First thing, get a realistic view of your budget and how much you can afford. If its your first house, look into a first time buyers program to get a fixed rate below 7% (this helps if you dont have the best credit) And if you buy during 2009 you get 8k back from taxes next year. After you know about how much you can spend look around on HAR.com and see what area and what your options are for your budget.
Look into first time home buyer programs. I'm not sure if they are working with people with so-so or bad credit because of the economic times we live in but they might. My friend, who I started a thread on several weeks ago, is using a program from the USDA called a Rural Development Loan. It is 100% financed so there is no down payment required and you do not have to pay mortgage insurance which runs you about $60/month in my parts. It is a first time home buyer program. There are income limits. Do a google search for more information. There are many first time home buyer programs though. If I were you, the first thing I would do is talk to a Realtor or loan officer/banker that you trust to get some more information.
