Hello,
I can tell you from personal experience it does not take long to get your score up. You just have to focus and make little sacrfices but it is well worth it. I am on way to homeownership with less worries.
Once your credit score is higher you can qualify for an FHA loan.
If your looking to purchase in Georgia you can receive downpayment assistance from the Georgia Dream Program and link it with Cobb County Housing Inc. this is 14,000 or more downpayment assistance.
Please view the website as they have various qualifications. http://www.dcaloans.com ( Georgia Dream ...Clark Howard's site)
http://www.cobbhousinginc.org/ (if your purchasing in cobb county you link the 2 programs) http://www.atlantaada.com (if you wish to purchase in the city of Atlanta up to 14% grants)
If you not in Georgia, contact your Community Affairs Department in your City and ask about progams for first time homebuyers.

Hope this helps.
C

Marie,

Most lenders will require a minimum of 580 for FHA and higher for conventional, but the best thing you can do is try to get these scores higher by paying bills every month on time, and then trying to get rid of your debt.

Do you understand why your scores went this low, because I think you need to know and understand what went wrong in the first place.

As far as percentages goes, there are very few 100% programs left. FHA is 97% and you need to put 3% down or do a down payment assistance program to help with this 3%.

You can check one program called NACA, they do have a 100% program and they do character based lending. It still may take you 6 months or more to get approved for a loan. http://www.naca.com

GOOD LUCK!

You may want to check the following website http://www.myfico.com/. It may shed some more light on your question.

Marie,

There is a chance you may be able to get a loan, but you may have to suffer through a higher intrest rate for a year or two.

As far as what you will need to put down 3% is the least amount I've seen. With a lower credit score it will help if you have more to put down.

I know some great lenders that could review your situation and even help with ways to get your credit score up if you are not able to obtain a loan at this time.

You can go to http://www.askjimharvey.com E-mail him and ask him about your situation. Tell him James sent you!

Marie,

A lender will have the best answer, but I was at an outing 2 weeks ago with a group of lenders. They were talking about the market, and one of them was bragging to us that she had just gotten an FHA loan through on a 580 score. The rest of the group groaned a little, and said that 600 is that best that they were able to push though recently.

Given that conversation, you might have a little ways to go yet.

Good luck.