Easier Qualifying: FHA or USDA

[lauramg80]

I have several older collections on my report. My lender told me it was going to be easier to qualify for FHA than USDA. I thought USDA was supposed to be the easiest?

[Anonymous]

I had several unpaid collections from as recent as May 2010 and got a USDA loan.  It probably helped that my score was over 640 - we just couldn't afford the 3.5% down payment so USDA was ideal for us.

[rross]

I always thought USDA would be easier too.  I think it ends up being more difficult b/c FHA can be underwritten directly with your lender, while USDA requires not only lender underwriting but also USDA underwriting.  My guess is with FHA, the lender can can be lenient with some requirements, but USDA is so super strict that you MUST adhere to the qualifications or you're out.  (I'm no expert - just guessing!)