Q. I lost my job about two years ago and have been on a long term temp assignment which I was hoping would become permanent. Money was very tight, which forced me to move in with a relative. Now I'm about to start a new permanent job and I want to buy a house. I have very little savings but I am still paying on and am current with my car note. And about six months ago I got a credit card with a very low $300 limit. I don't use this card often, and when I do I charge no more than $150 at a time and I pay it off on time. What do you think would be the likelihood of me getting a mortgage and down payment assistance with about a $50,000 income and a credit score of 580?

A. With a low credit score and a new job you'll have a difficult time finding a subprime mortgage that offers 100% financing. So many loans like that have gone bad in the past year that very few lenders are making them.

Your best bet is trying to qualify for an FHA loan that requires a 3% down payment. Getting that from a down payment assistance program or DAP is a great idea. DAPs are often used to fulfill the FHA's down payment requirement.

If you can't qualify for a mortgage right away, don't be discouraged. You are doing all the right things to improve your credit. It may take a few more months, but once your credit scores nudge above 620 your chances of getting a mortgage will improve.