There is alot of information needed to answer this question ... do you have any mortgage lates in the last 12 months? What is the LTV (loan to value) of the property using 35K? The problem you are going to run into is with the stated income part. Depending on the LTV you might not be able to go stated.
I just looked at one of my sub-prime lenders guidlines for wisconsin, if you have no mortgage late you can finance up to 90% LTV stated, if you have up to 3 30 day lates and no 60's then you can finace 85%, if you have 1 60 than you can finance 80%, if you have 1 90 than you can finance 75%, if you have a 120 you can finance up to 55%. Your rates are not going to be good however.
If you are just looking to prequal then your LO should be loking at your income, and your current debts to figure out your current debt to income ratio. Once he has your DTI then he can figure out how much you can afford, and at what interest rate to keep your DTI at level that is acceptable to the lender. Once that ahs been determined, he can tell you what amount of loan you qualify for. Then you can figure out how much you qualify for, and how much you have for your down payment. Once you know the total you can spend, you need to look at what LTV you will qualify for. Once you know all this information (it really only takes a few minutes, even though it sounds long and drawn out .. lol) you will know what price range on home you are looking for.
As far as mortgage lates, if you have never had a mortgae before than you do not need to worry about it. If you have had a mortgagge before then it is how many times you have been late (30+ days), and how late you were.
I am afraid that it is going to be hard, or near impossible to obtain 100% financing with your current credit score. the reason you are able to obtain a laon a vehicle and not on a mortgae is because mortgages are sold in the secondary market to investors, where as cars are not. There for there are guidlines that a borrower must meet in order for the loan to be marketable on the secondary market.
What is your credit like? Is it possible to clean up, and do a rapid rescore on?? If it is, then that might be a good way to go. However be carefull about what lines you adjust. For example, if you have a collection that is 2 years old, paying it off will possible be counter productive because it will now apear as a new derogotory trade, as opposed to an old derogotory trade. So you will gain some ground by showing it as paid off, but will lo0se ground because now it is currently a bad trade line as opposed to being a mistake in the past. It is a catch 22.
I am the owner of ASK Financial Services in Saint George, UT.