I would advise you to see a Loan Originator as soon as possible. If you do not have good credit they can tell you what you can do to correct and improve your credit score.. Underwriting for a loan has become very tight and your credit score is very important. Start paying off any debt you have if you have any extinuating circumstances for the "dings" against your credit score, let the loan officer know. Sometimes the loan officer can look over a negative ding or two if you have a good reason. Also, find a good Realtor. One you feel comfortable with and can trust they can direct you to a good loan officer and help you on the road to get a home.
One other option, the owner of the house might carry a contract to buy for you until you can correct your credit score and obtain financing. Again, contact a Real Estate agent in your area that will listen to your needs and help you.
Good luck and keep me posted. Let me know if this was of any help to you.
Their are several private investors with house to sell, with little money down. Some of these houses need work. Some are not pretty but they are affordable. How large a house do you need? Some can be bought for contract for deed other private investor will fund for you for a slightly higher % rate than someone with good credit would pay. If you are not picky about the location send e some more information to
firstname.lastname@example.org. I will try and hook you up with a private investor.
You might be able to find a seller who will let you buy his home on contract. That is, the seller will finance it for you for 3-5 years or so while you build your credit back up. When the contract expires you will have to go to a regular lender for a mortgage, so it's imperative that you be diligent about beefing up your credit score. The drawbacks to contract sales are: 1) Your choices will be very limited, and 2) The seller will probably want enough of a down payment to cover his closing costs, usually $5,000 oir more.
Don't give up! Owning your own home is still the American dream, and iit's a worthwhile pursuit. As long as you are renting, you are just making the owner's mortgage payment for him. You might as well be putting the money toward a house that will be all yours someday.