There is a common misperception among consumers
that deserving homebuyers and existing homeowners can
no longer secure financing. Nothing is further from the truth!

Yes, today's credit market requires more-stringent lending
standards and tightened credit-quality guidelines than in years
past. However, there continue to be numerous home loan programs to assist today's homeowners and homebuyers. An FHA loan program offered through Summit Mortgage is one such option.

FHA loans are a type of mortgage loan insured by the Federal Housing Administration. The federal government initially created FHA loan programs to encourage home ownership. The FHA does not supply the loan; it simply insures the loan to limit the risk to the lender.

An FHA insured mortgage can be used to purchase or refinance a single family home, a multi-family home, or a condominium unit. FHA loans allow borrowers without traditional credit histories or income to qualify for a home loan at a competitive rate. FHA loans also have unique features that ease qualifications for first-time buyers to obtain a home loan with a combination of low down payment options and flexible lending guidelines.

FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and help if there is ever trouble making the mortgage payment. Because an FHA mortgage insures the lender against loss, an FHA mortgage typically has an interest rate that is competitive with the best in your market and lower than the rates charged for subprime and other non-prime mortgages.

FHA not only helps people buy a home, but helps them keep it as well. In return for protecting lenders against loss, FHA requires financial institutions to offer assistance to borrowers experiencing difficulty making mortgage payments.