If you're interested in talking this option over with a lender, let me know - I can put you in contact with some great lenders. I also have a nice Buyer's Package in PDF format that can help explain the buying process to you in a little more detail. Request it from the link below and best of luck!
Your situation is very similar to mine. Although my Chapter 7 was a little over 3 years ago, both my boyfriend and I have poor credit ratings. However, we both have good paying jobs, currently pay $1250 per month in rent and pay our monthly bills on time.
We are going through an organization called NACA to obtain a home mortgage. Though they are new to Nashville, they are an established and legitimate national organization dedicated to stopping predatory lending practices and offering people affordable mortgages. There are a couple of threads discussing Nashville's local NACA office on this website that will provide you with more information. But, basically, they offer fixed low interest rates, no down payment and no closing costs. They utilize a comprehensive character-based lending system instead of looking only at your credit scores.
This is not a quick process - it is rigorous. We have been meeting regularly with our NACA mortgage counselor since September 29th and our official anticipated qualification date is January 25, 2009. Obviously, each situation is unique, but it typically takes between 3 - 6 months to become qualified for a NACA mortgage.
If you want to know more, you should visit http://www.naca.org. Or, our mortgage counselor, Monica Wilson, has started a blog focusing on Nashville NACA at http://www.nacanashville.blogspot.com/
Good Luck to you!
The question on being approved for financing is not so much the lower credit scores, but what has created the lower credit scores, and have those issues been resolved. FHA guidelines allow for approval 2 years from the discharge date of bankruptcy. It is not uncommon to see lower credit scores outside of bankruptcy because some attorneys do a better job than others of making sure the items that were included in the bankruptcy no longer show as unpaid on the credit report after they have been discharged. Many times the issues seem worse than they actually are, so I'd love to take a look and see what the issues are and help you make a specific plan to get into your new home.
Would love to talk to you and look at your credit report. Credit report and consultation are free. You can get in touch with me at my website http://www.donnasgotmoney.com or call me in the office at 615-309-7945
Thank you and thanks to CeCe Wyant with Prudential Woodmont Realty for bringing this to my attention. It may be easier to move forward than you think.
Brian Thomas Smith - Realtor
I have a lender here in Nashville - Charlie Thompson - with Realty Mortgage (see link on my website below). Feel free to contact him for help. If you want to pursue the possibility of a lease/purchase, I can send you some listings that would fit yor budget.
You also need to connect with a great lender that can check out your ability to purchase using FHA financing. Your credit score is not as important with FHA loans as it is with conventional financing.