Your credit score is 550 and dropping, you live in northern California where the average home price is $600,000. The good news is your new career has a high income level and you earn between $7,800 to $8,200 per month.

You are single and your tax lady told you to purchase a home or plan on paying Uncle Sam 20% or more of your income each month. You have nothing against Uncle Sam, but you don't want to give up $1700 to $1900 a month.

Your credit score is low because of the divorce, there was no alimony or child support involved. So now you are wondering, who's going to give a truck driver, with poor credit a home loan?

There are Lenders called Sub-prime Lenders who make loans to people with sub-prime credit. You will need to pay your closing cost and perhaps you can locate a seller who will finance the down payment, or if you purchase in Oakland, California, the city will provide a $50,000 Down Payment Assistance. (The water front condos in Oakland are great) Yes, the interest rate is higher for sub-prime loans, however, after you pay your mortgage (on-time) for 12 months or more, you can qualify for a lower rate. Talk to your Mortgage Broker and be sure to get a loan (if possible) without a pre-payment penalty.

(Check with your city to find out if they offer a First Time Home Buyers Down Payment Assistance Program)

Keep driving your old truck and when you refinance your primary residences in 12 months, you might want to purchase a small investment property for rental purposes as well .......... do this every 18 months and before you know it you will have a solid seven figure net worth..... and just to think your wealth building started out with a credit score of 550!