Q. I live in Las Vegas. My FICO score is only 600 and I'm self-employed, so I have a hard time proving my income. Does that mean I can't get an FHA loan?

A.No, but those problems will certainly make it more difficult for you to get any kind of mortgage.

That credit score makes you a high-risk subprime borrower. With about one in four subprime mortgages in default or foreclosure it's extremely difficult for anyone with bad credit to obtain a home loan right now. That's especially true in Las Vegas, which has one of the worst default and foreclosure rates in the country.

Before you can buy a home, you'll probably have to improve your credit score. That takes a little time, but if you follow our 6 smart moves to improve your credit score your score will begin going up within a few months.

When your credit score reaches 700 or so, your best option might be a no-doc or stated income loan. Although those loans charge higher interest rates than fully-documented mortgages, they're designed for borrowers who can't fully prove how much they make.

If you apply for an FHA loan, you'll only be able to count the income you can fully document with W9s or tax returns. Your mortgage payments along with your other regular bills -- auto loan, credit cards, etc., but not things like food, clothing and entertainment -- can't be more than 40% of your gross income.

If a significant portion of your income is undocumented, that will dramatically reduce the amount of money you would be eligible to borrow and spend for a home. (Click here to learn more about how to qualify for an FHA loan.)

Although the FHA doesn't consider credit scores when it reviews loan applications, it uses your credit reports to determine whether you've paid your bills on time for the past two years or are carrying big balances on your credit cards.

Late payments and lots of credit card debt are two of the biggest reasons for low credit scores. So everything you do to boost your credit score will also improve your chances of qualifying for an FHA loan, if that's the option you choose to pursue.