Best mortgage option for difficult to verify income?

I am trying to get a home loan but my income is primarily self-employment. I have a 700+ credit store and minimum down payment. We're looking at a USDA loan but the problem is that most of my income is from 1099s as opposed to W-2. I've had some W2 income in the last two years but lenders want to average my self-employment income. This is working against me because while I make $5,500/month, my average for 1099 income is around $1800/month. This is because in 2012 I took quite some time off for bereavement and we had money to float. We also did an out of state move that year to care for a family member. Basically, my 2013 income is only around $30k, and my 2012 even lower.

I am in Arizona and need to find a loan program that would work well for my situation or that could at least place more weight on my more recent income or at least do my average with consideration for the gaps in work history, which would then bring me into the correct DTI ratio. I don't have much down payment so I can't use a hard money lender. Where I live, there are lots of good homes that match my criteria within the $110k-$135k range.

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