Provident gets wings as Eagle FHA lender.

The Provident Bank has received Unconditional Direct Endorsement Approval from the Federal Housing Administration. This designation as a "full Eagle FHA lender" means the bank can now originate, fund, hold, service, purchase and sell FHA-backed mortgage loans.

Prior to receiving the endorsement, the bank had to submit FHA loans to the Department of Housing and Urban Development for underwriting review. This lengthened the process of granting a mortgage loan to prospective homebuyers.

"Becoming a full Eagle lender makes us stand out among banks," said David Boone, first vice president of residential lending at Provident. "Most banks don't bother with FHA loans and leave them up to mortgage brokers.

"The big thing for a borrower about the full Eagle designation is that it streamlines the mortgage process for applicants. That goes hand in glove with meeting the needs of the community."

Boone added that there is a popular misconception that FHA-backed mortgage loans are for people who have low incomes or poor credit. "There really are no income restrictions for FHA loans. They can help people whose credit is fine, but who don't have sufficient money to put down on the house," he said.

"Saving enough for a down payment is a major deterrent to home ownership, especially in New Jersey. FHA-backed mortgages can help people get into a house with as little as three percent down.

"Of course, an FHA mortgage loan can also help people with impaired credit to get into the housing market."