While things are looking up for the recently engaged Bristol Palin, the same can’t be said about her baby daddy and former fiancé Levi Johnston.

According to a new report, the father-of-three — who has six-year-old son Tripp with Bristol, as well as two-year-old daughter Breeze and newborn daughter Indy with his wife, Sunny Oglesby — has had a series of financial difficulties and, as a result, is moving back in with his mom.

sherry johnston

Levi’s mom, Sherry.

An insider tells ‘Radar Online’ the 24-year-old and his wife tried everything to avoid moving in with his mother, Sherry, who was once convicted of selling prescription drugs.

“[Levi and Sunny] couldn’t even get a loan for a small camper to live in temporarily,” a source says. “That was their first plan, but four banks denied them.”

levi johnston indy

Baby Indy, who was born on Jan. 11.

The grandma allegedly wasn’t keen on opening her doors to her son, but she “didn’t have a choice” unless she wanted to leave her own grandchildren homeless.

The source claims Sunny’s extravagant spending habits are to blame for landing them in this difficult situation.

breeze johnson

The couple’s daughter Breeze, 2.

“She just spends his money on stuff for her — hair extensions, clothes, shoes, expensive makeup, all sorts of unnecessary purchases,” the source explains.

“And it’s all while she tells Levi that the money being spent is going towards clothes, diapers, food for this daughter and food for them. He’s not being a deadbeat dad. He’s such a good dad.”

Apparently, Levi is providing the only income for the family-of-four. And this isn’t the first time he’s relied on his family for help. He allegedly moved in with his sister, Mercede, three years ago.

levi johnston family

Levi, Sunny, Tripp, Breeze and baby Indy in January.

Additionally, he owes Bristol child support, and the Palins have reportedly been clueless as to why he’s been unable to pay — though they’re about to find out!

The source adds, “Bristol and the Palin family have no clue how broke Levi now is!”

Sunny has since taken to Facebook to confirm she’ll be living in with her mother-in-law.

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