Since you have posted there is a lender that will work with 580 and still get you good interest.

Hello,
Please contact me asap. We have Lenders that would accomodate that score.
1800-839-1019 ext. 135

Josh Stewart

How much is the purchase price?
You can maybe get hard money loans

Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.

Hi Hecky,

You probably need credit repair in order to get your credit reports cleaned up so that you get the improved score to be able to not only qualify for a mortgage but be able to qualify for a GOOD mortgage. See the higher the score, the lower the interest rate on the money that you will save. When you speak with your favorite mortgage broker ask them this:

If my score is 680 what is the expected interest rate?
If my score is 750 what is the expected interest rate?

They will confirm this. Imagine having an excellent credit rating, something you can be proud of. Think of how much easier your financial life is going to be with excellent credit. Good luck!

Have you considered a owner financed purchase or a lease purchase? In this market you have to get creative. I just sold a home last week where the purchaser could not get a loan and the seller decided to finance the whole thing. I have other clients that are willing to do this if you are interested. Please feel free to call me if I can be of service.

Joe Folsom
Modern Rustic Living
Lifestyles & Real Estate
Keller Williams Realty
Barna Log & Timber Homes
Phone: (770) 722-5098
eMail: Info@ModernRusticLiving.com
General Real Estate Web Site: http://mlsarealistings.com/moddernrusticliving
Log Homes Web Site: http://modernrusticliving.com/

It's pretty much impossible with that credit score right now, and I have another client in the same boat. He has a substantial down payment which means he'd be much more invested in a home, but he can't get a loan right now. I think it's unfair because I think someone with a big chunk of money behind their purchase is less likely to let the home slip away to foreclosure, but I don't make the rules.

You should talk to a mortgage broker to see what you can do about your credit score. You can also see if maybe you're a candidate for manual underwriting. Call around and see who offers manual underwriting in your area.

You can pull a free copy of your credit report at annualcreditreport.com. Dispute everything on there that is incorrect and/or outdated. All disputes must be handled within 30 days (I'm pretty sure it's 30 days). If they don't actually verify the information, they'll just delete it. And of course, if they verify the information they'll update it.

The fastest way I've seen to raise a credit score is to lower your debt balances. I know you say you have no debt or credit cards, so what is making your score so low? Do you have car payments? Anything at all that you can lower a balance on?

Heckyesimijess,

Your best bet would be to look for FHA loans. They don't qualify based on FICO score. Bank of America usually has Loan agents who are qualified to do FHA loans.
If you would like I can provide you with the name and phone number of a Loan officer that I work with who is pretty experience with FHA loans.

Good luck
Rochelle Yousefian
Realtor, e-PRO
Century 21 Hallmark Realty

Hello Jess and thanks for your question.

Unfortunately, at present, you and I both live in areas within the United States that are heavily plagued with foreclosures and short sales. As a result, banks are less likely to provide loans to buyers who do not at least the very bare minimum requirements for credit-worthiness, which, presently, is a FICO mid-score of 620 plus a 3.5% down payment plus funds to cover closing costs. Your situation is further complicated by the fact that you were self-employed, and to be frank, lenders hate us self-employed people because our income is truly NOT stable, so there's a great deal more hoop jumping as a self-employed person trying to get a loan than there ever would be for a regular W-2 employee.

Since any loan that you are likely to get to buy a home will simply be at outrageously expensive interest rates, which may not be affordable in the long run, my suggestion is that you take the time to talk with a mortgage broker (not a bank) to see what can be done to assist you in repairing your credit, increasing your FICO scores and, generally, moving you toward being able to purchase a home within the next 4 months to a year. By the way, NOT having credit cards is actually depressing your FICO score, so getting at least one will help increase that score by as much as 20 points immediately.

Work with a qualified mortgage broker, and I'm sure we'll all be able to congratulate you on your new home purchase very soon!

Good luck!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA

You might try American Acceptance Mortgage if you haven't done so already. They help many of our clients that have unusual circumstances.
Best of luck to you.