million Consumers Credit Union has become the latest to start offering its members mortgages insured by the Federal Housing Administration. FHA insured mortgages are popular with many home buyers because of their more favorable terms.

"FHA mortgages can benefit virtually any home buyer needing a low down payment home loan," says Kathi Vlachos, mortgage manager for Consumers. "And, because the loan is backed by the federal government, we're able to provide financing to buyers with varying circumstances and sometimes challenged credit."

FHA insured mortgages allow sellers to contribute up to 6% of the property's purchase price toward closing costs and allow both buyer and seller to pay closing costs. Lenders making an FHA insured mortgage can also use non-traditional credit history elements in their underwriting.