Credit markets hav tightened significantly in the last several years regarding minimum standards to qualify for a loan. What many individuals don't know is that not only do underwriters look at the score, which is the first thing that is looked at, but there is also emphasis placed on why the score is where it is. You would want to speak with a lender who can not only help you increase your credit score, but also look at your entire report the way an underwriter would. Although you do not have a credit qualifying score right now, I have helped customers improve their score within 30-90 days, depending on their situation, by using a program that comes directly from the credit bureaus to help your score increase. If you'd like more information, please feel free to reach out to me. You're not that far away from owning a home. Also, just food for thought, you'd rather have any unresolved debt taken care of and/or credit cards payments lowered before you purchase rather than later, it's just a financially responsible thing to do. Too your success
As mentioned by Mike, it is possible, but there are severe limitation when your score is below 620. As a broker, I do have an FHA lender that lends down to 580, but there guidelines are much stricter and rates nearly a full point higher.
Since you have time (you mentioned 9 months), depending on what the reason for your credit score is, you may be able to work on it and get it up to 620 or above to qualify for standard FHA rates with lenders. It is important to know that it is lenders that set the minimum credit score to which they will lend. I have worked with several clients to help them work on improving their credit score to get up to a level where they can qualify for the best rates. My information is below. Take some time to read this article as well by my boss on how to improve your credit score: http://www.moneypress.com/how-to-improve-your-credit-score.htm
I'd love the opportunity to work with you. Give me a call or email me for more information.
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In the next nine months, your emphasis should be working on getting those scores up to the mid 600's, at the very least.
I have no idea what caused your low scores, but that's where your attention should be focused..
Pay bills on time - don't use more that 50% of your credit limits (so pay down high balances) , and make sure all the information on your scores is correct.
You didn't mention anything about a down payment............so........If you don't already have a savings account - start working on that, as well.
If your credit score stays in that range, you will not qualify. Hard money lenders and lease options may be the exception, but you will pay some high premiums if you get a taker.
Your best suggestion is to find a local lender who will work with you to improve your credit. As a licensed lender I've done this with clients in the past successfully. Removing legitimate errors, paying down certain debts, maintaining a clean history can all be steps in the right direction. The sooner you start, the sooner you may be able to buy. Depending on why your score is at 590, you may be successful within a few weeks or months of achieving a score of 640 or better.