Want to buy October 2015

[blu_i_hen]

We would love to buy our first home together in October 2015-16. I'm currently on the rebuilding credit board to get our debt on track to be paid off. currently total debt good and bad is. $20,707.    Our credit scores are 528(me) and 548 (husband). Gross income is $62,000yr with a fifty cent raise every june, husband works 60 hour weeks i am a SAHM) I know that we have a ways to go before we are able to apply for anything with those scores, but better to start now than later.  The only debt we have going good toward our credit reports is our car and we owe about $8000 more on it,( only in husbands name) the rest of it is Collections on our credit report.

My questions: What is a minimum credit score that would give a mortgage? I've read some places will do as low as 580 and other that only do with 620+.

What kind of down payment should we make sure we have down for a mortgage?

What should we expect to be able to get qualified for once we have our scores up? 

net monthly is $3200 to $3400  our total bills at this point are $2000.   

Thanks so much in advance for help with this

[ShanetheMortgageMan]

I'd strongly recommend your husband & you each open 3 credit cards to start rebuilding your credit & scores.  While you can improve your scores with just the car loan you have, it'll be an extremely slow process (2-3 points a month most likely)... but if you get 3 credit cards you'll see a nice little increase each month (5-10 points per month most likely).  I'd look into PFD's for the collections, and if any of them are medical then the HIPAA program for those ones.

Most lenders are looking for a 620 score these days, some will go to 600 and some will even require 640, and some will even go down to a 500... but 620 is a good target to get your scores to at the very least.  That way you'll have the majority of lenders out there as options, rather than just a small percentage.

USDA financing (rural areas) do not require any down payment, FHA requires 3.5% down, conventional requires 5% down, and if you or your husband happen to be veterans then VA financing doesn't require any down payment either.

There is a thread at Information that is needed to determine if you qualify for a mortgage that explains what additional information is needed.