Keep working on your credit score. If you could get approved, your interest rate wouldn't be as attractive as it would be with a better score. When you get in the low 600's talk to a local lender about your options. Your income doesn't leave a lot of room, but SSI gets adjusted up, so depending on other bills you may qualify for something. The trick may be finding a home within your budget.
Realize too that your mortgage payment is only one cost of home ownership. When something breaks, leaks or needs attention, you have to pay for it. Maintenance costs and repairs can eat up the remainder of your budget quickly. Even if you buy a home in good shape now, over time things break and with your limited income it may be hard to save for a rainy day. Best of luck however you proceed.... more