I would suggest contacting your bank and getting pre-approved for a loan, they should be able to see if you can qualify for government loans. I you can't, then you might have to put your home buying goal on hold this year.

Your best bet is a lease purchse, better known as Rent to Own

The best place to get started is with a good loan officer. They can run your credit and look at your particulars and if you are not ready now, they can give you goals to work on to get ready. FHA is probably the best best, but there may be other options depending on where you want to live and your particular situation. I'd start with your credit union or if you need a referral please let me know or visit my website and look under the vendors tab.

Yancy,

Your best shot will be FHA. The underwriter will be primarily looking at the last 12 months of credit history. So it is not so much the credit score that is important, but what is on the credit report.

I just recieved an approval last week with a mid FIco score of 516. It was a file I submitted manually (which means that I didn't receive the initial automated underwriting approval through FHA total scorecard). Although most lenders require at least a 580 credit score, there are still a few left that have no Fico score requirements.

There are also more factors to consider than just your credit.

Feel fee to contact me either by phone or email. to discuss your matter in more detail. If I can not get you approved today, I will certainly tell you exactly what you need to do to postion yourself for a future approval.

Mr. Grimes, your credit rating determines in large part your ability to buy a home. Coupled with your debt-to-income ratio, your credit rating has a direct impact on whether you can get a loan and, just as importantly, its interest rate. To lenders, low credit rating and/or high debt-to-income ratio equals higher risk, and higher risk means a higher interest rate.

It may be that now is not the right time for you and your wife to buy a home. You may need to reduce your debt, increase your family income, begin to clean up your credit or a combination of all three. The good news is that as you do these things, your buying power will increase along with your ability to get a low-interest loan. I would encourage you to stand pat, stay where you are, get in touch with a good lender or credit counselor and set a goal to buy a home when your credit and debt problems have been resolved.

As for the market, we will continue to be in a buyers market for a good year or more. Values may begin to increase slightly, but a good Realtor® will be able to help you find the right home for you and your family when the time comes. And, again, you will be in a position to buy more home.

Mr. Grimes, I would be happy to discuss your specific situation with you. I can also put you in touch with a quality mortgage lender who will give you good counsel and answer your questions. Please feel free to call me or contact me via email anytime.

1. People who say: "Call me, I can help are pitiful solicitors". Don't go there!!!!
2. Yes, poor credit still has options.

Here is the deal.... with 3% down and a clean credit history over the last 12 months.... you have a great chance for an FHA loan which comes with a prime interest rate.

Good luck!!!

I am sorry to be the "wet blanket", but in my experience, you have few options with bad credit. FHA loans require a minimum score of 580. There is some room below that mark, but it is at the lender's discretion. Usually their discretion says no. I have found only 2 ways to combat bad credit that are mildly effective.

1. Good downpayment
If you have a good income and can put down some significant capital, the bank may be more willing to take a risk on you since you are putting your own cash up.

2. Strong Co-signor
If you can find someone with excellent credit to cosign the loan, this will increase your chances of qualifying, however it is not a slam dunk. If your credit score is too low, for instance, you are disqualified and the co-signor must be able to carry the entire note.

I have experienced both situations in recent transactions. It is saddening, but even co-signors and cash sometimes don't do the trick. Echoing Dave's sentiments, consider enrolling in a reputable credit repair program and think about buying a home when you are more prepared to do so. At this point, you face an extremely uphill battle to convince banks that you are not a risk with their money.

Make sure and ask a lender you trust for recommendations on credit repair programs. Some of them are great! Some of them are scams. Good luck!

Hi Yancey, Yes this is a good market and their is options depending on your loan and if you are looking for a home that is a deal and the price you are looking for. I will be glad to help are found someone in your area to help you.

It should be a buyers market for some time to come so I would not rush into something if your credit is bad. My suggestion is to sit with a local mortgage planner and have them run your credit. Then put a plan in action to raise your scores and work on any debts you may have with a target to purchase in the first or second quarter next year. Let me know if you have any further questions.
Rgds,
Dave Muti