Basically, so long as your debt to income ratio is 70:100 or higher, nobody will loan you money. You need to do two things:
- Lower your debt. Stop using credit cards and get them paid off as fast as possible.
- You'll need to prove that you can make mortgage payments. You do that by putting money every month without fail, into savings. The amount you deposit each month needs to be 'at least' the amount of what you think your mortgage payment will be. You'll need a two year history of this that will need to be consistent.
This does two things. First, it gives you the minimum 15% down payment you will need. (down payment requirement can be as high as 30%, depending on your credit score at the time you apply for the loan.) Second, with a consistent history of putting say, $1000 a month in the bank, it indicates that you most likely can afford the $800 month mortgage payments, and that most likely, you will make those payments without default.
Lenders don't care how much debt you already have. They are concerned about your ability to repay a loan. People with low credit ascores can still get a loan to purchase a house. There are FHA loans specifically designed to do this with a minimum down payment. Your ability to get one of these loans depends upon your ability to repay the loan and to service all your other recurring obligations at the same time.