Posted by Shawn on May 25, 2000 at 23:43:44:
This is a little known fact. I did not say the program has no affiliation with the government but the funds provided by FHA are private funds and to my knowledge has always been private funds. The government has a less stringent program and it is called Freddie Mac. I am not sure if you know much about the programs like Neiamiah, the Home Providers and others that are allowed to donate money for a buyer to put nothing down. But programs such as these are only allowed by FHA (HUD) NOT Fannie Mae/Freddie Mac. The reason is the private money supporting FHA sees profit in making more people into homeowners. The government on the other hand does not care and will never deal with such companies. Unless you are a A+ borrower the government wants to see you put down at least 5% of your own money on a new purchase. FHA on the other hand will lend to a borrower with a 550 credit score which is pretty low and give the borrower 97% and allow the seller to donate 3% towards closing.