Pay off your debts, do common sense things to improve your credit. Save your money, buy a house when you are ready and can afford it.
This could take years. In the meantime you will be improving your financial life by taking away from your personal enjoyments. You stop getting cable tv. Get rid of the internet. Lose your cell phone. Get rid of anything you do not have to have to survive. If you could save $200 a month after 1 year you would have $2,400. After 3 years you would have $7,200. If you could save even more a month, it would increase a lot faster.
It comes down to one simple thing. One thing only...
Do you have a stronger desire to have a house someday or
Do you have a stronger desire to have some of your creature comforts today?
Whichever is stronger will dictate what happens next. You can suffer now and enjoy later, or enjoy now and never have the house. It is that simple.
It is that simple, I made similar choices and sacrifices myself. For over a decade (remember the bubble?) I saved all I could I could never catch up. Now that prices are dropping I will be able to buy for cash. A decade is a very long time, but I will have made it work for me in the end. It really sucked for a lot of years.
Talk to a local loan officer, (maybe at the bank you deal with), for a pre-qualification for FHA.
They can advise you where you far short, so you can work on the right issues moving forward.
If you have poor credit you need to address those issues if you are declined for a loan. Life is based on credit scores resolve all for anything you like purchase based on credit
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Are you working on improving your credit?
FHA ... for the time being anyway ... only requires 3.5% down, plus whatever costs there are not covered by concessions. If you would like to email me at Derek@DoorToDreams.com, or connect with me through my Trulia profile, I will put you in-touch with an FHA loan expert.