That's not to say it's hopeless. If you have good income, and a good down payment, you might find a local bank or credit union who will consider you for a balloon mortgage. (eek!) This is not for the faint of heart. But by using an in-house mortgage with a local bank, you can get into a home, make payments for 1 to 5 years depending on the term of the balloon note, and then refinance into a more traditional mortgage.
Otherwise, you could try for seller financing; this is also a temporary type of mortgage. The pitfall here is most private sellers are NOT going to report you good payment history to the credit bureau, so after 1 to 5 years of making payments, if you can't refinance - poof! Your land contract is up, and there you are, owning the seller the remaining balance in a lump sum and no way to pay it.
If all else, put your energies and money behind improving your credit score. I know it's tempting to want a house NOW while prices are low - but if you end up getting into a bad financing deal out of desperation, you're not going to get ahead. I've got a couple of blog posts on Trulia that might help you. Best of luck!