Welcome to FHA Loans at Garden City Mortgage Team

Buying your first home is one of the most exciting milestones in life — but for many people, it also comes with a long list of worries. What if my credit score isn’t high enough? What if I don’t have enough saved for a down payment? What if the numbers just don’t add up? These are questions that cross the minds of countless first-time buyers every single day. And if any of them have crossed yours, then an FHA Loan might be exactly the solution you’ve been looking for.

FHA Loans are one of the most popular and accessible mortgage products available in the United States today. Backed by the Federal Housing Administration, these loans were specifically created to help people who might not qualify for traditional financing get their foot in the door of homeownership. With lower down payment requirements, more flexible credit guidelines, and competitive terms, FHA Loans have helped millions of Americans achieve the dream of owning their very own home.

At Garden City Mortgage Team, we are proud to be a trusted resource for FHA Loans in our community. Whether you are a first-time buyer just getting started or someone looking to get back into homeownership after a gap, our team is here to walk you through every step of the process with clarity, care, and confidence.

Let’s explore everything you need to know about FHA Loans and why they might be the perfect fit for your situation.

What Exactly Are FHA Loans?

An FHA Loan is a type of mortgage that is insured by the Federal Housing Administration, which is a part of the U.S. Department of Housing and Urban Development. Because the federal government backs these loans, lenders take on less risk when they issue them — and that reduced risk is passed directly on to you in the form of more lenient qualification requirements and more accessible terms.

FHA Loans were first introduced in the 1930s during the Great Depression, when homeownership was out of reach for a huge portion of the American population. The program was designed to stabilize the housing market and give everyday Americans a realistic path to buying a home. Today, decades later, FHA Loans remain one of the most important and widely used mortgage products in the country.

Here is what sets FHA Loans apart from many other mortgage options: the down payment requirement can be as low as 3.5% for borrowers with a credit score of 580 or above. That means if you are purchasing a $300,000 home, you may only need $10,500 out of pocket for your down payment. For buyers who have been saving but haven’t been able to accumulate a massive nest egg, this can be a complete game-changer.

It is also worth noting that FHA Loans do come with a mortgage insurance premium, or MIP. This is an additional cost that protects the lender in case of default. While it does add to your monthly payment, it is the trade-off that makes the lower down payment and flexible credit requirements possible — and for many buyers, it is absolutely worth it.

Who Should Consider an FHA Loan?

FHA Loans are designed to be broadly accessible, and they are a great fit for a wide range of borrowers. Here are some of the most common situations where an FHA Loan makes a lot of sense:

First-Time Homebuyers – If you have never owned a home before and are just beginning your journey into homeownership, an FHA Loan is one of the most popular and recommended starting points. The lower down payment and flexible credit requirements make it an ideal entry-level product.

Buyers with Lower Credit Scores – Traditional mortgage products like Conventional Loans often require a credit score of 620 or higher — and sometimes much more. FHA Loans are more forgiving. Borrowers with a credit score as low as 580 may qualify for the 3.5% down payment option, and in some cases, scores as low as 500 may be considered with a higher down payment.

Buyers with Limited Savings – Not everyone has years of savings sitting in a bank account. If you have been working hard but just haven’t had the chance to save a large amount for a down payment, an FHA Loan can help you get into a home much sooner than you might have thought possible. And when combined with a Down Payment Assistance program, the amount you need out of pocket can be reduced even further.

Buyers Recovering from Financial Setbacks – If you have gone through a bankruptcy, foreclosure, or other financial difficulty in the past, an FHA Loan can offer a path back into homeownership sooner than many other loan products. The waiting periods and requirements are often more flexible than what you would find with Conventional Loans.

Buyers Purchasing Older or Fixer-Upper Homes – FHA Loans also offer special programs — like the FHA 203(k) Loan — that allow you to finance both the purchase of a home and the cost of renovations in a single loan. This can be an incredible opportunity for buyers who see potential in a property that needs a little work.

How FHA Loans Compare to Other Mortgage Products

Understanding where FHA Loans fit in the broader mortgage landscape is important — especially if you are weighing your options. Here is how FHA Loans compare to some of the other popular products we work with at Garden City Mortgage Team:

FHA Loans vs. Conventional Loans – Conventional Loans are not backed by the government and typically require higher credit scores and larger down payments. They can offer more flexibility in terms of property types and loan amounts, but for buyers who need more accessible qualification criteria, FHA Loans are often the better choice. That said, once you have built up equity and your financial profile has strengthened, refinancing from an FHA Loan into a Conventional Loan is a very common and smart move.

FHA Loans vs. VA Loans – VA Loans are an extraordinary benefit available to eligible veterans, active-duty military members, and surviving spouses. They often require no down payment at all and do not carry mortgage insurance the way FHA Loans do. If you qualify for a VA Loan, it is often the more advantageous product. However, for buyers who do not have VA eligibility, FHA Loans fill a very similar role in terms of accessibility and affordability.

