Open Question: I was denied a home loan, now what?

My husband and I were denied a home loan for a $24,000 foreclosed house, because the bank said I don't have enough credit. Years ago, I was worried about this and purposely got two credit cards, paid them off over a few years and closed the accounts in good standing. Also, my husband is a combat veteran with supposed eligibility for a VA Home Loan. What can I do now to build up more credit? Will it be years before we can be approved for a home loan?