The only way you’re going to buy a home with basically no money down and a credit score that low is if the seller holds the mortgage. Would your relative hold the mortgage? Your relative would charge you interest just like a bank and you would pay your relative every month instead of the bank. Otherwise, you should probably see a real estate agent or an independent mortgage broker about your financial situation to see what programs are available. There may be low income or first time homebuyer programs in your state that have relaxed requirements for credit score or down payment.
What you need most to improve your credit score is to make on-time payments. Getting a new credit card will not help as much in the short run as making sure that you are paying your other loans as agreed—That means that you make each payment on time and that you are not behind. If you added a credit card to the mix and also paid it on time, that will eventually improve your score, especially if you don’t use your available credit. For example, if you have a $1000 credit limit, never charge more than $100 a month and always pay in full. However, getting a new credit card on top of your existing debt will drop your score at first, so it would not be a quick fix.
