It is very difficult to get financing with a credit rating in the low 500s. Your ability to get loan approval depends on a few things:
1. Reason for low score. If you had good credit prior to becoming disabled, for instance, and then you had problems paying your bills, and now you are paying them on time, you may be eligible.
2. Down payment. The lower your credit score, the higher your down payment requirement, in general. FHA, for example, allows loans to applicants with scores as low as 500, if they have at least 10 percent down. The same rules apply -- you can have a low score if it is not due to financial mismanagement, and if you have been paying on time for at least a year.
3. If your $1,775 a month is tax-exempt, your lender is allowed to "gross up" or adjust your income upward for mortgage qualifying. That's because you actually have more to spend if you don't have to withhold taxes. Whether that's enough depends on the amount of your other bills, and how much you need to buy your house. While some programs allow you to spend up to 50 percent of your gross income on housing plus accounts like car payments and credit cards (regular living expenses don't count), with a low credit score, this number will probably be 43 or 41 percent at most. our Home Affordability calculator can help you see what's affordable to you. https://themortgagereports.com/mortgage-calculator