Creative financing is another option to buy a home for someone with credit that's not great.

Yes, you may check into FHA loan programs. These are government insured loans, they require minimum down payment of 3.5%, and steady and verifiable income.

FHA will consider borrowers with FICO score as low as 500. If you score is low, you can work with a non-profit credit counseling agency to help you with a plan to rebuild your credit profile.

Check here to learn about FHA loan programs: http://portal.hud.gov/portal/page/portal/FHA_Home/consumers

Search here for FHA lender in your area: http://www.hud.gov/ll/code/llslcrit.cfm

Search here for a local housing counseling agency in your area: http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm

NOTE: FHA loans have an upfront mortgage insurance premium AND a monthly mortgage insurance premium. The upfront premium can be rolled into the first mortgage. Ask the counselor for more details when your talk to him/her.

I hope the information helps.