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You are correct to think that FHA helps people that needs help. Since 1934 when the banks required 50% down, FHA was there to make homeownership more affordable. FHA in and of itself is not credit score driven, however what you need to know first is that FHA is a government insurer, that insures the lender against borrowers that default HELPING borrowers to afford a lower down payment. In fact 3.5% is the minimum required. FHA has less strict credit criteria and underwriting guidelines HELPING borrowers who have less than pristine credit or have endured and redeemed themselves from some of life's challenges. FHA allows the seller to contribute up to 6% of the purchase price to HELP borrowers with the closing costs. I could go on with the purpose of FHA but I think you get the idea. The funds to consummate the transaction comes from the lender themselves. Because of the industry implosion and he who holds the funds makes the rules, then the lender can and does superside over whatever guidelines that FHA presents. You stated that you no longer needed FHA if FHA could not help you. What kind of "help" expectations did you have??? Even though you did not state, your comments indicated that you could use your credit to purchase a house as an alternative to FHA but was turned down from FHA Insured financing because your credit scores were too low. Well, realize that alternative financing will require >80pts higher in credit score, 6.5% higher in down payment. In addition, if you do not have 20% as a minimum investment the private mortgage insurers we demand that you walk on water.....no matter what the lender will allow. It is tougher out here for qualifying man as well as property for mortgage lending. I've seen nothing like in my 36 years in the business....however, my teeth were cut on FHA loans and FHA I advocate still, even through the subprime "we turn down nothing but our collar" philosophies. The main thing is that FHA continues to help people all over the nation rich or poor, 1st time as well as multi-time home buyers. Unfortunately, they could not help you...yet. The lender hopefully, counseled you on how to improve your score so that FHA can help you too. Take care,