Your score will go up every month that you bring down your credit card balances. You may want to consult with the credit counselor at your local non profit housing group on how to speed up an increase in your credit score.
I'm very sorry to hear about the trials and tribulations life has handed you, although here is your point of relief!! As it sounds by what you explained you are not very far from a new home. I do have a few questions for you though and I have the perfect mortgage broker that will not only work closely with you, he will ultimately get you on the path of homeownership.
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Your best option is to talk to a mortgage officer, we have a wonderful loan officer in our Coldwell Banker Glastonbury office, Barbara Hallwood. She will sit with you and speak with you about whether you can purchase now or what you need to do in order to put yourself in a position to purchase. Her email is firstname.lastname@example.org