Really depends on the area and the level of BAD the credit is. Many lenders have CRA (community reinvestment act) requirements and create programs to accomodate credit challenged customers with little to no down payment. I would check with local banks or credit unions as they seem to have more options in my market.
Converting your home to a rental is always an option, but most lenders won't recognize rental income until you have two years of history. The market is beginning to normalize in most areas and if you could hold out for another six to eight months, you may be able to realize a sales price that would work for your situation.I hope that helps some.Rich Daugherty