Double check on husband's VA eligibility. If you did not default on the last loan (or did not allow someone to assume the old loan who was not a vet), you could find yourself in a better situation with a VA loan.
I've worked in this industry for (way too) many years. Some people have legitimate reasons for credit delinquencies (major health issues, job loss due to layoff). If you can document the reasons, many lenders ask for a letter of explanation to put in their loan file to present to an underwriter to review when the loan is submitted for approval.
Check with a realtor who does a lot of business in your area - ask for a referral for a lender who is proficient in FHA/VA lending.
Depending upon how "rural" the area is, USDA (used to be called Farmers Home Administration) offers rural housing loans - and I know they loaned on mobile homes attached to a permanent foundation at one point - at least in my area of the mid-west.
