Federal Savings Bank Mortgage Review

The Federal Savings bank is a good option for people looking to buy a home or actively considering home refinance. 

Federal Savings Bank Mortgage services range from arranging fixed-rate mortgages, ARM, FHA loans to USDA home loans across 50 states in the United States.

The federal savings bank mortagage review

Illinois-based Federal Savings Bank (TFSB) was founded in 2000 by veterans. TFSB specializes in mortgages for active-duty military, reservists or military veterans helping them achieve the American dream.

The Federal Savings bank goes a step ahead by having a separate mortgage segment and a  dedicated team for veterans. In turn, helps them compare different mortgage options and rates in order to pick a mortgage that fits their needs. 

TFSB other banking products include deposit accounts and personal loans. But has only two traditional retail branches in Illinois for branch banking.

The Federal Savings Bank Mortgage Review 

TFSB’s home loan portfolio caters to the mortgage needs of people across age groups, professions and financial situations.  

#1. TFSB Adjustable Rate Mortgage Review

The Federal Bank adjustable rate mortgage allows you to benefit from the changing interest rate scenario. 

You pay a lower mortgage interest amount on your home loan when the rates in the economy are lower thereby reducing the extra interest burden when compared to a fixed rate.   

The interest rate you pay changes periodically throughout the life of the loan under an adjustable-rate mortgage.

An ARM loan is a better choice for people planning to move before the fixed adjustment period ends.

#2. TFSB Fixed Rate Mortgage Review

The Federal Savings Bank fixed rate mortgage rescues you from the burden of calculating interest periodically.

Monthly budgeting becomes super easy when you know exactly how much principal and interest are paid every month. 

A Fixed Rate Mortgage sets an interest rate that you negotiate and will not change during the entire term of the loan. The drawback is you won’t be able to benefit from a lower interest rate scenario. 

#3. TFSB FHA Loans Review

Federal Housing Administration (FHA) loans by The Federal Savings Bank is ideal for –

  • first-time home buyers 
  • for a person with debt or a lower financial score 
  • Individuals having financial issues on record

If you have a small amount of cash saved for a down payment still you can opt for FHA loans but you’ll also have to pay mortgage insurance.

Department of Housing and Urban Development protects banks against loss if you default on your FHA loan. Precisely, that is why banks extend FHA loans to persons with low credit scores or small down payment requirements.

#4. TFSB VA Home Loans Review

The federal savings bank VA loans

VA Loans from The Federal Savings bank are designed for military personnel and veterans whose home buying requirements are not met with other normal types of home loans.

TFSB is a veteran-owned business having expertise in understanding the unique mortgage needs of veterans. 

VA loans are available to

  • active-duty service members, 
  • reservists, 
  • military veterans, 
  • Spouses of military veterans (provided they do not remarry) 

With TFSB’s express loan approval program veterans experience a hassle-free mortgage process (minus the contract and appraisal part). Veterans can focus more on finding a home rather than worrying about loan procedures.

Other benefits of VA home loans –

  • Optional – Personal loans up to $35,000 in addition to your VA home loan
  • Rate Protect (Lock & Shop) lock in your rate even before finding a home
  • VA home loans are for a lifetime. Once approved can be used multiple times.

#5. ITIN Home Loans Review

The Federal Savings Bank ITIN home loans are for people who are not eligible to have a Social Security Number (SSN) but at least have an Individual Tax Identification Number (ITIN). 

Lawfully admitted non-US citizens, foreign workers and professionals on employment authorization documents benefit from ITIN home loans.

#6. TFSB Construction Home Loans Review

A construction loan is a good option if you choose to build your dream home from scratch. Rather than fitting your personal space, you design your home suited to your family’s needs. 

Construction home loans also allow you to buy an existing home and make the needed alterations, additions or improvements.

With TFSB’s construction loan you can –

  • Build your own home, from scratch.
  • Build attached and unattached add-ons to your current property
  • Renovate or update your current home.

Construction home loans types available with TFSB –

  • VA Construction Loans
  • Conventional Conforming Construction Loans
  • Conventional Super Conforming Construction Loans
  • Jumbo Loans

#7. USDA Home Loans Review

USDA home loan offered by TFSB is a zero-down payment home loan for eligible low-to-average income rural homebuyers. 

You need to be a rural dweller (population less than 20,000) and meet certain income criteria to qualify which differ from region to region.

USDA loans are issued through a loan program administered by the United States Department of Agriculture.

USDA loans have below-market mortgage rates (can be as low as 1%) and reduced mortgage insurance.

#8. TFSB Home Loans for Medical Professionals Review

Medical professionals face a high debt-to-income ratio, proof of employment and income challenges right after graduating from medical school. 

The Federal Savings Bank acknowledges these difficulties. Home loans geared for medical professionals and physicians usually are possible without a down payment and mortgage insurance considering their unique circumstances.

#9. TFSB Reverse Mortgage Loan Review

Reverse mortgages help seniors supplement their income in retirement, reduce monthly housing expenses or pay for repairs and home improvements.

Seniors over 62 years can get a portion of their home equity in cash. For reverse mortgages, you need to be the principal owner or have a low mortgage balance. 

The Federal Savings Bank Home Refinance Review 2022

TFSB home refinance makes sense if you want to –

#1. Lower your mortgage payment

This is possible with improved credit scores that make you eligible for lower interest rates. The refinancing option means you will pay less money every month and save more.

#2. Cash-out option available

When you refinance, you may borrow more than the amount you owe on your mortgage and can cash out the difference. 

#3. Helps adjust the term of your mortgage

Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. 

Home refinancing in favor of shorter terms means you end up paying less in interest overall than with a longer-term mortgage.

#4. Allows you to consolidate debts

Home refinance allows you to shift your mortgage to a financial institution of your choice which helps in record keeping, financial tracking and money efficiency. But it may be hard to find favorable terms from your financial institution.

TFSB home refinance takes all into consideration your needs to get the best terms possible.

The Federal Savings Bank Deposit Accounts Review 

TFSB offers basic banking for personal needs and for small businesses seeking online banking services. 

Their banking services right from account operation, money transfers to withdrawal and payments are online and generally suited to young people who love online banking on mobile.

Only two physical bank branches in Illinois are available which is a constraint for non-tech savvy people.

TFSB has tie-ups with Zelle for digital payment services and Allpoint giving access to 55,000 ATMs across the country. 

TFSB Deposit account details

Account TypeIndicative APYMinimums
TFSB Statement Savings account0.25%$100
TFSB Interest Checking0.10%$100
TFSB Money Market0.15%
$1k to $10k
$10k to $25k
$25k to $50k
$50k to $100k
TFSB CD rates (different maturities from 3 months to 5 year)Varies from 0.20% to 0.60% From $500 to $100k

Note – The money market rates favor balances over $25,000. For balances under 25k, there is a $10 monthly service fee if the average daily balance falls below $1,000.

What I Like 

  • Wide range of mortgage product offerings
  • Online mortgage payments and banking
  • Specifically, catering to veteran military home buyers   

Things to Consider

  • A non-tech savvy person will find TFSB hard to operate
  • Require transparency regarding mortgage rates and terms

Final Thoughts

The Federal Savings bank is a better choice for military veterans and young first-time home buyers with basic banking needs. 

Where veterans’ unique home buying requirements are taken care of and first-time home buyers have a range of mortgage choices.