I am in kind of a similar sistuation about the home issue. My wife and I went through some tough time's (we didn't have a major medical issue and i hope your child is doing well) but we did run into hard times with our finances after our first daughter was born. We had some cc's charged off and settled and a few collections and 2 small judgements that are paid. We also fell behind on our home and car loan but have since recovered. In our case we have a good relationship with our local bank and we are wanting to start building our first house within a year. After several conversations with the banks president and vice president they basically wanted to see the old debt paid off, everything clean for 2-3 years and 20% down and we could probably do the deal. I have been freaking out about my score and they told me my score is more of a guide line, that they look at the whole credit file, how was everything handled before the incident, during the incident and after the incident. Were the old accoutns paid, are the new accounts being payed as agreed, and what does cash flow look like. My advice would be to talk to your current bank and feel them out, maybe flat out ask them, thats what i did. Maybe start building a relationship with a new bank. Everyone has a little different scenario and for me i guess i am just lucky and have always made good to my local bank. Best of luck to you in your journey.
