Right now most Lenders are requiring a 620 credit score to qualify for a mortgage loan., but with 20% down, you may be able to go down as far as a 580, with good compensating factors. To be able to give you an accurate answer on whether or not you can qualify, a Loan Officer would need to look at the entire picture when it comes to down payment, credit scores, debt to income ratios, etc. Once they can get all the details, then they could let you know if you can qualify or not.
Just with the few details you have given, I would say there is a shot at getting approved, but a full application would be needed to give you a definite "yes" or "no".
Both of the answers below are right. You need to put in a full application with a loan officer. One that knows credit.
Here is a little book about credit.
Read this and feel free to contact me regarding follow up questions.
You really need to be over 620 FICO score.... And you are really close
In order to get the best and correct answer to your question, I would highly recommend you talk to a loan officer. There you would find the "right" answer to your question. If you would like me to have one contact you, just let me know either via email or call.
You need to go through a Comprehensive Pre-Approval process so you know exactly where you stand and address any issues before you start looking at homes. It's all about preparation. I go into more detail on this part of the process here: http://www.elliottoliva.com/preapprovedvsprequalified
Depending on where in New Braunfels you are interested in you may qualify for a USDA No Money Down loan so long as you meet the income, credit and property criteria.
If you are going to keep your current home and use it as a rental, then it really doesnt hurt or help you provided you are charging enough rent to where that payment does not hit your income to debt ratio too hard.
If you are going to sell your home... then being able to show a large down payment, or having "Reserves" in the bank can really help your cause quite a bit. It is amazing how lenders will be more lenient when you have a wheelbarrow full of cash in the bank. You just need to hook up with a loan officer that works with a wide variety of banks and knows which ones will play and which ones wont.
Sounds to me like you guys are easily within strinking distance.. I bet if you just paid down a little debt, or paid off a collection, or paid off a small account in her name... you both would hit 620 and have the pick of the litter.