MY wife and I have both been divorced and have a poor credit rating. We both work and are full time. Is there a legitimate government agency or bank that is willing to help? We bring home monthly $2,870.00. We do not have a car payment,we do rent for $825.00 monthly. All we have to pay is rent and utility bills and of course with children there are misc items also. Are there any packages that do not require a down payment or could help with one ?

Hello Isu:

The best loan program out there is FHA. If they won't approve you, then you need to bump up your credit score.

excon

The best thing to do in this mortgage climate is to get your credit rating up. If you have collection accounts, make payment arrangements and keep them. Some may settle for less than the full balance and allow you to make monthly payments. In that case, get the agreement in writing from the creditor and keep a copy. Make your payments by personal check and keep copies of all the checks. After 12 months on time, this history will be considered in your application for a mortgage. I would not recommend jumping into any mortgage on a subprime basis. Many of us have been through divorce and had credit problems as a result, myself included. But you have to work your way out of it slowly and carefully or you will just get into a worse situation. It can be done! Good luck to you.