Crystal, You need to take steps to show you are working on your credit and to show those who determine qualification for various programs/loans that you are serious. Loaning money or selling always involves risk and those loaning like to minimalize those risks. (So would you).
I would like to suggest several things that may help inform you and begin the home buying process for you.
.....I would suggest finding a local homebuying program. You will learn about programs (many which require taking a homebuying course) available in your area. You will make contacts. You will learn some credit repair techniques. You will be showing you are serious.
I would check this site.....http://www.govbenefits.gov/govbenefits_en.portal
...as a veteran to see if you may be eligible for other benefits..
This is the Gov. site for all loans. Check out the Housing loans (VA/FHA/HUD/USDA) to see what is currently available and which ones might work for you.....http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p
I would take advantage of the counseling services provided for free by the Gov. in order to show I was serious and to keep current with possible new assistance....http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
These are the beginning steps I would take while I learned as much as possible about the area I planned to buy in. You have time, make good use of it and you will be successful in getting a home.
Please remember that as recent events have proven, Getting a home may be made easy for you, but when it comes time for keeping the home? Well help is scarce! Keeping the home is always the hardest part...........
Good luck, Dunes