L.B.
First of all - check your credit score and find out why it is low. If you have unpaid bills from a long time ago - some companies will report these forever - and thus it will always affect your credit score. Find a way to resolve those bills.
whatever you do -DO NOT take an ARM (adjustable rate mortgage). That is the reason why all the banks are needing bailing out now - because they extended loans to people with these loans and the borrower really could not afford them - so everyone got screwed.
Go on-line to find mortgage companies - you may still find one that will finance you - just make sure you do not over extend yourself - it is not worth it. iof this does not work out, make a plan to fix your credit and save money so you can take advantage of the next great deal on a home that comes along. good luck!
About Me: A 54 yr old working mom of two grown kids and married 31 yrs.