I can help you find a home in New Braunfels too! I know the area, and the inventory, and I can get you together with a great lender who will be able to get you into the right loan. You are still able to purchase a home with both you, and your wife's current credit scores. Here are the FHA guidelines per FHA 2013 for credit scores and down payment requirements;
"FHA minimum credit score is 530. New FHA policy requires a minimum credit of 530 to buy a home or refinance. In the old days FHA did not require any credit score. These changes went in to effect in 2010.To buy a home you will need a minimum credit score of 530.
Borrowers with credit score above 580 require a 3.5% down payment. The funds can be a gift from a family member and a 6% seller's concession is allowed. Often, 12 months of rental history is required for credit score below 620.
For first-time buyers, determining a maximum affordable monthly payment is key. F.H.A. mortgage insurance premiums are added into the principal, along with interest and escrowed taxes and insurance amounts. HUD estimated that the annual premium increase will add, on average, $5 a month to consumersâ€™ mortgage costs. Some low-income buyers, however, may be eligible for grants or other assistance to cover some of their closing costs".
I hope this information helps! Again, please feel free to call me if you have any questions and I would be more than happy to help you!