You can also consider a lease option situation.. We offer a program that qualifies you for a mortgage, has an in-house credit repair consultants and works with you towards the purchase of the home. This program offers no money down, no up front option fees and not even an application fee.
Check us out at http://www.LeaseOptionHomesAZ.com
I work with a Lender that will give you an interest rate that is lower than market rate when you meet there criteria.
Please contact me if you want more information.
Have a GREAT evening!
Vivien L Biggs PLC
Prudential Arizona Properties
Check MLS for homes on my website
There are many Loan Officers that can work with you to get your scores higher. Keep in mind that different mortgage companies work with different numbers. Some may only go down to 640, 620, 600. I had seen one at 580, but would have to see if they still offer this. So, it is in your best interest to check around.
You mention that you are playing catch up with your credit. I am not sure if you mean you are behind in payments. Most lenders will require no late for a period of time as well.
One way to raise your scores is not to have your credit cards maxed out. Only having used 50% of what you could use on a credit card can also raise you scores. A lender will also go over your debt to income ratios. So if you can't do it now, they can assist you to get into a position to do so soon!
Ron & Brenda Cunningham
West USA Realty
*** Recognized in the Phoenix Business Journal as "One Of The Top 50 Realtors In The Valley"
Your ability to obtain financing is a four-legged stool
3. Down Payment
Sometimes you can get a stool to stand on three legs, but never two. As mentioned earlier, speak with a mortgage specialist. I recommend you talk to a mortgage broker AND a mortgage banker. They both have their limitations and advantages.
Doing your due diligence is very important when picking a lender (or a Realtor). Don't just pick the loudest voice with the slickest sales pitch. Ask about the "cost of the loan" and don't get sucked into the "best rate".
Since we don't know the cause of the low score it is hard to guess what action you may need to additionally take.
I can give you resources to clean up your own credit score, point you to a lender, or refer you to someone that can help you for a modest fee.
It is very difficult to get financing today with a low credit score. I would advise you to meet with a mortgage broker that can guide you and help you get your credit score up so you will be in a position to buy a home. It doesn't matter if the home is a foreclosure or a regular sale, you still have to qualify.
Keller Williams Integrity First