Answer: -Your best bet is to contact a mortgage BROKER in your area (not a bank, or lender, but an actual broker). They have special programs for bad credit borrowers. Depending on the area you are in, some will lend up to 100% even with credit scores below 580. If you can't get anywhere with a mortgage broker, your next best bet is probably to look for a "rent-to-own", "lease option", or "land contract" deal, where you are paying "rent" but part of it is going towards your down payment, and in 1 or 2 years you can get financed. Just make sure you keep all your cancelled checks (every one of them!!) and you should have no problems getting a mortgage in a year or two. -During the process of looking for a home with an agent...your credit can be 'cleaned up' some...they are very helpful with this. If you or/and your spouse have good jobs that youve been in for a good number of years, steady income...real estate agents can usually find you a good broker that will suit your needs.Buying a house shows mortgage companies that you are serious about becoming a steady and reliable citizen. -It is not difficult to bring your credit score up to a 580 or higher, at which point most subprime lenders will do 100% financing. Make sure your rent is on time every month. Pay your credit cards every month, and get and keep the balances under 50% of your credit limit. Then go talk to a few brokers about what you can afford.You might try this article for more information on what goes into a credit score, but 580 is 140 points below median, which should give you an idea it's not a difficult score to achieve. The better your score and the more your down payment, of course, the better your rate.