I was reading the Realtor magazine this weekend and saw that Wells Fargo is now offering loans to buyers who are approved for an FHA loan and have a credit score of 500 or more. Wow, that should definitely open up some doors! The main stipulation is that the buyers have to put at least 10% down on the house if your score is between 500-579. If it is between 580-599 the buyer must put at least 5% down. The down payment for credit scores between 500-599 can not be gifted funds or from other down payment assistant programs. If your credit score is above 600 then you have to put the normal 3.5% down. The new policy took effect January 15, 2011.
Source: Realtor magazine March 2011