That's going to be REAL tough. Although there are a handful of lenders out there that will do FHA with as low as a 580 credit. The 580 credit alone will generally not result in an approval unless there are supporting factors in your favor - 3 credit scores, higher than a 3.5% down payment, low debt-to-income ratios, etc.
Based on your question it doesn't seem like that is the case and my intuition tells me you're going to find it difficult to impossible to get approved for a loan now. So what I would advise is to find some place to rent while you work on building/repairing your credit and saving up a little money for a down payment and closing costs. As far as 0% down programs, USDA might be an option if you can get those scores up to about 620-640.
Everyone has a right to a roof over their head, but OWNING a home is a privilege not a right and the goal should not just be to become a homeowner but to remain a homeowner for a long time. If you try to shortcut the process before you are truly ready then you may be asking for trouble down the road.
Always start with a lender to get pre approved and find out what price range you should be looking at..
Feel free to give me a call if you need additional help.
Bill Moody RE/MAX Results
I would start by getting a pre-approval from a mortgage loan officer and then contacting a local realtor. You can start your searching the local MLS at www.Rocks1.com. If you've got any questions feel free to contact us. John 502-442-1995 or Jill 812-987-8848... more
Joyce - I just saw your question and - if you haven't already gotten advice elsewhere - the answer is you'd have to find the right builder. There are several factors that will influence a builders decision to do this - condition/location in NA of your current home, cost to build home you want to buy, etc. - but the bottom line is it would have to make sense for them to do it financially. They would have to be able to make money as obviously thats how they stay in business, pay their bills, feed their family, etc. What I could help you with is a free market analysis of your current home to give you an idea of what it would sell for in this market. That way you would have an idea of the value of your home if/when you made any proposal to a builder. I could also help/represent you in working with any builder as I know a few I could discuss this with as far as doing a trade. Just let me know if you'd like some help. No obligation on your part for us to meet and talk about your situation, my initial advice is always free and will help you decide if you'd want to work with me. Thank you.... more