You do have hope! My company will go down to 531 credit scores on purchases with and FHA insured loan. You have to have 3.5% to put down on the property and have shown some credibility in paying off your recent debt. Rent checks, auto loans, credit cards, utility bills, etc. all work. My contact number is 888-536-3001, ext. 1540 and my email is firstname.lastname@example.org. My name is Jake Johnson. Talk to you soon!
You may be able to get a loan depending on why your credit is 540-580? My company does have a program that allows you with a 580 to go to 100% as long as there is no derogotary credit or it must be paid off. Also I have an FHA lender that will allow you to go to 97.75% with 580 and the seller can even contribute the other 2.25% into an acceptable down payment assistance program. Please let me know if I can be of further assistance to you as i'm always available 814-308-3276. Thanks and good luck
Also, you really want to find a trusted lender or FAIR mortgage broker. They can give you straight answers as to when and if you are ready for financing. Clean credit is your first step toward owning property!!!
As far as foreclosures, or REO/Bank Owned Properties, you will need money for U&O, and any repairs needed based on the U&O report.
Lastly, you may need money to hire a contractor to turn on and turn off the utilities if the foreclosed property has been sitting a while!
Hope that helps,