FHA Loans vs. USDA Loans – USDA Loans are designed for buyers purchasing in rural or eligible suburban areas and can offer 100% financing — meaning no down payment at all. If you are buying in a qualifying location, a USDA Loan can be even more accessible than an FHA Loan. However, USDA Loans come with geographic restrictions that FHA Loans do not. FHA Loans can be used to purchase a home almost anywhere in the country.

FHA Loans vs. Jumbo Loans – Jumbo Loans are used for higher-priced properties that exceed conventional loan limits. They require strong credit, significant income, and larger down payments. FHA Loans, on the other hand, are designed for more moderately priced properties and are focused on accessibility rather than high loan amounts. The two products serve very different segments of the market.

FHA Loans vs. DSCR Loans – DSCR Loans are designed for real estate investors who want to qualify based on a property’s rental income. FHA Loans are intended for owner-occupied primary residences. If you are buying a home to live in, an FHA Loan is the right conversation. If you are buying an investment property, a DSCR Loan is likely the better fit.

FHA Loans vs. Bank Statement Loans – Bank Statement Loans are popular with self-employed individuals who prove income through their bank deposits rather than traditional pay stubs or tax returns. While FHA Loans can also accommodate self-employed borrowers with the right documentation, Bank Statement Loans offer a different pathway to qualification that some borrowers find easier to navigate.

FHA Loans and Bridge Loans – Bridge Loans are short-term financing tools used to help buyers transition between properties. While they serve a very different purpose than FHA Loans, there are situations where a buyer might use an FHA Loan to purchase a new primary residence while using a Bridge Loan to manage the financial transition from a previous property.

FHA Loans and HELOC Loans – A HELOC Loan allows you to borrow against the equity in a home you already own. If you already have a home and are looking to tap into that equity for a renovation or other purpose, a HELOC may be worth exploring. But if you are purchasing a new home and need an accessible mortgage product, an FHA Loan is the way to go.

FHA Loans and Down Payment Assistance – This is one of the most powerful combinations available to first-time buyers. Many Down Payment Assistance programs are specifically designed to pair with FHA Loans, helping cover part or all of the 3.5% down payment requirement. If you are considering an FHA Loan, it is absolutely worth asking our team about Down Payment Assistance options in your area.

What Are the Requirements for an FHA Loan?

Every FHA Loan program has its own set of guidelines, but here are the general requirements you can expect when applying through Garden City Mortgage Team:

Minimum Credit Score – To qualify for the lowest down payment option of 3.5%, you will typically need a credit score of at least 580. Borrowers with scores between 500 and 579 may still qualify, but a down payment of 10% or more will usually be required.

Down Payment – The minimum down payment for an FHA Loan is 3.5% of the purchase price for borrowers with a credit score of 580 or above. This is one of the lowest down payment requirements available in the mortgage market today.

Steady Employment or Income – Lenders will want to see that you have a stable source of income and can comfortably make your monthly mortgage payments. This is typically verified through pay stubs, tax returns, or — in the case of self-employed borrowers — bank statements or business documentation.

Debt-to-Income Ratio – Your total monthly debts — including the new mortgage payment — should generally not exceed 43% of your gross monthly income, though some exceptions exist depending on the lender and your overall financial profile.

Primary Residence Requirement – FHA Loans are intended for owner-occupied primary residences only. You cannot use an FHA Loan to purchase a vacation home or an investment property. If you are looking to invest in rental properties, products like DSCR Loans or Conventional Loans would be more appropriate.

Home Appraisal – The property you are purchasing will need to be appraised by an FHA-approved appraiser. The appraisal will confirm the value of the home and also ensure that the property meets certain safety and livability standards set by the FHA.

The Costs of an FHA Loan – What to Expect

One of the most important things to understand before committing to an FHA Loan is the cost structure. FHA Loans come with two types of mortgage insurance premiums that are important to be aware of:

Upfront Mortgage Insurance Premium (UFMIP) – This is a one-time fee, typically 1.75% of the loan amount, that is charged at closing. In many cases, this fee can be rolled into your loan amount so you do not have to pay it out of pocket on closing day.

Annual Mortgage Insurance Premium (MIP) – In addition to the upfront fee, FHA Loans also carry an annual mortgage insurance premium that is paid monthly as part of your mortgage payment. The amount varies depending on your loan term, loan amount, and down payment, but it typically ranges from 0.55% to 1.05% of the loan amount per year.

While these insurance premiums do add to the overall cost of an FHA Loan, they are the reason the program is able to offer such accessible terms. For many buyers — especially first-time buyers and those with limited savings — the trade-off is well worth it. And once you have built up enough equity in your home, you may be able to refinance into a Conventional Loan and eliminate the mortgage insurance requirement entirely.

