The RE bust was caused by people buying homes they could not afford - people with fair to outright bad credit, people who chronically mismanage their money, people who were ignorant about home ownership, and people who just plain do not earn enough to pay for a mortgage with insurance, taxes, and all the other costs of owning a home.
To buy those very low-cost houses in Detroit, you must pay cash in full. Lenders will not bother doing mortgage paperwork for mortgages of less than about $50,000 - costs of doing the processing are more than earnings over the life of the mortgage. Furthermore, those houses are deteriorating & need work, many do not meet code, are uninsurable until they are fixed up, etc. These properties are not valid equity for a mortgage. You want a cheap house, you pay cash & fix it up.
BTW, remember paying rent on time is not a sign you can afford a house. You not only have to pay the mortgage, but also homeowners insurance (mandatory), taxes, utilities (which are higher than for an apt), maintenance & repairs, trash, water & sewer, and other costs renters never see. Lots of renters equate rent with the mortgage payment & forget to calculate all the rest, which can add up to more than the mortgage every month!
FHA mortgages require a minimum of 3.5% down, but they are not being done! With less than 20% down, it is very difficult (and more costly) to get a mortgage & actually have it funded by closing. You don't want to hit any hitches in the mortgage process.
You may need to move into a cheaper, smaller apartment that you can afford since you need landlord verification of at least 2-3 years of consistantly on-time rent & utility payments - NEVER late once! Ensure rent does not exceed 25% of your income. It's good that you always pay rent on time, but you are still in trouble over living expenses. You need to learn money management. You need to save - lenders want 20% cash down, plus closing costs, plus 3-6 (some now want 9-12) months of reserves. Minimum credit scores of 700/720 or 760 for conventional with NO collections or delinquencies whatsoever for past 2-3 years. Minimum 3 years since discharge of any bankruptcy or foreclosure. Max house price of 2 to 3 times annual gross income, and if you are over 2.5 times income, you cannot have any debt (no even car loan), may need more down payment, and you are are at serious risk & may pay higher interest rate, more points, etc, to do this.
If you want a house, you & hubby need to sit down and rework your budget. Slash spending. Ensure payments on everything are made on time, as you are doing with rent. Clean up your credit. Save a lot of money. Read Robert Kiyosaki's Rich Dad Poor Dad series of books (go to public library - you cannot afford to buy them). Once you fully understand his concepts, then study & apply personal management guides. Get a good financial management education for yourselves, and get to work.
You can dig yourself out of your financial hole and buy a house if you work at it. Living on one income is tough, but if you rework everything, maybe even current rent, you can do it. Once hubby has a job, live on one income and save everything from the other income.