I would work very hard to improve my credit and have at least 3.5% downpayment.
The home price will not go back up anytime quickly. Even if you have a property what is
the likelihood turning from bad credit to get served for judgment? I think it is high.

Blog post I authored which might assist you
http://activerain.com/blogsview/1148928/dallas-home-buyers-t…

Best clear your credit then move forward you won't be able purchase a home

Confer with mortgage broker

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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Lynn911

Joyce,

With your conditions, the chances are slim. Have you explored the options of seller financing or a lease option possibilities? Many people in your situation are getting creative and going this route.

I can work wit Scores as low as 550 with FHA and 3.5% down payment. if you are a veteran you can obtain 100% financing for a home purchase. Direct lender tkeaton@lendamerica.com

Hi Joyce, I've become more familar with NACA (the Neighborhood Assistance Corporation of America) lately. They have an office in Raleigh and Charlotte. They do offer mortgage programs that may be appropriate for you. You can learn more at http://www.NACA.com.

Simple, you don't! This is what got people into trouble in the past. No money down and bad credit is not a good way to start off. Home maintenace costs could get expensive if something were to go wrong. Get your credit fixed and save some money before you buy.

Hey Joyce,

Today you really have to have good credit to qualify for mortgage options. You really need to start with knowing what is in/on your credit report that is causing your score to be low. Then you need to work on it to bring your score up. There could be things on there that shouldn't be and need fixing? There is no quick fix. You should start with a loan officer to have them go over your credit report with you and suggestions for improving your score and how much do you need to increase to qualify for a loan. Great suggestion to start saving for the down payment while you are working on your credit. You want to have a good score so that you have a good interest rate on your loan. And it also can affect the amount of your home owners insurance as well. You are making the first step by asking this question and heading in the right direction. All of your work will be worth every ounce when you get your house.

Good Luck

You need to have satisfactory credit these days to qualify for any mortgage. Banks just aren't lending money to credit risks anymore. And for that matter you most likely will need to come up with a down payment as well, at least 3.5%. There are very few $0 down programs left and they usually have restrictions.

You should first speak with a lender to find out if you are qualified for a mortgage now. If the credit is not high enough, then you can get some ideas to improve your scores and then work on executing the gameplan. In the meantime that will give you the time to save up some $$ for a down payment.

Best of luck!

You may not be able to buy a home now, depending on certain conditions. However, that doesn't mean it isn't time to start toward that process. You will need to find a good realtor and loan officer who can teach you with what you need to do to start improving your credit.Then be diligent in getting it done. Let them hold you accountable to finishing the task. REMEMBER your goal and objective..just because you can't buy NOW, DOESN'T mean you can't buy LATER.
Start the diligent effort to repair your credit, the joy of home ownership will be all that much sweeter!
GOOD LUCK!