Help On buying a home that we are so close, but yet so far from getting. Below (Requires Patience, & Time.)?

Ok. This is a very long Question, so anybody that takes time to read it, and answer it to the best of their knowledge, i just want to show my gratitude up front. I greatly appreciated it. & I want to also ask that i keep this question intended for the more experienced, Best answer people, Bankers, Realtors, Loan... show more Ok. This is a very long Question, so anybody that takes time to read it, and answer it to the best of their knowledge, i just want to show my gratitude up front. I greatly appreciated it. & I want to also ask that i keep this question intended for the more experienced, Best answer people, Bankers, Realtors, Loan People, Finance Advisers, & People with similar situations, or know people with similar situations. Etc....Thank you!
Okay here we go...
My Fiancé and I and one of her friends want to by a house, In Virginia. No first off, im kinda out the picture here. I have a couple of small collections to my name, as well as not enough credit. So this is all about my Fiancé, and here friend. My fiancé is 23, and her friend is about 52. They have become very close friends, both need places to stay here soon, and want to buy a house. Now They are working with a current realtor in there area, and he has ran both of their credits. First off the loan that they are applying for was called a FHA & USDA Loan which is from my understanding a loan that they dont have to pay back. A government loan. & They got approved! Now my fiancé, and ill go ahead and say her name...Meghan could get approved for 75,000 herself. Now of course we want a little bit better of a house. With Her friend Karla (the 52 year old lady which is like a mother to us) With her and Meghan together, They said that they can get approved for 128,000 max. Meghan’s credit stands at about a 665 right now, and im not sure about Karla’s. Its in the 500's. Meghan makes about 1,400 a month, and Karla makes about 900 a month. We have roomies that we trust that are going to rent the rooms out, so payments shouldn’t be a problem. Now heres where it gets tricky. Meghan has about 6,000 dollars in credit card debt. Karla....im not too sure. What the realtor said was that Karla needs to get her credit up a few notches to get them both qualified to get the $128,000. He said try going to a Bank of America and getting a $300 credit card and just use it, and make the payments, and it would hopefully be enough to boost her credit up enough. (That’s how close it is). But she didn’t get approved. Both stay in an apartment. Another one was that if she could get her son (which she co-signed for on a car a while back) to refinance, and get her name taken off, then, it would probably also be enough. But he son sadly disowns her now....Garbage!! But anyways...so they are kinda in a situation where they are so close, but yet so far away from getting one. & In the area that they are in, 128,000's pushing it enough as it is, for a suitable home (set to be in for long term.) Now Meghan on the other hand...oh yeah now the other option was, that they could get it in the FHA loan which i believe requires a 3% down payment. Which unfortunely we do not have at this time. So The USDA is what we are shooting for...Now Meghan is Maxed out on Getting anymore loans, although she always has had good history of paying her monthly credit card bills, or debt...however you want to call it. I’m not sure about Karla. Now with that being said Meghan if all possible wants to try to go for the house herself.. she is a First time home Buyer might i add, and we have been hearing something about an $8,000 Credit that The President has in a package or something like that. We are trying to figure out how all this works, and if there are any alternatives that we have, or that we can do. We would like and need to be in a home within 2-3 Months.. Is there anything else that we can do to bump up Karla’s Credit in time enough to get the home, or if not please state a time frame if something would work or be a little bit longer of a process..for both to get the home, or Is there something that Meghan can do or try to do to find another alternative to go? We also are actually wondering if we could maybe some kind of way take the 8,000 credit thing (if that’s even true), and maybe buy the house, and use the $8,000 which we would have the 3% and qualify for the FHA loan…remember the one we need 3% down that we don’t have. Again Meghan IS a first time home buyer. (We don’t have any co-signers by the way)......They have to do it together, or just Meghan for the $128,000...We are stumped!! I tried to give as much needed information as possible for the best accurate answer. All Opinions, answers, and explanations, & ideas, will be greatly appreciated!! & if you have any more questions that you may need to know, I WILL do my best to answer when i sign back on. Thank you very Much!!
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