Loans Frequently Asked Questions

An FHA loan is a type of mortgage insured by the Federal Housing Administration, designed to help first-time homebuyers or those with lower credit scores qualify for a home loan. It typically offers:

• Lower down payment requirements
• More flexible credit guidelines
• Fixed or adjustable rate options

Please note: First Tech does not currently offer FHA loans, but we do provide a variety of other mortgage solutions to help you reach your homeownership goals.

Explore options like:

• Conventional fixed-rate mortgages
• Adjustable-rate mortgages (ARMs)
• Jumbo loans
• Home equity loans and lines of credit

Our team is here to help you find the right fit—whether you're buying your first home or refinancing your current one.

Helpful Resources

• Mortgage Options
• Contact a Mortgage Loan Officer

A conventional loan is a type of mortgage that’s not insured by a government agency like the FHA or VA. It’s a popular option for homebuyers with strong credit and stable income—and it often comes with more flexibility.

Key benefits:

• Competitive interest rates
• Flexible loan terms
• No upfront mortgage insurance (with 20% down)
• Available for primary, secondary, or investment properties

At First Tech, we offer competitive rates and personalized support to help you find the right conventional loan for your homeownership goals.

Helpful Resources

• Explore Mortgage Options
• Mortgage Calculator
• Contact a Mortgage Officer 

Getting pre-approved is a smart first step in your homebuying journey. It helps you understand how much you can borrow and shows sellers you're a serious buyer.

At First Tech, you can get pre-approved:

• Online at firsttechfed.com/apply
• By phone at 855.855.8805
• In person at any First Tech branch

During pre-approval, we’ll review your:

• Income and employment details
• Credit history
• Debt-to-income ratio
• Estimated down payment

Once approved, you’ll receive a pre-approval letter that strengthens your offer and helps you shop with confidence.

Helpful Resources

• Mortgage Options

An installment loan is a type of loan that’s repaid over time with regular, scheduled payments. Each payment includes both principal and interest, and the loan is paid off by the end of the term.

Common examples of installment loans include:

• Personal loans – Great for covering unexpected expenses or funding big goals
• Auto loans – Helps you finance a new or used vehicle
• Mortgages – Supports your journey to homeownership

At First Tech, we offer installment loans with flexible terms, competitive rates, and personalized support—so you can borrow confidently and stay on track toward your dreams.

Helpful Resources

• Explore Loan Options

Applying for a home equity loan is simple—and we’re here to support you every step of the way.

You can:

• Apply online at firsttechfed.com/apply
• Schedule an appointment to speak with a Home Equity Loan Officer

Not sure which option is right for you? Our team will help you explore flexible terms, competitive rates, and loan solutions that fit your goals—whether you're planning a renovation, consolidating debt, or funding a major expense.

Helpful Resources

• Home Equity Loan Overview
• Schedule an Appointment

A Home Equity Line of Credit (HELOC) gives you flexible access to funds based on your home’s equity. With First Tech’s Equity Line of Credit, repayment is structured in two phases:

1. Draw Period (10 Years)

• You can borrow as needed, up to your approved limit.
• You’ll make interest-only payments, keeping monthly costs low.
• You can also make additional payments toward the principal to reduce your overall balance early.

2. Repayment Period

• After the draw period ends, you can no longer withdraw funds.
• You’ll begin making monthly payments on both principal and interest.
• First Tech allows early payoff without prepayment penalties, giving you more control over your financial future.

This structure is ideal for ongoing projects or expenses like home improvements, education costs, or emergency funds—offering flexibility now and manageable repayment later.

Helpful Resources

• Equity Line of Credit Overview
• Schedule an Appointment

Your borrowing limit depends on several factors, including:

• The current market value of your home
• Your remaining mortgage balance
• Your debt-to-income ratio
• Your ability to repay the loan

At First Tech, we evaluate these details to offer a loan amount that fits your financial goals—whether you're planning a renovation, consolidating debt, or funding a major expense.

We’re also launching a new interactive home equity calculator soon to help you estimate your borrowing power. In the meantime, we recommend scheduling a one-on-one appointment with a Home Equity Loan Officer for a personalized estimate and guidance.

