There are many options, have you met with a lender? The last year is the most important of your credit history. It is a little used practice but you can get a co-signer on a mortgage...

My suggestion is to meet with a lender that offers many different loan programs, they can access your credit situation and help you to get on the right track to purchase a home. Jeff mentioned FHA and USDA those are both great products but you will most likely need a good payment history in the last year.

If you have access to JP Morgan Chase in your area, they may be a good place to start. They are one of the few lenders that is growing their market share in the mortgage industry.

I hope this is helpful, best of luck!

There are a couple of different mortgage programs which you may look into. An FHA loan program is backed by the Federal Government. It's program guidelines allow lenders to work with folks who's credit is not perfect. Also, check into a USDA loan program or a mortgage through the Alabama Housing and Finance Authority.