Yes! I have a client who is pre-approved FHA and she had a bankruptcy 2 years ago! IIn any case, it is always good to know what your credit situation is. Having a recommended, trusted lender as a resource to put your credit situation in the proper context is invaluable.

Brandon,

In some cases people feel their credit rating is less than it really is...We would encourage you to meet with a loan specialist to determine what your options are.

Many buyers that cannot qualify for a loan at this time are exploring the option of a "lease purchase agreement." This is something else that could be considered if your loan search does not work out.

Good luck,
The "Eckler Team"

Lenders are saying it is very difficult to get a loan without at least a 580 credit score. You can work with a lender to improve your credit...many firms have credit repair programs. In the area where I live, we have some builders that have homes that they have not been able to sell because of the surplus...they will do a lease purchase as long as you are working on a credit repair program.

If you purchase a home after Jan. 1 2009 you will need 3 1/2 % for a down payment for FHA and 5% for conventional loans. The interest rate you get will depend on your credit score. More and more lenders will be changing discount points to people with low credit scores. One discount point is 1% of the loan amount. Your insurance rate will also be dependent upon your credit score. The lower your score, the higher your fee.

Reduce your debt, pay on time and curb spending. Ways to save money: try taking your lunch to work with you instead of eating out each day (a savings of $1,560 a year). Don't eat out in the evening unless it is a special occasion. Eat left overs and cut your grocery bill. Try car pooling to save gas money. Watch for store sales and clip coupons. Instead of going to the movies, have a movie night at home and exchange videos with friends. Put your change in a bowl each day and watch it add up. Go to garage sales and bazaars for clothing. Children's clothes and toys are often in great shape. Before long you will have your problem whipped and you will be ready to buy a house. These are just good tips for living with or without credit problems. After all...at some point you will want to be ready to retire and you will need retirement savings. Social Security and Medicare will not pay for everything you need in retirement. Start saving now.

Marilyn Hardison
Star Properties/GMAC
McAllen, Texas

Bruised credit can still get a loan.
There are many factors that go into an approval decision, but the recent credit crunch hasn't affected the underwriting guidelines on FHA loans.... and they are still 3% down. (3.5% next year)
The 3% can also be gifted to you by a family member.

The best thing to do is check and get prequalified with a loan officer. FHA may allow 3 or 3.5% down payment. If you don't qualify at least the loan officer can give you a good idea of what you need to do to clean up your credit and give you some goals to work on.

Depending on your credit score and FHA loan may work the best for you. I would contact a lender in your area and see what they say.
If they are good they can get you on the right track
J.

Brandon,

Your best bet would be to talk to a local lender who could tell you right up front if you qualified for a loan. If you don't at the current moment, they would be able to guide you on how to get your score up so that in a few months you might be able to qualify. There is certain criteria on your credit report that lenders look at more critically than others, so it is important that you have a lender help and guide you! Good luck!

It all depends on many factors speak with mortgage broker determine what they state after reviewing your file. Your credit scores, debt ratio, employment history these issues are reviewed when a person going to be qualified. Lenders now require down payment to purchase a home, with families better credit. Good luck
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You may first find out what impact your credit scores, e.g. you may own some bills ...etc, then you would just pay off those bills, or rent ...etc. and your scores will be up and improved.

Fix one or two at a time, and you may find a few months later, you are at a great position to buy, and at lower mortgage rate. (btw, they give different rate to different credit score, that is to say, with lower score, even if you can get a mortgage, you may end up pay a few hundreds more each month than you are supposed to).