I know everyone wants a quick fix...but I promise that the paying off your balances will get you there.
Best of luck.
You can definitely, look for an agency that does credit counseling, and can help you to repair your credit. Your best bet, is to aim for an FHA loan. They require a credit score down to 580, and collections older than 24 months, do not need to be paid. Any collection, or charge off newer than 24 months, needs to be taken care as always. With an FHA loan, medical bills do not need to paid, if they are in collections status, however, from an underwriter perspective of view, they are used to see your pattern of repayment. Any judgment, liens, or derogatory such as: Short Sale, Deed in Lieu, Foreclosure and/or Bankruptcy are extremely relevant. For Deed in Lieu, Short Sale and Foreclosure, must pass at least 3 years. For Bankruptcy Chapter 7, at least 2 years (after discharge) and if you can prove extreme hardship (other than financial mismanagement), you can do with 1 year out of the discharge date.
FHA requires only 3.5%, and the interest rate does not reflect the credit score risk factor (no adjustments for low credit scores). You just need to find a good lender, with flexible guidelines; there are still some them out there.
There is another product for primary residence home buyers, it is based in the CRA Lending policy most lenders are mandated to have. Some of this programs allow to 97% LTV, no minimum loan amoount and specially, have very flexible underwriting guidelines.
Some real estate agents, are completely ignorant about this kind of programs. They are not the best source of information. As they may discourage you of looking for this (CRA) loans, because they are ignorant about it. A red flag thou, if a real estate agent, does not know about CRA, then you should wonder what else don't they know? Your best bet is to go to a Bank, and inquire about CRA.
I wish you the best of luck .
I suggest you use it and work on those scores - pay down any debt - get on a budget that will allow you to improve your scores and increase your down payment.
It just may not be the time for you to buy right now.
Even if you could qualify for a loan - do you have savings to use as a cushion in case there is an emergency or something big breaks in the house??
Unlike renting, you won't have a super to call in to fix things.
Don't take on the financial burden of home ownership until you have your own finances in order...seriously........this may not be what you want to hear, but sit down with a loan officer and find out how to improve those numbers....save more money.....THEN and only then buy a home.
Good luck........and all the best!
Another thing you can do is to contact a Real Estate agent, commit to buy a home with him, so he will recommend you resources to improve your credit, if he has good contacts.
When a client of mine doesn't qualify for a loan, I always give them resources to improve their credit within 2 months or so.
Been assisting my clients improve their ficos for the past 8 years doing mortgages and real estate. Will gladly give you information and my lender contact whom I work closely together with to get you to loan approval.
Call me if I can be of assistance. Looking forward to hearing from you.
Thanks for contacting me. I do have someone in mind that can help you with your credit scores and can help you get into a home. If your interested, please give me a call and we'll chat. At that time I can give you the name and phone number of the person who can help you. Hope to hearfrom you soon.