There are still alot of sub prime lenders out there but you have to ask yourself are you ready to buy a house with a subprime lender? What's your time line? Can you hold off a year or so and to get your credit scores up and you Debt to Income ratio lower? With your scores you will most likely get approved by someone somewhere out there but can you live with the terms you might get offered?
Those are just some of the questions you have to sit down with your sign. other if you have one and decide on. This is more than likely going to be the largest and most important purchase of your life and are you ready for it? Are you ready for the unseen cost's of owning a house. The boiler breaks down, no landlord to call. Property taxes, water bills, school taxes etc.
I'm not trying to discourage you or anything, I'm just hoping you are prepared and done all your homework on how the home buying process works and all the cost's that go into it and everything. I think if you look at the foreclosure fiasco and the sub prime lending burst that has happend this past couple of years, you'll find that many of those home buyers weren't ready to buy a home and we caught up in some horrible mortgage terms because they weren't in position to obtain a mortgage with a prime lender.