Woody has the best answer here, most of the information out there including two first time home buyer seminars I attended here in Wisconsin put the magic number at around 780, with 3.5% (FHA) or 5% (traditional) down.
I know how hard it is to build up your score after going through a tough time, it takes time and perseverance. Your local lender can help you, but there are NO quick fixes for bad credit and a lot of people and companies that will try to take advantage of you by saying otherwise. If you don't see any option to either buy directly from the owner or do a lease to buy purchase (which will cost a lot more in the long run, but would be an option), you might be better off renting for another year. But go to YOUR lender first (notice I didn't say A lender, go with the one you're familiar with), and get their take on it. It might not be as bad as you think. Good luck!