The short answer is, yes, it’s possible. But it’s not as easy or cheap as it used to be. Lenders reserve the best interest rates for borrowers with at least a 720 FICO score. But if you have a score in the 600s (even the low 600s), it is still possible to get a mortgage, but at a higher interest rate. In that case, you must also have an otherwise solid portfolio — decent savings, a firm job, and rising credit history.
It also helps to be buying in a neighborhood where prices have been stable. Lenders are not eager to write loans for homes in declining value areas. Having at least 20% down payment will help your situation. if you don’t have 20%, talk to the lender about special programs for new home buyers. Call if you need a lender referral: (718) 399-3320