How the FHA Loan Process Works at Garden City Mortgage Team

Applying for an FHA Loan should feel exciting — not stressful. Here is how we guide you through the process at Garden City Mortgage Team, step by step:

Step 1: Initial Consultation – Everything starts with a friendly, no-pressure conversation. You will sit down with one of our experienced loan officers to talk about your homeownership goals, your financial situation, and whether an FHA Loan is the best fit. We will also explore whether Down Payment Assistance or any other programs might benefit you.

Step 2: Pre-Qualification and Documentation – We will help you gather all the documents needed to move forward — things like identification, proof of income, bank statements, and information about your debts. We keep this process as simple and painless as possible.

Step 3: Property Selection and Appraisal – Once you find the home you love, we will arrange for an FHA-approved appraisal to confirm the property’s value and ensure it meets all FHA guidelines.

Step 4: Underwriting and Approval – Our underwriting team will carefully review your application and work to get you approved as quickly as possible. We keep you updated and informed every single step of the way — no guessing, no waiting in the dark.

Step 5: Closing Day – Once everything is approved, we walk you through the closing process with care and attention to detail. Before you know it, you will be holding the keys to your very own home. Congratulations.

Why Garden City Mortgage Team Is the Right Choice for Your FHA Loan

Choosing the right lender for your FHA Loan matters — and at Garden City Mortgage Team, we take that responsibility seriously. We have helped a wide range of borrowers navigate the FHA Loan process, and we bring the same level of dedication and expertise to every single application.

We work with a full suite of mortgage products every day — including Conventional Loans, VA Loans, USDA Loans, Jumbo Loans, DSCR Loans, Bank Statement Loans, Bridge Loans, HELOC Loans, and Down Payment Assistance programs. That comprehensive knowledge allows us to see your full financial picture and make sure you are choosing the product that truly serves you best.

We also believe in transparency. From the very first conversation, we will be upfront about costs, timelines, and expectations. No surprises, no hidden fees, no confusion. Just honest, helpful guidance from a team that genuinely wants to see you succeed.

Most importantly, we care. Homeownership is a life-changing milestone, and we are honored to be a part of that journey for so many families in our community. Whether you are a first-time buyer, someone rebuilding after a setback, or simply looking for the most accessible path into a new home, Garden City Mortgage Team is here for you.

Frequently Asked Questions About FHA Loans

Can I use an FHA Loan if I have owned a home before? Yes. While FHA Loans are very popular among first-time buyers, they are not exclusively limited to them. If you meet the eligibility requirements — including the primary residence requirement — you may qualify regardless of whether you have owned a home in the past.

What types of properties can I purchase with an FHA Loan? FHA Loans can be used to purchase single-family homes, condos, townhomes, and multi-unit properties (up to four units), as long as you live in one of the units as your primary residence. The property must also pass the FHA appraisal inspection.

Can I get rid of the mortgage insurance on an FHA Loan? Depending on when your loan was originated and the terms of your specific FHA Loan, the annual MIP may last for the life of the loan or may be removed after a set period — typically 11 years — if you put down 10% or more. Refinancing into a Conventional Loan is another common way to eliminate mortgage insurance once you have built sufficient equity.

How long does the FHA Loan process take? The timeline can vary, but most FHA Loans close within 30 to 45 days from application. Our team works efficiently to keep things moving and minimize any unnecessary delays.

Can I combine an FHA Loan with Down Payment Assistance? Absolutely. In fact, this is one of the most popular combinations we see. Many Down Payment Assistance programs are specifically designed to work alongside FHA Loans, and our team will help you explore every option available in your area.

Ready to Take Your First Step Into Homeownership?

If you have been dreaming about owning your own home but have felt held back by credit concerns, limited savings, or uncertainty about whether you could ever qualify — an FHA Loan from Garden City Mortgage Team could be the answer you have been waiting for. These loans were built to make homeownership possible for real people with real-world financial situations, and we are here to make the process as smooth and encouraging as it should be.

You do not have to have a perfect credit score. You do not have to have years of savings. You just have to take the first step — and we will walk beside you for every step after that.

Reach out to Garden City Mortgage Team today. Your journey to homeownership starts right now.

📍 Contact Us – Garden City Mortgage Team

We’d love to help you explore whether an FHA Loan is the right fit for your situation. Don’t hesitate to get in touch — we’re here to help.

Business Name: Garden City Mortgage Team

Loan Officer: Shaun Utterson

Phone Number: 📞 (910) 444-9567

Email: ✉️ sutterson@emmloans.com

At Garden City Mortgage Team, we are committed to helping you move forward with confidence. Contact us today and let’s find the right solution for you.