To qualify for a traditional loan, you are going to need a minimum credit score in the 620 - 640 range though most require 680. Accordingly, in April, Wells Fargo & Co., the biggest U.S. home lender, cut its minimum credit score for borrowers of Fannie Mae and Freddie Mac-backed loans from 660 to 620.
Additionally, lenders are going to look at your debt to income ratio even more than they will look at your credit score. As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 33 percent of your gross monthly income. Your total monthly debt obligation should not exceed 40 percent of your gross income. Total dept includes housing expenses, car loans, child support and alimony, credit card bills, student loans and homeowner association fees.
This will help you to gauge your finances and the amount of mortgage that you can afford. But the best answer you can receive is to go down to some of your local banks and see if you can qualify for a loan and for how much.