Successfully applying for a home loan when you have poor credit and low income can be challenging. In general, mortgage lenders want to see applicants who are fiscally responsible, have a solid income and a reputation for paying their bills on time. In the absence of these general requirements, you'll need to take a different approach to seeking out home financing.

Step 1

Determine what you qualify for. Before you start looking at houses or applying for mortgages, request a copy of your credit report, correct any mistakes on the report and meet with a mortgage lender to determine your eligibility based on your credit score and your current income. This gives you an idea of the numbers you're working with, both in terms of how much house you can qualify for, and what your interest rate will be.

Step 2

Save money for a large down payment. The more money you can put toward a down payment, the more likely a lender will be to consider your loan application, even with your low credit score and poor income on the table.

Step 3

Compile pertinent paperwork. When you apply for a mortgage, you’ll fill out a loan application and the lender will ask to see proof of your income in the form of previous income tax returns and your past several months of bank statements. A lender will also want to know how much money you owe in terms of other debts like credit cards, car loans and student loans. Gather this paperwork as part of the loan application process.

Step 4

Comparison shop with different mortgage lenders. Start with the bank or financial institution you have an existing personal relationship with. You might have to approach several different lenders before finding one willing to make you a loan based on your financial circumstances and your credit history.