Federal Home Loan

While both guarantee programs offer great benefits, the interest rates offered to the borrowers are still determined by the credit score of the borrower, regardless of the federal home loan program utilized. It is advised that a borrower receive a copy of his/her credit report to scan for inaccuracies. If the credit score is low, the borrower can raise it quickly by simply paying down the credit card balances, if any, to lower than 20% of their total limit. This can raise a credit score up to 30 points in 30 days. However, It is better to have zero debt.