Seems I forgot to answer the second part of your question. Owner finance makes total sense - it is the same as a bank finance only it is the owner who is financing. Downside: there are less homes out there with owneres that wnat to finance, so you have less options.
Hope this helps
Mortgage lenders will pull your credit report from the three major credit reporting agencies and will use your "middle" score. If it is below 620 you will need a nice downpayment ( no less than 10%). If it is below $580 you will need no less than 20%down. Anything below 580 will be very difficult (if not impossiblle to finance).
There are houses out there in which the seller is willing to finance the purchase , no mortgage lenders involved.
Hope this helps.
If your negative items are over 2 years you could have a shot on obtaining a mortgage under 2 years will be difficult. Also if your debit ratio is high on credit cards reduce those balances your scores can increase, dont' be a late pay current late pay will drop your scores by 30 per item
IF I knew more I might be able to obtain a loan for you many more questions that need answers.
I did own a condo in Austin for approximatly 18 moionths on a Trust Deed and eventually sold it and paid off the seller.
The "lease options" would not have given me a Sell option, when I moved.
I do have some cash, 10-12k, I could put down if I could find a Owner/Investor willing to work with me.
I almost signed a lease for $1,250 on an apartment, but hate to rent...
I would like to know some opinions on ( lease option Vs Trust deed for sale)
Or if the best choice is lease for 6 months and get an FHA
Here in New Mexico this is considered buying the home on a real estate contract where you would make payments to the title company and the seller would receive anything over what is owed every month.
If your FICO is above 580 you may be able to go with an FHA loan but the best person to answer this question would be a motgage lender or mortgage broker.
There are many ways to accomplish the goal of home ownership, especially if you have down payment money.