I'm sorry for your circumstances. Credit issues due to medical expenses are often looked at differently than other credit problems. I would suggest you talk to a local mortgage broker and be up front with your situation. You may not qualify for a conventional mortgage, but there may be other options open to you.
Worst case scenario a Hard Money lender is more concerned with having an equity position which it looks like you'll have than your credit. Another option would be owner financing, again your large down payment and an above market rate may interest some sellers.
Mortgage lenders do not allow Land Contracts on their properties. Be careful.
I would have to do a search in the M.L.S. to find Land Contracts in your area. If I find a land contract I would call you. But I would do a search first to determine if it has a free and clear title. If I cannot locate a land contract, then I would put you into my search list. When a property which allows a land contract becomes available, it will immediately notify me and I will call you.
It would be difficult to get a mortgage with bad credit. If your credit score is 700 or more, you should qualify for a 50,000 house with 20,000 down. A lot of mortgage companys do not want to bother with a small mortgage like that. Your best option at this point would be to do a land contract. A land contract is seller financed. The owner would have to own the property & not have a mortgage on it. I had a listing in st clair shores that sold on a land contract for 50,000. It was 3 bed brick with basement & garage.
You could pay cash for something smaller in st clair shores, eastpointe or warren.
I hope this helps you. Let me know if I can be of assistance.