Here is a great article for you on how to improve your credit history. Good luck and let me know if you have any more questions
Neither your score, nor your income alone are show stoppers. What's going to matter is a combination of things, including what kind of purchase price, size of home, and location, etc., are going to meet your needs. If you have champagne tastes on the shoe string budget, well, then that's a problem. Careful, you want an answer that makes sense for your situation, not simply an answer that figures out how to squeeze every drop of money out of you in the hopes of getting you to buy a home. Talk with your coworkers, friends, family, and find a good lender who can take your information and give you an honest assessment of your situation.