FHA loan is a good choice.

1. They don't care much about credit. Bankruptcy which has discharged for 2 yrs can qualify.
2. You can put down as little as 3.5% for down payment
3. FHA Streamline will allow you to refinance after 6 months without credit check and no appraisal. FHA will refinance in the future at today's appraisal value regardless of the declining market. Thus even in declining area, prices dropped, still can refinance. The only requirement is that your original loan is FHA.

Don't know how bad your credit, please consult a mortgage agent to check your credit and options. If you need credit repair, Erica McClen (1st answer) has referred you a credit repair company which would help you too.

Good luck with your home searching.

Angela leung

Leslie, your plan to get things in order so you can buy, is a winner in my book..Not clear where you are in terms of fixing your credit, but here are some good basic tips on a way to begin....http://www.bankrate.com/brm/news/cc/20011008b.asp

Here's a large amount of good information on mortgages, calculators, ect..worth looking thru...http://www.ofheo.gov/PublicInformation.aspx?Nav=136

I'd look thru the current gov. programs to see if I might qualify for one.....http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p…

I'd keep an eye on the Hud homes available and read about the bidding process...http://www.tenmanagement.com/listings/state.do?code=NC

I'd keep an eye on stuff like this....http://mortgage-x.com/general/rate_trend.asp
http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp

In other words, as you work on getting your credit to where you want it to be there are many sources of information available to you. I would make use of them in order to better understand the the market area and what is possible..

Good luck, Dunes

Leslie, I have a wonderful lender that is based in Raleigh but offers Credit Repair counseling with great results. They put you on a plan, help you with credit blemishes and prepare you for homeownership.

Contact Chris Earnhardt at Alera Financial at chris.earnhardt@alerafinancial.com to set up a time to chat.