Have you considered using the FHA? Well….FHA loans tend to have far easier qualifying guidelines than other lenders. There have been many changes recently in the mortgage industry and those changes have made it far more difficult to qualify for a conventional home loan than you could ever expect to see. It’s more of a challenge if you have bad credit…
On to the FHA – they increased their cap on mortgage loan limits, which allows people with marginal or bad credit to take advantage of the new (and more flexible) qualification requirements. Do you already have an FHA home loan? If so, you might be able to reduce your monthly loan payment using an FHA streamline refinance – an this does NOT require income verification 😉