My credit score is 550 and would like to get a house under 100k, any suggestions on a lender who will approve?

Tande, unfortunately it is impossible. I am a broker and work with many lenders. We could do this type of loan before the market crashed, but no longer. Lenders just not wanting any risk in mortgages right now. As you've probably heard on the news, too much money has been lost in risky mortgages. Some people wrongly think an FHA loan can be done with a lower score. Just not true today.

Get your credit report from all 3 bureaus and work on improving your score.

In the current market, you need a score in the 620 area. For mortgage approval, lenders go by the "middle" score. Meaning we pull credit from all 3 bureaus. Say your 3 scores are 550, 625, and 630. We would use the 625 score and you would then be in the range.

Be aware you might get someone who will lead you astray and have you believe it can be done. But you will be disappointed. Work on the credit first.

Not much time left for the tax credit. We are hoping it will be extended.

Good luck.

As others have said, you are going to have a hard time finding someone to give you a loan. Most FHA and conventional programs have minimum credit scores of around 620-640. However, based on what you have told us about your credit, I'm wondering if you really know what you would be getting into with a house? Many people only see the monthly payment without realizing everything else that goes into it.

Firstly, in order to keep a monthly payment of below $800 a month, you would have to find a home of less than, or right around $100k. Then, you also need a good faith deposit ($500 or $1,000 usually) to submit with your offer AND a down payment. The minimum down payment you could get away with would be 3%, so you are looking at another $3,000 on top of your good faith deposit. Then, you have closing costs. Depending upon your income and debt, some people are able to get their closing costs rolled back into their loan, but thats another ~$5,000 that will go on top of your loan and increase your monthly payment. You would want to pay for an inspection so you don't get a dud house (~$400).

So, hypothetically once you are in the house, you have additional costs. There is always something in a house that requires money, whether the a/c breaks, roof leaks, you need a plumber, etc.

Now, taking all this into account, even before considering a credit score, do you have a good full savings of cash to buy the home, as well as maintain it?

Things to think about....

5 years ago you could have gotten a mortgage, but NOT today. You need to raise your credit about a 100 points.

BUILD your credit rating, month by month, the same way you destroyed it. Pay everything IN FULL, on time. Pay down all credit cards, and Stop using them. SAVE money for a down payment. You need 3.5-5% for FHA and 10% for conventional, Minimums. 0% down loans are a horrible idea and no longer available.

You can become a home owner, but you have to EARN it, no one is going to give it to you. So you have to create a pattern of good financial decision making, something you obviously have not yet done. It is likely that some type of tax credit for home purchasers will be enacted at the end of the year, after health care is dealt with.

There are several companies out there that do grant loans to individuals with poor credit assuming you have a weekly paycheck. I would not advocate using this type of financial unless it is absolutely necessary. It can be very expensive especially the fees they charge.

http://www.worldbestloans.com/

However, there are also many, many loan sharks out there that will take your last dime with no remorse. You must be very careful in this area and check out every potential lender (better business bureau is a good source) and of course read the fine print very carefully.

Unfortunately I don't think that you can avoid having to go to different lenders. What I would try doing 1st is maybe finding a way to increase the credit score.There might be things you can do to bring it up a bit.

If you pay all in coins - sure. If you wish a loan... not really. FHA calls for minimal 620 credit score ranking for his or her loans. Can you come up with the money for a condominium at this factor? Do you've got your whole money owed paid off? Do you've got cash stored for last expenditures and a down cost? Do you've got an emergency fund developed up?

with credit score of 550, good luck