Lenders will use your middle score for qualification purposes. That typically needs to be at least a 620 for FHA but some lenders require a 640. The good news is you are not that far off either say.
If you have never had any late payments the only reason for your score being that low is the balance on your credit card. Your score is partially calculated on the amount of your revolving debt that is in use. So you are probably using a very high percentage of your total revolving debt.
If possible I would pay that credit card down as much as you can. Once you have a two year history with your employer with documented overtime for that same period you can use that extra income to qualify. Lenders will most likely average your overtime over the past 2 years.
So the good news is you are very close. Taking the proper actions now will ensure you can buy a home in the months ahead. What you want to do going forward is keep paying your debt down and also try to save enough for your required down payment. Find a good loan officer who will work with you and help you get to where you need to be. If you do that once you have 2 years on your credit and work histories you should have a pretty good chance of being able to buy a home.
Best of luck to you!
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
Now with your credit you should be able to get approved. They may ask you for letters of explanation on certain items which is very normal. Regarding your income, they will count overtime but they typically take the average of the past 12 or 24 months. FHA does seem like your best bet unless you have served in the military. There are also other programs they can add on top of the type of loan you get as in MCC program, bond programs, etc. and these either allow you to qualify for a higher priced home, assist with down payment and so on.
I hope all this helps. If you need any more help, please feel free to call, email or text me. I help a lot of first time home buyers on the real estate side and am more then happy to help in anyway as well as represent you in finding the perfect home for you. Have a terrific day!
Your Personal Real Estate Broker
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Daniel De Mitri
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Have a good day,
Prudential Premier Properties
Good luck and if you need an agent to represent you on the purchase, please give my office a call.