Rather than circumvent this, I suggest that you fix the problem - your credit score. Hopefully, there's a few things you can do to pull up the score quickly, which will allow you to buy using a conventional loan.
Your best bet is to rent a home and set aside $200 per month for a down payment. When you are ready, you can buy. If you rent to own the home, they will require you to pay the rent plus an additional set amount ($200 or what you agree on).
1. Make sure you go through a title company or other third party so the money is going in the correct place. You don't want to give all of your money to the owner to find out that they did not pay their mortgage payment and they keep the $200. If this happens, you lose the money and the bank gets the home.... more
I agree with Robin. The other point is that if you takeon some sort of financing, you will have to bear that burden in your debt ratio if you need to buy anything, even a car. Unless you make a lot of money, which your credit score suggests you don't, this could restrict your ability to even rent a place to live! No one will care that you don't pay that loan, and in fact if your parents can't pay, you are on the hook for it. If the reason has nothing to do being behind in mortgage payments or upside down on the value of the home, I suggest you contact an attorney to help you all figure out how to protect those assets, a living trust for example.... more