FHA loans are best for borrowers who have lower credit than it takes to qualify for a conventional loan. Still, those with higher credit might choose it for other reasons. Conventional : This is an "open market" loan type. In other words, the loan is not directly backed by the government.
Conventional Loans When you apply for a home loan, you can apply for a government-backed loan – like a FHA or VA loan – or a conventional loan, which is not insured or guaranteed by the federal government. This means that, unlike federally insured loans, conventional loans carry no guarantees for the lender if you fail to repay the loan.
Interest Rates Fha Loans Fha 500 Credit Score FHA will back a loan with a credit score of 500. However, there are really no lenders that will give a loan for such a low score today. 620 is the minimum for most all lenders. I do have a lender that will help try to improve your credit score. If you would like any information on this please feel free to contact me. carolyn guy performance Realty