BEST ANSWER
The only people lending money to people with scores below 580 (which is low) are loan sharks (BEWARE!)
Just because you have a low credit score doesn't mean you can qualify for a loan on a cheaper home.
I would advise you NOT to buy a home but spend more time and money getting your credit repaired and paying down some of your debts and get a system in place that would allow you to pay your bill on time.
A 502 credit score is very low and indicates serious red flags to any reputable lender.
Call these people, I worked with them before to help clients repair their credit and fairly quickly all things considered. They can help remove derogatory remarks on all reports if unjustified or if the places reporting negatively on your report cannot prove its justification and thus raising your score by removing negative remarks.
You need to be PRO active in repairing your credit and taking care of it like a delicate baby.
Better Qualified Credit Repair
1-888-533-8138
Thu Jun 25 2009, 18:53