YES YOU CAN!!! My company is the largest FHA lender in the country and can still do down to 500 credit scores on purchases and refinances. This is not a joke. Most brokers are limited right now to minimum 600 credits scores, but we are not. We are one of the largest company's in New York and we are making things happen. Please call me at 631-944-6800 xt. 1540 or write at jjohnson@lendamerica.com. My name is Jake Johnson and I've been a loan officer for 7 years. YES YOU CAN!!

From the below answers I have previewed, you are receiving good advise. I have a mortgage banker who I send quite a bit of clients with situations such as yours, with a few "Blemishes" Normally these can be fix'd / repaired with the Effort coming from you. It's best to consult with a good mortgage banker who can give you a good idea what is needed to attend to your situation, and in the meantime, as mentioned below, consider doing a Lease Option to buy while going through this. I must foreward you that I advise my clients (sellers) when considering a Lease Option that they should get a down payment (non - refundable) because in cases like Lease Purchases you need to be committed to the purchase and the best way for that is to be invested in the property. But you should be motivated if going this route. Also you purchase the home under a Lease Purchase at full listing price. So start with the basics, get your free credit reports and start doing your homework, also when you get a chance see Dave Ramsey's website
he has lots of experience assisting people with Credit or Blemishes as I like to call them. You can do it!
All the best to your future. John and Linda Cramer 251-599-5799

Most of the lenders I'm currently working with want a 620 or higher for a 100% loan. If you have money to put down, some of them are willing to accept lower scores, but I think that may be a stretch at 500.

This does not mean you are completely out of the market. Some sellers are willing to do a lease with option to buy or owner financing, but will most likely require money down or an "option fee" up front.

There are loan programs such as FHA which are not credit based. Please do more research before and be sure the people you are getting advice from truly know Real Estate as provided on this site. The best advice for you has already been given, speak to a mortgage professional. Keep in mind, having a credit score that low will make it more difficult and more costly to borrow money.

The short answer is no, you can't. Lenders are taking a bath on loans that they gave to people to bad credit. A 500 score is about as bad as it gets..not trying to burst your bubble, it's the truth.
You need to work to get that score up, which is easy to do. My first question from a loan officers stance would be why is that low? Non-payment, lates, high balances, what?
Find an LO, or credit repair agency, that can help you work on getting it up.

Correct me if I'm wrong, but you're really looking for a home. And if that's the case, there are many ways to purchase without a home loan...at least without getting one today. Lease-option, lease-purchase, subject to, contract for deed, wrap mortgage, seller financing, equity sharing, land contract, and more. None of these requires a new loan. None require bank approval. And some owners/sellers will be more particular about your credit than others will.

One point: Owners and investors will be more willing to excuse someone who has poor credit if they once had good credit, something happened to destroy their credit, but prospects are good for rebuilding that credit. Owners and investors won't excuse someone who habitually has poor credit...the classic "deadbeat." If you fall into the first category, your chances of purchasing are reasonable. If they fall into the second, your chances are very poor.

Hope that helps.

I don't think so, however if you contact a Mortgage Professional most will give you advice on how to improve your credit score. You must listen and follow through.