YOU ARE IN LUCK! FHA loans don't even look at your credit. That is the beauty of Federally secured loans. If you have not yet purchased a home, then you can qualify for an FHA loan. I beleive the lender will require 3 years of tax returns to verify whether or not you have owned a home in your past. The best step you can take is talking with a mortgage lender. Not a brokerage. Your loan origination fees will be smaller if you talk with a conventional lender, plus you can rest assured that they are not some fly-by-night outfit like we have seen in the past. Talk to your bank about who handles FHA loans and then talk directly with that person. If your bank does not have someone who specializes in this type of lending, talk to another bank who does. Bank of America is really picking up the pieces of the mortgage fall-out, so they are very willing to work with new buyers. No matter who you choose, make sure they are reputable. The best part about an FHA loan and the current housing market is that you can request the home seller to pay for your closing costs and minimize your out-of-pocket expenses. Or, ask your lender about the Oregon Bond Measure, this may or may not help depending on your household income level. Where in Oregon are you planning on purchasing?