As the provious poster mentioned, unless you are applying for a govenmnet loan, they will not look at the debts of the marriage or spouse's credit. With that type of a down payment, I feel like you will be able to get a deal done even if we had to go through a local bank and put it on their portfolio. I am not a credit repair guy however I can refer you to a company that has done some good work for a few of my clients if you want to try and get hers cleaned up for the future.
PM me and I will call you to go over your options. YOu are welcome to call me as well, Chris Sizemore, TrueSouth Mortgage, 713-888-0101.