Also, a letter explaining your situation may help. I have had several renters with negative items on their history, but a letter explaining their situation cleared matters up, and they were able to rent.
A stable job is good, and if you have a stable rent history (with receipts), that will help as well.
If you have a good stable job with good income and have some money for a down payment, a good option maybe for you would be Seller Financing. With Seller Financing you would need a pretty good size down payment(usually 15-20%), where as RTO or Lease Option/Purchase you can usually get into a home without a huge down payment. Depending on your situation, I recommend these routes if conventional financing is not possible. Credit scores don't matter as much with these different flexible financing options, as long as the owner is comfortable with your situation. Another thing to keep in mind with RTO or Lease Purchase/Option is that these are usually structured with a 1-2 year lease term and sometimes this term is not long enough time for someone to straighten out there credit situation in order to qualify for financing on the home when it comes time to buy. Also with RTO and Lease Option/Purchase you are usually not able to deduct mortgage interest from your taxes because you are technically only renting. (contact your tax account for details on taxes). Usually with Seller Financing, the buyer is on title and since its being financed through the seller, the buyer can take advantage of the tax write offs( again, consult your tax account for more details). One more thing to keep in mind is if you are going to go with one of these flexible financing options, that you find the home that you love and that you are comfortable and want to buy it. Nothing worse than being in a contract on a home that you have to buy out in a certain amount of time, and you don't even really like the house. Sometimes, it can make more sense to rent for awhile, and work on fixing your credit score while saving for your down payment, then when you are ready, you pursue the home that you really want. I hope this helps you.
Jeffrey G. Vaughan
America's All In One Real Estate Services, Inc.
7720 E. Evans Road, #102
Scottsdale, AZ. 85260