Is it impossible to find a mortgage with severely bad credit?

My husband and I are looking to purchase our first home, however we both have very poor credit scores (and yes I know this is bad news) but we have found a home of which we would like to purchase. The home loan would be for about 0,000, I am currently a nurse and my husband is on disability and has been for the past 10 years! We are confident that we can afford a mortgage, but really don’t want to go through the whole credit repair bit because well quite frankly it would take forever and a day to do!!! I have searched high and low for a lender that does bad credit mortgages with no good results! Does anyone know a legitimate lender who would deal with us??? Before answering, yes I realize it is not wise to have bad credit and need to borrow, but we are at odds here so please no rude answers…

Thanks in advance
To "my take on it"–I didn’t ask for your opinion on if we could handle a mortgage payment or not! My question was rather simple in asking for bad credit lenders! Thanks for your answer, however I wish you would have actually read the question before answering!

Thanks everyone for your answers (the ones who answered the question that it:-)

Can I get a mortgage with bad credit with the following circumstances.?

Here are my circumstances:

Transunion: 567, Esperian: 537, Equifax: 582

Annual income before taxes: 39,000, I have worked for a year

I own a home: 9 a month taxes included
I have had 8- 30 day late payments in 2 years

I have no other debt monthly, making my debt to income ratio 85/15 (I’m pretty sure)

I paid off my car, no late payments last two years.

I paid off my Providian credit card no late payments past 2 years

I have college loans in deferment until 2008, I’m currently working on my MBA

Now the bad news:

I have had 3 derogatory accounts, that I have just currently paid off, 2 were credit cards, one was a medical bill that never made it to collections I don’t think, so they haven’t been factored into my credit score yet as being settled.

I dont have any credit cards and all I pay a month is 9 on my house that I have owned for about 3-4 years.

Question About Bad Credit Mortgage?

I have several questions about buying a home with bad credit. Before I do, let me give you some information about me to help you better answer the questions.

I’m hoping to marry my current girlfriend sometime in the future – maybe in a year or so, God willing. We would probably rent an apartment for a year or two after getting married, then would like to buy a home.

The good news is that her credit is excellent. My income is about ,000 a year, and her’s is about ,000 per year, so our combined income would be about ,000, assuming nothing changes between now and then (but hopefully it will change for the better .

The bad news is that my credit is bad – I had a bankruptsy a few years ago, and my credit score is just over 600, which is pretty dismal. I understand that there are ways to improve your credit score (any tips would be appreciated), but I’m just trying to get an idea of what kind of interest rate we might receive on a mortgage based on our current financial picture. I don’t understand how the bank would determine our interest rate considering her good credit and my bad credit. Based on my credit score, I would think the bank would give me a rate of about 8.5% or higher, if I could even qualify for a loan at all, but based on her good credit, my guess the interest rate would be about 5.5%. My guess is that we could probably afford a home in the 0,000 to 0,000 price range.

I’m very new to all of this, so I understand that my estimates may be off, but any feedback or advice you can give would be appreciated. This would be a few years away, but I’d like to do as much as I can in the next couple of years to improve my credit, and to plan for this so we can make the best possible decision when that times comes to buy a house.

Thanks to all that respond!