Credit challenged home seekers do have several options available when trying to obtain financing on a new home.  The guidelines may be a bit more strict, and the rates might be slightly higher but many homeowners have been succesful with credit scores below 600....

Mortgage Insurance  is an insurance policy required on all FHA loans, and conventional loans if of the loan amount exceeds 80% of the value of the home.  This policy covers the lender in case of default or loss when the loan balance exceeds the property value.  Unfortu...