Your best solution is to leasse-option home this will give you time to repair your credit and at the time,build some money towards your down payment atthe end of the lease-option.There are homes for lease-option go to http://www.dcsinvestments.net check the homes out.

Let's back up.
If you want to own a house, you need to have money and continue to have money when you own it. You don't want to be forced out of a house because of job loss or medical emergency, so you need to be able to handle six to twelve months of payments and have this amount set aside and available.

So you don't have this, and your really bad credit also reflects that you are not responsible with money.

The FIRST STEP is, you need to set up a budget, determine how much you make each month, how much you are spending and then figure out how to set aside a fixed amount every month. The fact that you have no money means, you are spending everything you make and probably more each month, you are not a good candidate to own a house until you establish and stick to a budget.

The good news is, owning a home acts as a forced saving plan. You make money three ways: You are building equity by paying down the balance that you owe, appreciation of the home over time, and interest payment savings at tax time. So get a blank piece of paper, draw a line down the middle, figure out your inflows and outflows....

Kim,

Take a close look at your question and put yourself in the shoes of a lender. It should be pretty clear that the first step here should be to repair your credit before considering the purchase of a home.

Contact a loan agent for thir input.

Good luck

How about NOT buying a house. It's OK to rent until you get the money thing figured out.

I agree that a lease option may be your best bet. Ideally, with an owner that would be willing to hold the mortgage after you demonstrate that you can make the payments for atleast a one year period.

The only way you could buy the home with bad credit and no money would be to find a rent-to-own or lease purchase that you can negotiate terms with the seller that would work for you. Here's the downside, because of the bad credit and lack of money I would almost guarantee that you would have around a 10% interest rate at the least.
I would recommend, as the others said, fixing your credit before continuing on. If you go with any type of owner finance you will be paying thousands and thousands and thousands more than what you would if you fixed your credit first. If you do decide to go with an owner be aware of the risks. Talking with a lender to have them check your credit is a good thing to do, but if you really don't want to talk with anyone you can check it yourself. If you go to http://www.annualcreditreport.com you are allowed one free report from each of the bureaus every year. I suggest to people that they pull one report every 4 months so they get free reports through the entire year. This is 100% free, no tricks, no funny "sign up for these emails", nothing... the only down side to it is that it doesn't show your credit score, just what has been reported and what is being shown when your credit is pulled.

Kim,

The previous responders were correct. You need either some money or good credit (hopefully both!) to buy a home. There are loans available if you have had good credit for only the past year.

Please check out the Community Action Project here in Tulsa. They do not do mortgage loans but do help get you ready for the application and process. They have a First Time Homebuyer Program that will help you clean up your credit and, if you qualify, help with your down payment. All at NO CHARGE! Call Shelli Davidson at 918-382-3200. http://www.captc.org

Let me know if I can help you with your mortgage or any other advice.

Thanks,
Tim Epps
Loan Officer
Fairway Mortgage
918-528-4010
tim@myfairway.net

Due to the tightened mortgage situation, the best thing to do is start getting your credit fixed by using a companies such as Lexington Law and then start saving. The next best is to see if you can work with a Realtor with a lease purchase but you will have to have some monies available.

Contact a mortgage broker UNLESS you all ready know your scores. If they are that bad best clear the credit , pay off debt, never close an account, save for a downpayment a requirement now with lenders.

However review your file with loan officer where they can assist you with directions options for you.

Owning a home you receive annual tax reduction benefits

You can't! Go to Oprah.com and download Suze Orman's new book "2009 Action Plan". (It's free for just this week.) Read it.
Then do what it takes to clean up your credit, save a down payment and join the ranks of responsible home owners! Good Luck!

Someone will surely show up to explain how as they have with every other person with no money and no credit.!!!!

My advice: Fix your credit and save up some money. Buying a house is easy, keeping the house is the hard part...

Best of luck, Dunes