I need help??

So my husband and I got married in September. It was amazing, we had so much fun and it was wonderful.

In August we moved back into his parents house under the premise, that they would be moving out in November. They wanted to move out, our credit wasn’t good enough. So his parents came up with the idea that we would rent the house while they moved into an apartment. (I’m not sure why you’d wanna do that but they are dead set on a two bedroom??) anyway so they wanted us to pay them rent starting December and they would move out November. We would do this till we paid off our debt and could get a loan to buy over the house.

Well two days before our wedding my MIL came to me and said “we talked and you guys can rent the room from us for 500$ but we don’t trust that you guys will be able to afford the mortgage every month. If you want us to move out you’ll have to bring us the paperwork stating you have a new loan.”

So first of all, my husband and I have separately never been late, missed a payment, or even came close to not being able to afford our rent. Together we still never had that issue. All of our bills are caught up, we just haven’t paid attention to our credit as much as we should have. It’s literally 12,000$ in medical bills which we already have a plan to pay. A plan that will give us the ability to purchase the home by September at the latest November. (Since we would have to wait for our credit to update every 90 days or so)

So blindsided by this we had no where else to go and just decided okay we will pay rent and after the new year we will just pay off as much debt as we can and purchase the home.

His parents told us we had till 2020 to come up with the loan which was more time than we needed. Christmas eve his mom comes and tells us that we have Till the end of January to decide if we will actually buy the house and if not then they will kick us out by the end of April. Which would screw us over because we need a bit more time in order to get a loan to buy a house and we don’t want to keep renting because it’s a huge waste of money. They demanded we bring them proof we are taking this seriously and bring them our plan that we are going to use.

So I spent all day and I mean ALL day calling lenders and going through our credit and making a literal budget for every month till October. I tell my FIL when he gets home of our plan and he tells me “oh well I’ll have to talk to ma. I don’t know if she can wait that long.” Then he started bringing up how they wanted to be out by May/end of April and how if we can’t afford this then basically we are SOL.

Like? I’m sorry? You’re gonna rush us out and screw us over because you can’t be patient 5 more months? Especially when you put us in this position since we decided not to re-sign our lease as they were going to be moving out.

I’m so frustrated. And if they kick us out in April we won’t have high enough credit or enough debt paid off or enough saved to buy a different house. Especially since they didn’t want to sell us the house they wanted us to assume their loan.

I feel like they did this to get us to pay them 500$ a month for rent because they can’t afford their bills, and then they found this business that buys homes for fixer uppers (they owe like 105k or so left on their loan and the house is worth about 110k at most) so they realized they didn’t have to wait. And now they want us out so they can just be done, but they don’t want us to leave because they need us to help them pay their mortgage. (Idk if that made sense)

So what do I do? Should I let it play out? Should we be looking for something else? What do we do if we can’t buy the house?

Update : I guess I should have been more specific, we are going through an FHA because we have 12,000 total in debt sitting on our credits (it’s all medical bills except two literally.) I currently have a credit of 510 and we have nothing in savings as we just paid our wedding out by our selves. The main reason we wanted to wait till at least September was to save up money for the down payment and pay as much as we can down on our debt. Now it won’t take much to raise it the extra 70 or so points, however we need mainly time to save up.

The area we live in does not have a strong market, most people are comfortable with where they are living and without going over our max budget right now of 150k there are only 3-5 homes in a 20 mile radius of where we live that are for sale. We don’t know if they will still be for sale by the time we can say we are ready.