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Sounds similiar to what Guppy has. I took him to several vets and he was on lots of different medications before I finally found a dermatology specialist just outside Orlando. She diagnosed Demodectic Mange, which sounds worse than it actually is. He broke out with it when we left him for 5 days at a boarding facility and the doctor said sometimes the stress can lower their immune system and cause a breakout. His symptoms where not what is normally seen as it appeared only on his back (from behind his ears to his tail) and stomach, but skin scrapes showed a large population of the tiny mites that cause the condition. This is why I'm taking him with me on this trip. Once on the medication he cleared up fairly quickly. I'd certainly recommend finding a local deratologist that specializes in canine skin problems. Here's the Wikipedia info on the problem:

Demodectic mange

Demodex canis, Also called demodicosis or Red Mange, demodectic mange in dogs is caused by a sensitivity to and overpopulation of Demodex canis as the animal's immune system is unable to keep the mites in check. This is a mite that occurs naturally in the hair follicles of most dogs in low numbers around the face and other areas of the body. In most dogs, these mites never cause problems. However, in certain situations, such as an under-developed or impaired immune system, intense stress, or malnutrition, the mites can reproduce rapidly, causing symptoms in sensitive dogs that range from mild irritation and hair loss on a small patch of skin to severe and widespread inflammation, secondary infection, and — in rare cases — a life-threatening condition. Small patches of demodicosis often correct themselves over time as the dog's immune system matures, although treatment is usually recommended.

Minor cases of demodectic mange usually do not cause much itching but might cause pustules on the dog's skin, redness, scaling, hair loss, or any combination of these. It most commonly appears first on the face, around the eyes, or at the corners of the mouth, and on the forelimbs and paws.


In the more severe form, hair loss can occur in patches all over the body and might be accompanied by crusting, pain, enlarged lymph nodes, and deep skin infections.

Demodectic mange is not generally contagious to people, other animals, or even other dogs (except from mother to pup); these mites thrive only on very specific hosts (dogs) and transmission usually occurs only from the mother to nursing puppies during the first few days after birth. The transmission of these mites from mother to pup is normal (which is why the mites are normal inhabitants of the dog's skin), but some individuals are sensitive to the mites, which can lead to the development of demodectic mange.


Demodectic mange in dogs can be managed with ivermectins, although there are few countries which license these drugs, which are given by mouth, daily, for this use. Ivermectin is used most frequently. Other avermectin drugs that can be used include doramectin and milbemycin.