Well, no doubt you've been looking at the "Rent to Own" thread--it can work if you do your inspections and so forth.
If possible, look to family. Why pay a bank all those fees and interest too, when you can pay a family member the interest? Helps you, helps them (yes, you both should report the income (lender) and deduction (borrower) on your taxes). Another option is your local credit union. They are much less inclined to deliberately over-extend someone.
What you're saying sounds awful. IMHO, if creditors deliberately extend credit to people who shouldn't have it at all or force them into more credit than they need and the people default (in other words, preditory lending that reasonable lenders would not stoop to), the creditors should eat the loss and not be able to raise rates on everyone else.
Good luck getting a place--with interest rates going up soon, from the looks of it, lease-option (a legitimate one) might be your best bet.