They are going to look at all sorts of stuff… your debt to income is a big one… but most of it boils down to whether you are credit worthy to lend to.I would recommend picking up a copy of Rich Dad poor Dad for some inspiration.

The major differences are terms, that usually there are balloon payments involved, the loans are generally given out based on the performance of the property rather than the credit worthiness of the borrower, and generally is going to only be 75-80% LTV. 

I am still paying on some unsecured debts in hope to maintain some credit worthiness.

I have found that the more credit-worthy a tenant is, the more they are willing to move out when the lease is up, especially since they care about a good landlord referral. 

We look at your Credit Worthiness and the property cash flow. 

You can use DSCR or Asset Depletion based loans to get in a property with as little at 20% down based on your credit worthiness. 

Then obtain a renovation proposal from a Certified 203k Contractor and submit the proposal to the lender so that the lender can order the appraisal.On both versions, the appraisal, contractor’s proposal and the 203k Consultant’s work write-up (required only on Standard 203k) and Specifications of Repairs (Standard 203k only) are submitted to the lender for approval.If the borrower passes the lender’s credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance of the property, the remodeling costs, plus any required contingency reserves, allowable closing costs, and mortgage payments (only on Standard 203k ... up to 6 months).At closing, the seller or previous mortgage of the property is paid off and the remaining funds are placed in an escrow account to pay for the repairs/improvements and any allowable mortgage payments during the rehabilitation period.You now own the home (or refinance is complete) and can begin the renovations.Escrowed rehab funds are released to the contractor during construction through a series of draw requests for completed work.

If the renters are credit worthy, they can take advantage of the low interest rates and earn equity for themselves rather than paying down your mortgage.  

For one thing Chapter 13 is a repayment schedule rather than a whitewash, and assuming you are keeping everything current you are actually more credit-worthy than a Chapter 7.

This is a range because interest rates are charged on credit worthiness.