my fiance and I are first time homebuyers with horrible credit (me=555, he=559). We like a house and the asking price is $89,000. We have $20,000 for a down payment. We have a combined income of $60,000. Will a lender look over bad credit with a large down payment? This house is located in Niagara Falls, NY. Would a co-signer help us in securing a lower interest rate? Do you thik we would qualify for any first time homebuyer programs?

With credit scores that, 20% down should get you in the door. There are loans that dont look at credit score, so your capacity to pay will work to your benefit. The first-time homebuyer program I went through required a 600 score, but you won't need it since you have over 20% down. Unless you have some tax liens or something, you can defintiely get a loan.