Low income/low credit score..qualifying for mortgage

[Bernie01]

I have recently started to consider buying a home. I am a single parent with a low income of around $26,000. This comes from a full time job that I have been at for over 2 years.

My current credit scores per myFICO are Equifax: 601 Transunion: 558 Experian:553

I have a car loan payment of 342/month

and two student loan payments totaling $100/month

All are in good standing.

My revolving credit is non-existent

I understand these credit scores are low and that they will need to improve before I can attempt to get a loan. I have just started working on that so hopefully, with time, they will go up. My main concern at this point is that I do not have enough income to be approved for a loan. Does anyone have any advice or experience with qualifying for a loan with low income?

Thanks in advance for any advice!

[Anonymous]

You may want to look into the USDA Direct loan or the similar, yet different, USDA Guaranteed loan. Both are for low incomes, so I'm sure your income will qualify you, but you should check to make sure your area is within what they consider 'rural' by visiting this page. The USDA loans are among the most flexible & forgiving of all the options out there, but you'll still probably have to bring those scores up some. Best of luck to you!

[Bernie01]

Thank you! I'll look into that.

[Anonymous]

Go to a local bank and meet with a loan officer. They can break down what you could qualify for and if any grants/ down payment assistance is available. I'm a single mom with a low income and currently in grad school. I'm in the process of getting an fha loan with down payment assistance and a grant from the city. One thing I did to help raise my scores was getting a fingerhut account and making on time payments. Good luck

[Anonymous]

Since you say your a single parent I believe any child support payments get factored in as well. Not sure of your situation but you may want to look into that as well.
Hope it all works out well for you!