Best Answer: The two people below are correct, two options, either wait until the negative is remove, and your score goes up, or let your dad co-sign, and then wait a couple of years and improve your credit even more by paying on time, and making sure your debt ration is fine, by then you can save some money and then refinance under your name only. What you should do is ask a credit person, or the mortgage company or the bank, and see what they say.
See the although, you eventually want to be free of any ties, you are not yet in the status of being credit worthy enough to have excellent credit, thereby your rates are going to be low. If you were to go it alone, your rates would be astrinomical, and ridiculous, and you would be paying a lot out for years until you can get your credit score up, and refinance at a better rate. With one choice you save and you a a slight leash (co-signor), and you have a super low rate, and you can
re-finance later after your score gets better. On the other hand, you purchase the house now, at a crazy high rate, hopefully not variable, you pay on this house for " x" number of years, untill your credit scores go up substantially enough to refi, at a better rate, and remember you will have paid them hundreds of extra money, just because your credit is low, and you made the wrong choice.
If your dad is willing to cosign for you. and you are responsible, I would let him do it, and let him know your intentions. The whole deal is to be or get credit worthy, credit proof, you want to get any negatives off of your credit report, you want to pay on time or before time. You want to pay the minimum amount or more than the minimum. You want to keep your debt ratio down. You just don't want to get your score up 20 more points to get the next rate, you want your score to go up higher so you can get the best and the lowest rate possible.