Tired of wasting money on renting...can I get financing?

My husband and I have looked at getting houses at least once every year but it never works out. I usually get discouraged and give up.

Here's our situation:

Husband:
**Makes $31,678.40/year (minimum) and has worked there for 2.5 years.
**Has credit of about 560-580 last time we checked (last year).

Me:
**Have had this temp job for about 2 months making $15/hour.
**Have credit of about 560-580 last time we checked (last year).

We don't have much money for a down payment. We could probably save up about $5k. I know there are down payment assistant programs out there but I don't know if they will work with us or which to use. Also, I'm worried about closing costs. We won't have that much money to put in up front. Plus we don't want our house payment to be more than $1000/ month if possible. Am I being completely unreasonable or can it work somehow?
Additional Details
I live in the outskirts of Houston, TX.

This is what I would recommend - from the banks perspective.

You need to have 3 types of accounts open on your credit report...they can be credit cards, student loans, car payments, or house payments. This shows that you can pay your bills on a monthly basis. If you are like my brother and is scared of credit cards, then get a gas card with a really small limit. Fill up your car once a month with it, pay the $30 at the end of the month, and now you prove to be credit worthy. If you can't get a credit card, then go to visa and get a secured credit card...you put $200 of your own money in the account, buy something with the card, and then pay the bill at the end of the month. These things will help increase your score. (Debit cards don't count)

If you have collections, try to pay them off...I would start with the smallest and work your way up. Call the collection people and see if you can settle with them, but make sure that the credit shows you are paid off in full (sometimes they will show that you settled...which still hurts your scores). The collections don't always need to be paid off in order to get a mortgage, but obviously the more that is paid off, the better.

This is the part that stinks...I would say wait about a year or so to get your house...I know you don't want to, but during that year, pay off some collections, open some new accounts, and do the right thing in order to get your credit where it needs to be. Credit at this point is the most important thing - the mortgage industry just tightened guidelines this year because a lot of people where going into forclosure. The higher your scores the lower your rates (for the most part).

Most likely your temp job won't count because its not full time or part time, just temporary. Your husband should make enough to get you into a home (guessing $100 - $150k) if you are in California, you can't afford it...if you are in a cheaper state, then you could pull it off. When you go to eventually buy your home, right the offer with sellers concessions (that just means that they pay your closing cost - the realtor will go over all of that stuff for you). Also, once you get your scores in 620 and up range, then you can do 100% financing - so that means very little out of pocket for you.

Don't be frustrated - do what is necessary to buy your home. Make it a goal that by this time next year you are in position to do it, but you have to stick with what I said. Trust me in a year when you are signing the mounds of paperwork, you will be glad that you did...you will be proud of yourself because you know you worked hard to get there...and this next year will be worth all of the heart ache that you went thru...best of luck!

P.S - get the credit report pulled too...thats your starting point...then do everything else

Also, pay your bills on time...it does you no good to get a credit card if your payments are late! Good luck!!!

Go talk to lenders and see what they say. You may qualify for a first time homeowners loan. They will tell you what you need to do in order to get the financing. Just remember to leave room in your budget for maintaince on the home! You never know when something is going to go out on you! Best wishes!

anyone can get a mortgage, you wont get the best rate but you prbably can qualify for a FHA or since you guys are first time home buyers you can probably get deals there..you have some options your isnt the worst case believe me..

You can, and soon Foreclusure it is the solution. It studies the supplies, investigates:
http://www.foreclosureinfousa.net

Forget the realtor for financing, unless you want something not worth your while. Check with brokers, but beware here also- they were part of the cause of the real estate bubble we are in now.

Look for a Primerica agent. Ask the agent to complete a Financial Needs Analysis for you- it is complimentary. This will take a look at ALL of your finances. The can take an application for a H.O.M.E. loan, program for first time home buyers. It will get you pre-approved and it will let you know what to work on. ie, debts, credit score, savings.

This is a program for first time home buyers. The pre approval is good til you cancel, you buy a home or you end services with your agent. It covers a variety of loans available to first home buyers.

Whatever you do, make sure the person you deal with does complete a full analysis of your finances. This allows that person to make the best suggestions for you as of right now.

Your credit could be better, work hard to pay everything on time and get your debt down. Can you get a steady, permanent job? That will help.

Check your current scores at: http://www/annualcreditreport.com - no hard sales pitch to sign up for all kinds of crap you don't need like freecreditreport has.

First, find a lender that will work with you. Go with local banks and companies with names you recognize, like Countrywide. Get recommendations from friends or family on a lender and a Realtor. An enthusiastic Realtor will be a great motivator for you, try going with someone fairly new that is trying to establish their reputation and has time to work with you.

Most FTHB programs will allow the seller to contribute up to 3% to closing costs. This comes off the sellers bottom line, so you will have to closer to the asking price.

Give it a try, maybe this attempt will be the one where you get a home. Good luck to you.

First, check your credit score again. You can check it for free at http://www.freecreditreport.com

Your scores may have changed since last year and it's a good idea to see what they are now, versus what they were a year ago. A mortgage broker can tell you what your financing options are, too.

You didn't mention what part of the country you live in, and this makes it a little difficult to tell you if you can find a house based on your income. I would recommend finding a house where your mortgage payments are less than $750/month.

While talking about how much you need for a down payment and closing costs, this is only part of the money you need to buy a house. Because you will want to have money to do things like paint and make other improvements to your new house, maybe buy furniture (especially if the house is bigger than where you are living now).

I recommend having 10% of the purchase price in the bank to help cover all of the expenses tied to buying a new house. You might not need all 10%, but having too much is better than maxing out your credit cards and eating mac and cheese the first year you're living in your new house! :)

Good luck!

You can definitely make it work. If possible, while saving some money, also try to raise your credit score to 625. While you can definitely get financed with your current scores, you can get a much better interest rate with a 625 as this seems to be the cut-off.

First off, find a realtor who can get you pre-approved. That way you can get all the paperwork done and know exactly where you stand.

As for closing costs, you can work a deal when you make an offer that the seller pays closing costs. Sometimes you may have to work the amount of closing costs into the price of the house but on paper it will show the seller is paying them. A good realtor can work all this out.

Good luck and don't give up!

Go to CKLending.com and receive offers from top nocth companies that can help you with financing a house and best thing its free

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