Your best bet in to speak directly with a lender. A good loan officer will be able to address those low scores and guide you best. I would recommend Jack Heinzman at Residential Mortgage Services. RMS funds and underwrites their own loans. And I just had a client go VA with them. His number is 650-4311.
Once you've spoken with him, you'll need a realtor. Call me. I work well in that price range and would welcome the opportunity to assist you.