With a very low credit score, your only lending choice will be with a private money lender, also known as hard money lenders. They call it hard money is because the repayment terms are difficult, and so are the qualifying terms.
You will be charged interest rates of 12-16%, and you will probably be asked to put down anywhere from 25-40% of the purchase price of the loan.
You may want to wait until you improve your credit rating, so that you can get a conventional or FHA loan at standard interest rates.
There are some mortgage brokers who are now adertising FHA loans (3.5% downpayment) for credit scores between 580 and 600, so you may want to contact one of them. These same mortgage brokers may be able to connect you to hard money lenders.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions