I agree with the prior answers but want to repeat what Dave and others have said. Since you have this significant windfall, you should pay off / bring current debt. Also, meet with your Financial Planner and discuss what's best for your individual situation. I've had clients who can pay "all cash" any day of the week, but have been advised to take a mortgage when they purchase by their FP. If you have blemishes on your credit, that can be easily corrected with a great Credit Repair / Credit Management company. Here is one to consider that is very reputable: Manny @ EZ CHOICE FINANCIAL â€“ 562 / 598-5277 see the link below .
You are looking to purchase at a great time and truly anyone can get a mortgage with a significant downpayment. Depending upon how serious your credit issues are, you may have to put down as much as 60 - 70% to get that loan at a high interest rate. Best of luck!
Cheers to you,
Realtor, Southern California & Houston, TX
2008 Chair, Pacific West AOR MLS Committe
2008 Member SoCal MLS Board of Directors
2008 Member SoCal MLS Steering Committee
2009 Member-elect, Pacific West AOR Board of Directors
2009 Member-elect SoCal MLS Board of Directors
Member, CARETS Rules and Compliance Committee