If you are a current late payment creditors it will tank your credit scores. Keep paying your bills on time your scores daily increase.
GREAT time purchase a property you receive tax benefits annual bases.
NOTE: I owned a credit repair company for 10 years lectured to 1000's.
From the way your question is stated, it sounds like you may already know the answer to your own question. Poor credit in todays world will make it very difficult for a lender to lend you money. You really won't find your answer until you contact a mortgage professional. I have a list of pros in Alpharetta that would love to help. Let me know and I would be happy to send you their contact information.
I understand that you have poor credit but you are doing the right thing by paying off some of your debt. The good news is that you may still be able to qualify for a mortgage!!
You need to speak with Marc D'Angelo with SunTrust as he specializes in buyers with poor credit, first timers and down payment assistance (grant programs). You need to speak with someone qualified in this area otherwise you could be turned away. Marc is fantastic and if your credit score and income cannot put you into the right home right now...you have the advantage of him letting you know what you need to do to qualify later. It's like your own personal finance person!! Give him a call and you won't be sorry!!
Good Luck to you,
Prudential Georgia Realty
As Kevin answered, it depends on what your score is. Also they consider how much money you have saved for a downpayment. An FHA loan has a minimum of 3.5% for a downpayment begining in Jan. 2009. Currently it is 3%. The best way to find out what you can do is to contact a loan officer. This is a free service. If you can't qualify now, at least you will find out what you need to do. I would be happy to help you connect with a loan officer and I can also give you some tips on improving your credit score.