Call a mortgage professional that you feel comfortable talking to. The credit report they pull is different from the one you can get. It's more weighted toward mortgages.
Next time, hit AnnualCreditReport.com. It's free and you can pull one of the 3 credit agencies every 4 months, if you want, to check out what's going on in your credit world.
Midwest Properties of Michigan
It's important to understand that lenders will pull a tri-merged credit report on you. So, just because you are viewing a 650 score at FreeCreditScore.com you are not guaranteed to pull a 650 once you apply. However, based on what you have stated I believe you will be OKscore wise.
If you have no money available for a down payment your options are limited. I can still put you into an RD loan (Rural Development) though with a middle score of 620. This is once of the most popular programs available right now as it requires no down payment,. You will need to come up with your earnest money deposit though. This is the money you deposit when you write your offer to show that you are in good faith. Also, you will need around $400 to pay for your appraisal. Other than that you can request seller concession in your offer that should cover most if not all of the remaining closing costs. So, I would plan on having AT LEAST $900-1400.00 to contribute towards the transaction.
The rural development program covers only certain geographic locations though and you will need to utilize this search tool when searching for homes that are within the allowable geographic locations for the RD program.
Here is a link: http://eligibility.sc.egov.usda.gov/eligibility/welcomeActio
I am an expert in the Grand Rapids area and specialize in FHA and Rural Development purchase loans. I would love the opportunity to assist you with this transaction. Please don't waste your time and have a bunch of people pull credit on you. Come directly to one of the best licensed loan originators around! I'll take good care of you and make the process as seamless as possible. If I can be of assistance, please do not hesitate to call or email me at the contact information below.
Top Flite Financial, Inc.