Proof of Income - 2 yrs tax returns, pay stubs, W2's/1099's etc.
Proof of Assets - must be in your name
Credit History - Tri Merge credit report
Many excellent recommendations were offered below:
Continue renting until you qualify
Seller Financing - seller can get above market income from your interest payments
Hard Money Lender - very costly option
CASH - via the friends and family network
If you are serious about buying, get yourself preapproved from a lender so you know exactly what you have to do in order to qualify for a mortgage.
Bill J Deligiannis
First Centennial Mortgage
However, you can check out local hard money lenders (much higher rates and points, and usually 30 to 50% down)
CDPE - Certified Distressed Property Expert
Beachfront Realty, Inc.
NMLS # 6395
Financing Kentucky One Home at a Time
If you cant prove it, no loan. It makes sense, they are going to just hand someone a bunch of money because they "told" them they make money. And banks look at one year as not enough information. You are too high of risk. If you had 3 good years, sure it could be worth a risk, but banks feel anyone could have one good year. It makes sense if you think about it. Just rent one more year then buy.
The options have been laid out by Frank and Vidi. Because of your credit score and liquid asset, a seller-financed home can be your best option. There are of course pros and cons involved in this type of arrangement and or agreement: At the end of the lease, the value of the house is already predetermined and the interest is higher.
Also, if you change your mind upon the expiration of the lease with option to purchase agreement, you will lose your option money.
Make sure that you do love the house you will be considering. Picture yourself living there for many years.
Unfortunately, there is no way around this unless you were buying all cash. However, there are other options to a traditional lender. Ask your Realtor to look for homes that are doing seller financing. Seller financing means that the seller is willing to loan you the money. If you go with seller financing you will probably have to pay a higher interest rate, as there is more liability for the person lending the money. Another option would be gift money or a loan "friendly borrow". If you have a friend or relative that is able to loan you the money or give you the money you can buy the home outright in cash. Again, if you are trying to get a traditional loan you have to show tax returns.