This is a "what kinds of credit can I get if I am in this situation"
question.

Me and my wife are considering seriously at getting a house.
My wife just filed banckruptcy 6 months ago. My credit score is 650.
My total debt including car and all creditcards debts are
45k, (25k credit card, 20K car). The total monthly payments is $1200/
mo. My income is 47k/ year or $4100/mo. gross, $3200/mo. net take home
(debt-to-income ratio of 38%). (I did not include rent, I will explain
below, but FYI, if rent were to be included my D-to-I ratio would be
53%!)
My question is, if I plan to buy a house/ get a home loan, what should
I do? Should I bite the bullet and go buy the house with my own
credit? Or should I include my wife in it? She has a job, and together
we have a combined annual income of 89k/year (gross). That way, our
income/ debt ratio is much better (debt-to income ratio of 21%). The
only thing is, she has just filed for bancruptcy, which wiped-of all
her debts. Also, if I try to go at it alone, will the lender/ mortgage
broker mind if my wife filed bancruptcy? I am living in my
mother-in-law's apartment (her property), and are paying about
$500/mo. in personal rent to her, she said she's willing to say to the
lender that she's letting me and my wife stay there for free in order
to even lower our monthly obligations for a better chance, will this
work or help us in our cause? (we decided to move out eventhough we
are saving lots of money in housing, personal reasons)

Which does lenders fear more? Wife which has banckruptcy in her credit history? Or
income-to-debt ratio of 38%? I feel together, me and my wife have very
good combined income.
What kinds of rate can I get with these kinds of situations? I can not
afford large down payments, at most 15% if not 10%. So what should I
do, apply the credit as an individual? Or with my wife eventhough she
has filed bancruptcy? If I try to apply as an individual, can I list
her income as part of my income under "other income
source" of extra income from wife or something like that?
Which banks in San Francisco, CA will be most favorable in my
situation? I hear Mechanics Bank is a fairly good bank for people with
less than 850 FICO score, any other banks? Or should I just use a
mortgage broker? Also, buying a house in San Francisco needs a home
loan of at least 350k, this is not Alabama unfortunately.

Straight answers please, also, no multiple links that make me read too
long. Thanks in advance.