Jeyajohn: Here's some advice you might not like. Forget about buying a house until you get your credit straightened out. A tax credit for a downpayment is totally useless if your credit is trashed. You can order a copy (free) of your credit report. Do it or have your bank do it for you.
Secondly, cut up that recently acquired credit card. If you can't pay cash for what you want to own, you don't need it. Start a bank account if you do not have one and begin to save ANY amount weekly. Buying a home is serious business - a great investment, but not something you enter into lightly. Look at all the foreclosures out there. Don't be one of them.
Position yourself properly and before you know it, you will be a proud homeowner and you will have WORKED for it. Call me if I can help. 912-355-5557.