First thing you need to do is straighten out your credit by paying off and or catch up with all delinquent accounts. Get your most recent pay stubs and 2007 and 2006 W2s together, then go speak with a Mortgage Rep. See what your Credit score is and as well as see how much you can qualify for. Supposing you score is high enough, you may be able to apply for an FHA Loan with a good explanation as to why your scores are that low. (bad, using your word).
Century 21 Calabrese
Lenders are following strict credit guidelines. If your credit score is below 640, which is the min score needed for a FHA loan it will be just about impossible to get a mortage loan from a major lender.
Kawain Payne, Realtor
It has almost been a year since you posted this question. Just wondering if your credit was fixed and how you fixed it.
Your input will help many here on Trulia, that also have bad credit.
Jes Sierra, B.Sc.
C21 Beachside, Realtor®
Chino Hills, CA
Diane Wheatley, Broker
Move Up Properties Real Estate Brokerage