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Would we be eligible for a loan based on possible collateral? (Bad credit)

Hey guys. Please pardon the possibly really stupid question. Have found mixed info reading online.

Situation is this. We own our primary home. It’s worth maybe $425k and we owe about $300k. We inherited my mother’s home a couple of years ago. It’s fully paid off in the same neighborhood. Worth maybe $500k. We have turned it into an AirBnB that is doing very well.

I am self employed and make good money. Could show ~$250k take home on my taxes next year, plus the AirBnB revenue.

We’d like to move to a larger home soon and turn our home into a second rental.

The issue? I was the executor/trustee of my mother’s estate and it absolutely wrecked our credit. Some poor decisions by family members left me personally floating approximately $170k in estate expenses for nearly two years. We had a 800 credit score when she passed. It’s now under 600 due to a bunch of late pays and small charge offs from the mess. Stuff is now all current, but it’s going to take forever for the credit report not to look like a bloodbath.

Does the cash position in the inherited home, along with my income, give us any chance of a reasonable loan qual? We’d only be looking in the $600k range if that matters.

submitted by /u/KeyParking4032
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source https://www.reddit.com/r/RealEstate/comments/1o68o4b/would_we_be_eligible_for_a_loan_based_on_possible/
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