Don't dismiss this kind of loan... it may be exactly what you need. This may be a good way to get into the home, then when your credit is fixed, you can refinance and get the good rates. By then, you should also have more than 50% equity because of appreciation. Talk to a Loan Broker, not a bank about finding these loan sources. Banks are conventional lenders. Loan Brokers have many sources for financing.
FNMA has some loan programs on their own Foreclosed properties that are more lenient regarding credit, too. Go to the FNMA site and find links. A Loan Broker may also be familiar with these loans.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors