All these advise are right on.
I believe it's better for you to go direct to the bank
that you have right now and either talk to their financial advisor or lender.
Since you're just starting towards your goal of home ownership
people in the bank can be your best resource.
As an agent I worked with a lot of clients that have credit problems.
A lot don't even want to bother because they are overwhelmed by it.
Your parents help with the down payment will be a big help.However there
are programs that can help you from the FHA 3.5% down payment program.
Well since you know the problem, this is the place to get advise.
Follow what ever you believe will help you because a lot of the
recommendations here are commendable.
What ever path you take good luck.
Century 21 ACtion!
CA DRE Lic#: 01362188