What is a good loan program?

What is the difference between a Guaranteed loan program and a direct loan program through the USDA?

• I live in Washington state and income wise we qualify for both wondering which was the best option... I have a credit score of 598 and plan on paying down my credit cards to increase it before applying. My boyfriend doesn't know his... but he has paid off a 3000 dollar car, one credit card that went to collections, and has made consistent on time payments on his 2010 honda civic.But he still owes about 700 dollars for an old bank account. Maybe an FHA home loan so we can buy in non rural areas??? I don't know we need all the advice we can get PLEASE HELP!!!!!!!!!!!!

• Answer:

  Contact your local usda office. The usda funds the direct loan, the guaranteed loan will be processed through a lender, when you contact the usda office, email or phone, they will give you a list of approved banks. I read the minimum score is 640, if you pay down your card limits you should be close to that score. Just ask their advice on it, this program does run out of money, so it may take a few additional months.