Hi everyone. I am brand new to the site, but wanted to get some insight and/or opinions from others who could be of help. I am 23 years old, with a credit score of 510. I messed my credit up simply because I opened a 2k credit card during college (2 years ago) and blew through it and missed many late payments in that first year and then pretty much stopped using it all together and am now paying off chunks of it every month ($ 200 or so.) I tried to ask for a credit limit increase but due to the high balance of $ 1300 and late payments (8 last year) they would not do it which I thought could help my score. The other issue is I have a $ 800 collection debt from 3 years ago due to a medical surgery I basically forgot to give to my parents (they pay for all of my bills/expenses.) I can have that paid off in the next two weeks which on creditkarma said would raise my score to about a 570 or higher. Lastly, I am finishing up my college degree and have been working as a babysitter off the books for income. I recently opened a babysitter agency that has been profiting since day 1 (open for 2 months so far.)
I am looking at manufactured homes in a great Florida community within the range of $ 40-70 K. The community requires a 650 credit score even if I have my parent co-sign, so I looked into FHA loans although I am certain I can get to a 650 by paying off the collection account and a large chunk of my credit card debt. I found that I can apply for a loan with a credit score even at 510, but I basically need to proof income for 2 years but how to do so if you are self employed and didn’t claim taxes for babysitting? I am obviously paying taxes for my business. Can anyone give me any information about what I can do to get a home loan in my situation? Thanks!