The Federal Housing Administration (FHA) and The Veterans Administration
have much more lenient guidelines than other lending institutions. Lenders
who provide these loans are scrutinized very closely by the Government.
Only the elite of Lenders have the ability to do FHA and VA loans. Neither
of these loan programs uses credit scores to determine loan approval.
Instead the actual credit is evaluated on a case by case basis. This enables
those that would normally qualify for only a Sub- Prime loan have the ability
to get a great loan at a substantially lower interest rate. Low down payment,
Down payment assistance, Gift monies, and up to 6% seller contributions are some
of the advantages of doing these types of loans.