Helpful Resources

• Home Equity Loan Overview
• Schedule an Appointment

At First Tech, we offer two flexible ways to borrow against the value of your home—so you can choose the option that best fits your goals:

1. Flexity Line of Credit (HELOC)

• Access funds as needed during a 10-year draw period
• Make interest-only payments during the draw period
• Use funds for home improvements, education, or unexpected expenses
• Pay down principal anytime—with no prepayment penalties

2. Fixed-Rate Home Equity Loan

• Receive a one-time lump sum
• Choose a repayment term from 5 to 20 years
• Enjoy fixed monthly payments and a locked-in interest rate
• Ideal for large, planned expenses like renovations or debt consolidation

Both options offer competitive rates, flexible terms, and personalized support to help you make the most of your home’s equity.

Helpful Resources

• Home Equity Loan Overview
• Schedule an Appointment

A home equity loan or home equity line of credit (HELOC) lets you borrow against the value of your home, helping you turn equity into opportunity.

Home Equity Loan

• Borrow a fixed amount in one lump sum
• Enjoy a fixed interest rate and consistent monthly payments
• Ideal for large, planned expenses like renovations, tuition, or debt consolidation

Home Equity Line of Credit (HELOC)

• Access a revolving line of credit you can draw from as needed
• Pay interest only on the amount you use
• Interest rate is variable, and you can repay and reuse funds during the draw period
• Great for ongoing or unpredictable expenses

Your home equity is the difference between your home’s current market value and what you still owe on your mortgage. As you make payments and your home’s value increases, your equity grows—giving you more borrowing power.

Helpful Resources

• Home Equity Loan Overview
• Schedule an Appointment

At First Tech, we’re here to help you borrow smart—so you can move forward with confidence.

Before you apply for a loan, ask yourself:

• How much do I really need?
  Borrow only what supports your goals. Taking out more than you need can lead to higher payments and unnecessary interest.
• Can I comfortably afford the monthly payments?
  Make sure the loan fits your budget today—and tomorrow. If a lender pressures you to borrow more or accept terms that feel off, trust your instincts and explore other options.
• Do I fully understand the terms?
  Always read the fine print. Know your interest rate, repayment schedule, fees, and any penalties. If something’s unclear, ask questions—we’re here to help.
• Am I keeping good records?
  Save all loan documents and disclosures. They’re important for your financial records and peace of mind.

Tip: First Tech offers flexible terms, competitive rates, and personalized support to help you reach your dreams—whether you're buying a car, funding education, or consolidating debt.

Helpful Resources

• Explore First Tech Loan Options
• Understanding Loans

A home equity line of credit (HELOC) is a flexible way to borrow using the equity in your home. Think of it like a credit card—you're approved for a set amount, and you can draw funds as needed.

Here’s how it works:

• Revolving access to funds:
  You can borrow, repay, and borrow again—up to your approved limit—during the draw period.
• Pay interest only on what you use:
  You’re not charged interest on the full credit line, just the amount you actually borrow.
• Variable interest rate:
  HELOCs typically have rates that change over time, based on the Prime Rate. That means your monthly payments may go up or down.

Tip: A HELOC can be a great option for home improvements, education costs, or unexpected expenses. At First Tech, we offer competitive rates and flexible terms to help you make the most of your home’s value—and reach your dreams with confidence.

Helpful Resources

• Explore Home Equity Options
• Speak with a Loan Officer

A home equity line of credit (HELOC) can be a smart, flexible way to borrow—especially if you're looking to save on interest and manage your finances with confidence.

Here’s why members choose a HELOC:

• Lower interest rates:
  Because a HELOC is secured by your home, it often comes with lower rates than unsecured loans or credit cards—helping you save more over time.
• Debt consolidation:
  Use your HELOC to pay off higher-interest debt. This can simplify your payments and reduce the total interest you pay.
• Flexible access to funds:
  Borrow only what you need, when you need it. You’ll only pay interest on the amount you use—not your full credit line.
• Potential tax advantages:
  In some cases, interest paid on a HELOC may be tax-deductible. Be sure to consult a Certified Public Accountant (CPA) to understand what applies to your situation.

Tip: Whether you're planning a renovation, covering education costs, or preparing for the unexpected, First Tech offers competitive rates and personalized support to help you reach your dreams.

Helpful Resources

• Explore Home Equity Options
• Speak with a Loan Officer

A HELOC can be a powerful financial tool—but it’s not ideal for every situation. Here are a few things to consider before applying:

• Smaller borrowing needs:
  If you only need a small amount of cash, a HELOC may not be the most cost-effective option. Upfront costs can be higher than other loan types.
• Managing everyday expenses:
  If you're using a loan to cover regular living costs or struggling to make ends meet, taking on additional debt—especially one secured by your home—could increase financial stress.
• Variable interest rates:
  HELOCs typically have rates that change over time, based on the Prime Rate. This means your monthly payments may fluctuate, which can be challenging if your income varies month-to-month.

