Based on your credit history, I would say that your chances are slim to none.

Sorry, I have to agree, you have a snowball's chance in hell.

I assume since you have $17000 debt (plus the car loan) than you don't have cash for the down payment or closing costs.

Why did you buy a new car when you already are in debt? Can you sell it, and buy something used?

You need to get that debt paid off and save up for the down payment.

You say you are going to lose a big chuck of your income. You need to take action now to get your finances in order before that happens. If I were you I would do the first 3 steps of Dave Ramsey's plan then save as much as I can and buy the cheapest house I can find that's suits us.

I think you'll be renting for a while yet. There are too many bills you haven't paid, and you don't have enough savings to get a conventional loan. Too many red flags if I were the underwriter.

Your to-do list:
-Clean up the tax debt
-Clean up the medical bills
-Sell the new car and buy something less expensive
-Find more work to supplement your income and replace the disability down the road
-After the debt is paid off, save like crazy for a decent down payment

If you buckle down and pay off debt instead of (what appears from your info above) serially walking away from it (foreclosure, bankruptcy, letting medical bills slide, fighting tax audit), that will go a long way towards showing a bank you really will do whatever it takes to pay a mortgage.

Sorry if that sounds harsh, but look at it from the bank's perspective. Would you lend to you?

Also, keep in mind the fallacy of "a mortgage would be cheaper than rent." You've got one foreclosure on your record, so you know what it's like to get in over your head. Why are you in a rush to do that again?

Any bank I've ever dealt with (for my buyers), wont even touch an application unless the credit scores are AT LEAST 640. They can't sell these loans.

The bankruptcy is only 3 years ago, that may not be long enough (I've seen people get thru with a 4 year old bankruptcy, but nothing sooner than that) but they have repaired their credit.

And a foreclosure that is only 6 years ago ...... back taxes, low down payment and you haven't fixed your credit score yet. I dont think you have a shot right now.

I agree with the above. And, while I can see your point about $1850 rent per month being too high to pay, your next job is not to buy, but to find a lower cost of living (or at least, rent) location.

can you just move to a location with lower rents? then you could clean up your financial situation.