I was looking around online and read that you can have a credit score as low as 580 and still be able to qualify for an FHA home loan. My guess that there are some stiff rules that go with this, but is the program worth looking into? We foreclosed about 6 years ago and are interested in buying again and not having our money sucked away in rental costs.
I ended up pulling some information online the other night and it all seems interesting, and you don't have to have such a big down payment. I also got some phone numbers of housing counselors and people I can call so I am going to check it out.
I called the FHA resource center today and got a lot of good information on home loans. They work with lenders to give low interest rates as long as you have mortgage insurance. Some people would see this as a deal breaker, but the FHA people will help you out in the event that you become unemployed. I find this to be a little comforting because of all the bad things that happened to people, including my own family, during the 2008 recession. There are even grant programs available to help out with a down payment.