Until you talk to a lender nobody knows. A poor credit history makes it harder to qualify for a mortgage. There are numerous types of credit report problems that cause a lender to reject a loan application. The amount of interest charged on the mortgage may be determined by your credit history. A home buyer should first consult with a lender to find if they qualify, and if they don't, ask the lender what to do to correct the credit problem.
Most lenders can work out a plan to correct the problem within one to two years.
At this time, the home owner can request an elimination of PMI by requesting it from the lender and meeting their criteria for proving value. Remember, when moving into a new home you almost always need more cash than is realized. Expenses arise such furniture, curtains, appliances or just personal touches that's desired. Unless there is a substantial down payment, you won't see a large difference in the payment. VA loans are attractive because they require no down payment in many cases.