Tip: First Tech offers a range of borrowing options to fit your needs. If a HELOC isn’t the right fit, we’ll help you explore alternatives that support your financial goals—without added pressure.

Helpful Resources

• Explore Home Equity Options
• Speak with a Loan Officer

A Home Equity Line of Credit (HELOC) is a flexible borrowing option that lets you tap into your home’s equity when you need it—on your terms.

Here’s how it works:

• It’s a revolving line of credit, similar to a credit card, but backed by your home.
• You can draw funds as needed, up to your approved limit.
• You’ll only pay interest on the amount you use, not the full credit line.
• The interest rate is variable, which means it may change over time.

Why members choose a HELOC:

• Flexibility to borrow for home improvements, education, or unexpected expenses.
• Competitive rates that help you save.
• Genuine support from our lending experts who are here to help you reach your dreams.

Helpful Resources

• Explore HELOC options
• Schedule a consultation

Your borrowing limit for a HELOC depends on several factors, including:

• Your home’s current market value
• The amount you still owe on your mortgage
• Your debt-to-income ratio
• Your ability to repay the loan

We’re here to help you understand your options and find the right fit for your goals. While we’re working on a new interactive Home Equity Calculator (coming soon!), you can get a personalized estimate by scheduling a quick consultation with one of our Home Equity Loan Officers.

Schedule an appointment

Why choose First Tech for your HELOC?

• Flexible borrowing that adapts to your needs
• Competitive rates to help you save
• Genuine guidance from experts who care about your dreams

Helpful Resources

• Home Equity Loan & HELOC Overview
• Contact a Loan Officer

A Home Equity Line of Credit (HELOC) gives you flexible access to funds—when you need them—using the equity in your home. It’s a smart way to borrow for life’s big moments or unexpected expenses.

Here’s why members choose a HELOC:

• Lower interest rates than many unsecured loans or credit cards
• Pay less interest by using your HELOC to consolidate higher-rate debt
• Flexible access to funds over time, not just a lump sum
• Potential tax advantages—consult a Certified Public Accountant (CPA) to learn more

Whether you're planning a renovation, covering education costs, or managing debt, a HELOC can help you move forward with confidence.

Helpful Resources

• Compare HELOC vs. Home Equity Loan
• Schedule a consultation

Repaying a HELOC is designed to be flexible and member-friendly, with options that support your financial goals.

Here’s how it works at First Tech:

• Draw period: You’ll have up to 10 years to access funds as needed. During this time, you’ll make interest-only payments, keeping monthly costs low.
• Early payments: Want to pay down your balance sooner? You can make additional principal payments anytime during the draw period—without penalties.
• Repayment period: After the draw period ends, you’ll begin repaying the principal and interest. You won’t be able to borrow additional funds at this stage.

Looking to pay off your HELOC early?
First Tech’s HELOCs come with no prepayment penalties, so you can pay off your loan faster and save on interest.

Helpful Resources

• HELOC Overview
• Schedule a consultation

A HELOC can be a powerful financial tool—but it’s not ideal for every situation. Here are a few things to consider before applying:

A HELOC may not be right for you if:

• You only need to borrow a small amount—other loan types may have lower upfront costs.
• You’re using it to cover day-to-day expenses—taking on new debt during financial hardship can be risky.
• You prefer fixed payments—HELOCs have variable interest rates, which means your monthly payments can change.
• Your income is inconsistent—fluctuating payments may be harder to manage if your earnings vary month-to-month.

Tip: Always review your financial situation and goals before borrowing. And if paying off your loan early is important, First Tech HELOCs come with no prepayment penalties.

Helpful Resources

• HELOC Overview
• Schedule a consultation

Applying for a Home Equity Loan at First Tech is simple, secure, and designed to fit your life.

Here’s how to get started:

• Apply online anytime – Our quick and easy application is available 24/7.
   Start your application
• Want to talk it through first? – Schedule a one-on-one appointment with a Home Equity Loan Officer. We’ll help you explore your options and find the right fit for your goals.
  Book a consultation

Whether you're planning a renovation, consolidating debt, or funding a major milestone, we’re here to help you move forward—with flexible terms, competitive rates, and genuine support.

Helpful Resources

• Home Equity Loan Overview