Hi Latessa:

In addition to the $8,000 stimulus which is basically free money, there is also a down payment program being offered. Governor Steve Beshear and the Kentucky Housing Corporation have announced an initiative to provide up to a $4,500 for a down payment and closing costs for first time home buyers who obtain a loan through the KY Housing Corporation. The program will be administered by the KY Housing Corporation and will begin on May 1, 2009 and run through November 30, 2009. The First Home Advantage Program offers a 10 year loan that defers payment with a zero percent interest rate until July 1, 2010. After the initial deferment period, the loan will fully amortize over ten years at the rate of 6 percent. If the borrower pays off the loan before July 1, 2010, KY Housing Corporation will forgive $300 of the principal balance (Office of Governor Steve Beshear).

You will need to work with someone to get your credit scores up before you can obtain a loan. There are several institutions out there, but I would recommend talking with a Mortgage Broker and asking them who they recommend to help you, usually a real estate attorney or a company they know that is reputable. Credit repair can sometimes be cleaned up quickly. However, don't go with just anyone for credit repair.

Good Luck and I hope you are able to take advantage of some of the great programs being offered.

You should discuss your situation with a reputable local mortgage lender to find out if you can qualify for financing. you will be eligible for the credit if you close on a house by nov.30 of this year. This is not a grant,it is a tax credit which you apply for after closing. in other words you cannot use it for down payment,closing costs,etc.