First-Time homebuyers not approved for mortgage loanMy husband and I were not approved for the first-time homebuyer FHA loan that provides assistance for the down payment and closing costs because we make too much money combined. Also, my husband's credit score is a 603 and mine is a 643. My husband had a delinquency on his credit report that he cleared up (it was a misunderstanding), and he got a credit card to improve his score. I would qualify for a mortgage loan on my own, but my debt-to-income ratio is too high. Since we have to save money for a 3.5% down payment, we have started putting money away. We have $1,000 right now and I was planning to use my 401k, which is $1700. The house we are looking at is $159,900, so a down payment for that house would be $5,600. We are willing to look at other houses and/or save enough money for a down payment, but does anyone know of any other options for first-time homebuyers? We also looked into a lease purchase option on the home. They would want $1200 in rent (a portion would go to the purchase price) and $2000 down payment. Any advice would be greatly appreciated!February 25 2011 - Nashville00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.