Hi Vivian - FHA is probably the best program based on the limited information you listed above. FHA is more lenient on credit issues and credit scores than Conventional financing plus they only require a 3% down payment. If you find the right house and the right seller that has sufficient equity for the seller to contribute torwards your closing costs, prepaids and down payment through a non-profit down payment assistance program, then you can still get in for minimum out of pocket and a reasonable rate and monthly payment. I would be happy to assist you in determining what options are available if you would like to apply on-line athttp:// www.katiesparkman.com so that I will have all of the necessary information to properly answer your questions and point you in the right direction. I also highly recommend Robert and Terri Hayley with Keller Williams if you are in need of a realtor once we work out the details on a pre-approval. Feel free to contact me with any questions or if I can be of further assistance.

Sincerely,
Katie Sparkman
Sr. Loan Officer
Cornerstone Mortgage Company
972-238-7400, ext. 104
ksparkman@houseloan.com

Mon May 19 2008, 10:13

Yes that is true, I am a Dallas real estate agent, and Dallas home mortgage loan officer, your credit scores will need be improved, and in order too purchase a home you'll need 5% to 20% as a down payment. Where did you get your credit scores, thru a mortgage broker? Contact my office if I can be of any further assistance. 972-699-9111

Sat May 17 2008, 14:03

Vivian,
Wait until you have 20% for a down payment, and can bring up your fico score over 600. Save your money for the next six months. As a general rule of of good financial health, you should never buy ANYTHING you can't afford.
I'm sorry to say this: but, you are the life blood and pray of the lending community. Because your score is lower, you will pay more in interest. If you get into a house and have less than 20%, you will be paying many times what the house costs in interest. When you cannot afford their payments, they foreclose. This is a vicious cycle. Lenders LOVE people like you. Do the healthy financial thing and the responsible thing: save until you have 20% down, pay off some credit card bills (if you have them) and then revisit the situation. Housing prices aren't going anywhere for the next six months.

Sat May 17 2008, 13:06

Vivian,
There are programs out there that can help you find a way to purchase a home if you qualify.
I would suggest that you check with friends of yours that have purchased homes recently and see who their lender was and talk with them first.
One of the main things that a lender will want to know about is your employment situation, they want people to be employed for 2 years with the same employer. For your credit situation, you will need to explain to the lender or broker how your credit score got to this point. Life happens, but at this time that we are going through a credit crunch lenders want people who have proven they can handle thier payments on time every time.
I would like to recommend that you check out DaveRamsey.com and a program called Financial Peace University. This program will help you to get your finances straight and help you build to the time when lenders are seeking you out.
I don't have a crystal ball, but everything that I hear is that there will be plenty of homes available for the next couple of years and the better your credit score is the stronger a buyer you will be. I would hate to see you become one of the million of folks who is struggling to make their mortgage payment in the next 2 years.
Working with a good Realtor and lender will help you to see exactly what is best for you at this time.
I wish you the best and I hope that you can find a home that you not only can afford, but one that also meets your needs.
Have a great weekend!

Charles Coachman

Sat May 17 2008, 11:55

Vivian,
Many FHA programs are NOT score driven...and many lenders currently have DPA programs to assist with the 3% down...So yes it is very possible to still get 100% financing ...Call meso we can discus further...210-430-2055

Sat May 17 2008, 10:42

Dear Vivian,

Congratulations on taking the first steps to becoming a homeowner. It is an exciting time to be a Buyer in this market. And there are still mortgage programs for Buyers like yourself that do not want to part with their cash for a large down payment.

FHA programs are most popular right now because these programs do not require a high credit score. The emphasis with FHA is the ratio between income and debt. So if your income is good and your debt is within reason, this might be the best choice for you. Also, there are Down Payment Assistance programs that are available to help as well.

The best advice I can give you is to have a qualified lender take a look at your financial position and then share with you the programs that would be available. Then you can make a decision on what makes the most sense for you.

I have a website that provides a FREE Pre-Approval form that you can fill out online and submit. I will then have one of my trusted Loan Officers review it and contact you with the results. If you are interested, click the link below...

http://www.GetPreApprovedFREE.com

Please feel free to call or email if I can assist you in any way. And thanks for being a Turlia Voice.

Alan Wynn
Like NO ONE Else!
214.729.5582
info@DallasHousesOnTheWeb.com

Sat May 17 2008, 08:23