As Gail has suggested contact a mortgage broker and see what advise can be given for a solution to your question. First start with the bank you are currently with to see if they can give you a straight answer. If your bank informs you that with your current credit and financial situations it might be difficult to get another loan right away. At this point get your home in the market place and priced right and staged properly and get your condo sold.
In the intrim of paying your bills you should try to find a month to month rental or lease while you pay your debt and increase your credit scores. Make sure to maintain a small balance on a few cards. Once your credit is corrected and you have your financials in order then you should be able to move on and purchase that larger place that suits your needs and wants.
Got Property Get Egen! GetEgen.com
It sounds like you have some equity built into your property and will be in a good spot to upgrade and clear up some debt. Have you tried to open an equity line on your present home? I know it is more difficult today but you may find that paying a Heloc rate will be much lower than the rates credit cards are charging. Also when the time comes if you are trying to line up a sale and purchase you will need the 10% to put into escrow.
At the end of the day you need to try and get your credit score a little higher to open the door to more financing options, get your property ready and on the market. After that start doing your homework on areas and specifics you would consider for your new home. If I can ever be of any assistance feel free to contact me.
Associate Broker Prudential Rand
He knows a lot about first time home buying & move up buying, and the topic of the next meetup is Buying Your home, they get 5 star ratings: http://realestate.meetup.com/1126/
Also check out his blogs that get hundreds of hits a day: http://westchesternyrealestate.wordpress.com/, http://www.LiveArmonk.com, http://livinginbedfordny.wordpress.com
He is also very knowledgeable about short sales and can help a seller facing foreclosure as well as a buyer who wants a deal: http://westchesternyshortsales.wordpress.com/
I have a few professionals that I can recommend to you, all are in Westchester
1) James Pugliese - DML Mortgage - 914.497.2886
2) Christian Babcock - Chase - 914.447.9691
3) Wayne Slaughter - Wells Fargo - 914.261.3502
Give them all a call to see how their perspectives differ and relate. Just think how good you will feel having sold your condo, and credit card debt free when it comes time to purchase. Also they will be able to tell you what is on your credit report so that you can get a head start tightening it up.
Legends Realty Group
This is when a conversation with a trusted financial and real estate advisor would make a lot of sense. You need to talk with someone that knows:
1. Your personal situation
2. Your property
3. the local real estate market.
It might take two or three people to make it all work and make sense. if you need a referral I'd be happy to refer a Realtor in your area that can guide you.
Proverb: Wise is the man who uses the council of many.