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Your best option may be to contact a small local bank. They do not fall under Fannie/Freddie or HUD guidelines and usually are more flexible with credit.
Your Debt To Income (DTI) ratio is a very important part of the approval process. It represents the percentage of your income that goes toward paying your monthly liabilities (mortgages, installment loans, revolving loans). Lenders have their own guidelines about how high this number can be depending which type of loan you are doing (FHA, VA, Conventional). To answer your question, if you can support BOTH mortgage payments and still meet the lenders max DTI guidelines you can buy the house. If you don't fit in to that box, you can't.
If you are paid hourly and will receive a W2 than all you need is 30 days on your job. However, you will need to prove 2 years history of employment. If that work was in a different country than you may have trouble documenting the work history. Typically, a small local bank will be able to approve you for financing but it will most likely not be a fixed rate loan.
The only way to get a true market value for your home is to have an appraisal done by a licensed appraiser. A realtor or loan officer can point you in the right direction.
You should check out how your lease agreement reads. If the lease does not address how you get the occupants out, you should be able to give the tenants 30 days notice. However, you should consult with an attorney if it is unclear how to solve your problem.
Only a licensed appraiser can tell you what the value of your house is in the current market condition. Subtracting what you owe from the current value of your house will give you a number called "equity"
It sounds like you already know what to do. If you can't afford the house and it is full of bad memories than you should probably sell. Putting yourself in a bad financial position is not a good idea. You should contact a realtor in your area to find out what your options are.
One place you can get some answers or advice from is the CFPB. New servicing rules are now in effect that may give you some options or relief.
One loan program you could consider is a renovation loan. If the property needs repair (major repair or even appliance upgrades) you can finance the repair work. The appraisal is done taking the repairs or upgrades into account.