You could begin by using this Hud site to make use of their free counseling and advice in buying a Hud home...http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
You should find a Hud approved homebuyers course in your area....http://www.hud.gov/buying/localbuying.cfm .........you will recieve information on getting things done, local programs available to you and make contacts in your area...
Read through Hud Homebuyers site......http://www.hud.gov/buying/index.cfm .......This will explain the process, provide loan info, calculators, tons of good stuff you need to know..........
Go ahead and play around looking at Hud properties for sale in your area to get an idea of what's available. It will also explain the bidding process in your area for Hud homes...http://www.hud.gov/homes/
Good house hunting, Dunes
The bad news is that FHA requires the past two years on your credit be clean. If the past two years are not clean then it is unlikely that you would qualify for an FHA loan or for any loan today. Although FHA is not credit score driven private mortgage insurance is and your credit score can affect your ability to obtain an FHA loan if PMI will not approve the loan. Also, FHA has tightened their requirements and many mortgage companies have placed their own minimum requirements on FHA loans. I would really recommend that you contact a loan officer to access your credit situation. They can inform you of what you need to do to qualify and when you will be able to qualify if you follow their steps. I recommend Wells Fargo and have provided you with a loan officer below. She is fabulous and closes loans in all 50 states. Again, if your bad credit is 25 months or older then you might have an opportunity with FHA.
Home Mortgage Consultant
Wells Fargo Home Mortgage
Remember I can do loans in all 50 states!
Lastly, I would ask if you feel you are truly ready to purchase and maintain a home. Based on your own words above it sounds like you have had problems paying your obligations in the past... more than just medical bills. And your husband has a few things on his credit also. It could be that these items are not recent but adding a foreclosure to your credit would be devastating. I would recommend you really look at your budget and KNOW that you can afford and maintain a home before your purchase a home. A homes cost is more than just the mortgage payment.... there is maintenance, repairs, utilities, property taxes, etc. And yes, you will have tax benefits that will help offset some of the cost but you need to look at the entire picture and make an educated decision for you and your family.
I would definitely like to help you and your family. An FHA loan will be your best bet for bringing as little money to close as possible. As far as your credit, there are minimum requirements for purchase, and I will be able to give you a more accurate answer with some more information. Please contact me when you get a free moment so we can discuss your options.
You ask good questions, and are thinking ahead of the curve. For that, I give you a lot of credit!
I have solid relationships with a few different loan officers, each with their unique specialty. FHA is a fantastic loan direction, and it will likely work very well for you.
Please email me offline, and I will be happy to connect you with the individual I feel can most positively manage your situation. I can be reached at Derek@DoorToDreams.com, and you can always visit our website at http://www.DoorToDreams.com
Look forward to hearing from you, Laura!
Derek Bauer, Associate Broker / Realtor
Real Estate One - West Bloomfield / Farmington Hills
Best contact a mortgage broker review your financial records, best for husband to resolve his credit issues which will increase his scores. Upon pay off it takes approx. 60 days report credit bureaus. After pay offs best then contact a lender NOT PRIOR it would be your benefit to "talk true shop" However if either you or he have credit cards never close an account it tanks your credit scores.
You would still need complete credit repair if the debt is over 2 years old, if less than 2 years better wait.
I have owned a credit repair company 10 years guest speaker for 1000's. Professional realtor, mortgage loan officer.