Congratulations on deciding you want to buy a home! I'll try to answer your all your questions, so you can know what to expect.
There are a lot of bank owned properties available right now, and many of them can be purchased at a great price! The problem with foreclosures is that they usually always are in need of repair. Everything from flooring, paint, bathroom fixtures, to plumbing, roofing, & electrical issues. Banks are hesitant to make loans on properties that need too many repairs to be made.
The good news is that WHEDA has started a new loan program called Neighborhood Advantage. This program assists buyers like you who want to purchase a foreclosed property, and can even assist you with down payment and closing costs with grant money.
With an FHA loan, you would have to have 3-3.5% of a down payment, and the property would have to pass an FHA inspection. Most foreclosed homes won't pass this inspection. With the WHEDA Neighbhood Advantage program, you would could have as little as $1000 of your own money as a downpayment, and the remainder would come from grants.
Although the WHEDA program doesn't use "credit scores" to determine credit worthiness, you would have to meet certain credit and income eligibility before they would issue you a loan. Your best bet would be to check out their website at: www.wheda.com. They can direct you from there.
To answer your last question, a land contract is a contract between a seller and a buyer where the seller provides the financing to the buyer at an agreed upon purchase price, and the buyer repays the loan in installments. The seller retains the title, while allowing the buyer to take possession of the property.
Once the full purchase price has been paid, along with any interest charged, the seller will convey title to the buyer. An initial down payment is usually required at the beginning of the loan, and a balloon payment is usually required at the end of the term. The down payment is an amount agreed upon between the buyer and the seller.
There is no official "list" of properties that are available for purchase by land contract, and you'll never find a forclosed or bank owned home that will accept this type of deal. Needless to say, they're a little hard to come by.