I have a bad credit and I need to buy a house, and I do not have down payment.

Why do you NEED to buyt a house. With no money down and poor credit your chances are pretty much nil

You'll more than likely keep renting houses or apartments until you can get good credit established. You don't "need" to buy a house - you want to buy a house. Two different things.

With the economy like it is right now, chances are there's no way you'll be able to buy a house. Part of the real estate problem right now is that people with bad credit and no down payment were approved for mortgages way above what they could afford to really pay.

Last year, Aug 2007, in spite of not great credit, I managed to get a credit card. I began making small purchases and then paying it off or making payments on a regular basis. Made sure I was never late on payments and didn't go over the minimum. In a couple of months the credit limit was raised. All these were good for improving my credit. I did all this because I was thinking that I might want to buy a house someday.

In Jan 2008 I decided I wanted to buy a house (am 51 and never owned a home). However my credit still wasn't the best. However, I started the process and made sure that when I was hunting for property that I DID NOT go over my budget. So even tho' I'd been pre-approved for a $65,000 mortgage, I determined that I wanted to keep it as close to or lower than $50,000 as possible.

That would ensure that my monthly payments wouldn't be much more than my rent, if not even less. Which meant it would be affordable.

What that meant was that I was not going to let myself want more than I could afford.

I ended up with a single-wide manufactured home on an acre of land in the country for $50,000.

Here's the kicker and why you may have a tough time buying a home right no with your credit like it is and now downpayment. I offered on the house & the offer was accepted on April 1, 2008. We closed the sale on... October 3, 2008... 6 months!

I had the money for the downpayment, the buyer had agreed to pay most of the closing costs. However a tiny blip in making a credit card payment on time (missed by two days) caused a problem.

Then there was the problem that lender after lender on used single-wide manufactured homes has absolutely stopped lending on USWMs. Finally, finally for about the 3rd time the paperwork was in process the approval had been made to lend the money and the lender announced they were getting out of the mortgage business. Fortunately, they would honor those loans already in process.

Another bit of wisdom: When I was looking for places, most properties in my price range were fairly... required work. However, five months later prices of houses being sold has dropped considerably. By waiting I might have been able to get more house and property for less money than I ended up paying. However, that's all hindsight. I figure I'm where I'm meant to be.

Work on improving your credit. Buy something small on credit (if even possible in this financial climate) and then pay it off. This will help establish your creditworthiness. Begin setting aside something every week towards a downpayment. Make sure it's in a separate checking or savings account, one that you will only use for a downpayment.

Wish you all the best.

Work on your credit. Then look at first time buyer programs, at gov.net. Might be able to help with credit issues, and fianacing?
Suzanne Whealan
Suzanne Whealan

Take a look around at the advertisements in your area for ads offering a home with no money down, bad credit, or owner financing. I was in the same boat as you are and found someone who would do owner financing with very little down. Be careful to make sure the monthly payments are going to fit into your budget by doing it this way. Sometimes you get caught up in the moment and bite off more than you can chew. However, there are individuals out there who offer fair, honest options for you.