Pay off car or buy house?

[PokerAce]

I've recently paid off all of my debt, minus my $18,000 car loan. I have enough spare cash to pay off my car, but I also want to purchase a house before my apartment lease runs out this summer.

Would it be smarter to pay off my car (9% APR) now and save up my money for a down payment later on, or use the cash for a down payment on a house now and just continue with the car payments?

Another detail that might be important is that my wife and I are divorcing and she has a car that the loan is in both of our names, but she will be paying off. So those two car loans are the only active debt I have.

One thing I'm concerned about is getting a mortgage being self employed for less than two years. Would a $25-30k down payment on a $100-125k house get me a mortgage with little fuss and a pretty good interest rate?