New overlays from most lenders have raised the magic number to 640, though you may find a private money lender who will go lower. The issue, however, is that you are going to pay dearly for the effort. Expect larger downpayment (at least 10%), higher interest rates and discount points (up to 3%). Unless you can find an owner carry situation, I would suggest waiting and working on your credit scores. Contact a local credit counseling service (non-profit, not paid for service) and get their guidance on exactly what you can do to impact your scores successfully. Be very careful of the lease purchase option! Most are not written or executed properly to be converted to traditional financing in the foreseeable future. If you do decide to go forward with a lease purchase, be sure to have an attorney review the contract and talk with a loan officer about your "exit plan" prior to entering into the agreement.