Thanks for your post Sherrie.
I am a loan officer and I can help.
Here is the solution:
Like we clean our home we also need to clean our financial home. So the first thing you need to do is get a tri-merge credit report to find out just where she stands. You need the tri-merge since all credit bureaus are not alike.
Then you need to review the report for accuracy.
Third, dispute incorrect items. I do not care what folks tell you, NO ONE CAN LEGALLY REMOVE ACCURATE NEGATIVE ITEMS. While many will get them off for a month or so, they always pop back on.
All judgments need paid or have payment arraignments. Collections may need paid. Most times medical are ignored. If the last activity was more than two years ago LEAVE IT ALONE.
Your daughter will (most likely) have to document income for at least two years.
FHA (and other programs) are available for folks that demonstrate the ability and willingness to pay bills. I can go on and on but I don't have enough information. Drop me a email or give me a call at 317-714-8080. I serve the entire state of Indiana (along with the other 49) and I can give you more advise.