I've been at the same employer for two years, rented the same home for two years, and haven't paid my rent late. My house is infested in mold and we are expecting our second child, and quite frankly the house is just too small. With an income of 3,000 a month I really want to buy a house, I know I'm going to be at the same job because I signed a contract. Although I just got approved for a 33,000 loan through my credit union it was based off of my debt ratio, not my credit score. My credit score is 502. What can I do!?
I suggest you contact the St. Martin Center at 814-452-6113. They have a credit counseling professional that can assist you in repairing your credit score. Beware of private concerns that offer to do so for a fee. St.Martin's Center credit counseling does NOT charge a fee, and is legitimate.
You can get approved with a 600 for FHA and just 3.5% down! I have a great place I send my clients with scores under a 640 to get approved. If any company can get you approved its the The Lenders Network, I have closed some deals I never thought I would, but they they approve scores below 600 for FHA and VA loans.
You should probably take the offer from the credit union. You won't qualify for anything with that score except an extremely slim chance you could get a FHA mortgage with 10% down. I say slim because that's pushing the bottom limits and not many people do these anyway. It also sounds like you may have some debt to income ratio issues so you can either take what you were offered or wait and build your credit and reduce your debt.