You need to go to the vet ASAP!!!! This sounds like it could be sarcoptic mange/scabies which is very very contagious even to you.

You HAVE TO GO TO THE VET- that is the only way of getting rid of it. Your dog can die from this if the sores become infected.

If you truly love him- take him the vet. You should not have a pet if you can't afford to take care of him. Vet's will work with their patients on payment. Please take him to the vet.