I've never owned a home, and i heard there are ways to benefit from being a first time home owner.

If your credit score is below 620 you will need to do some credit repair before you even think of moving forward. If you are going to look just goto open houses and make sure you are telling the agents in the open houses that you are not ready because you are repairing your credit...it should take you about a year and you'll be ready to go assuming your scores are in the mid 600's. Good luck!!

As far as the banks are concerned, first time home-buyers are riskier borrowers. You may be able to find some local government down payment assistance for cheap. However, if you don't qualify with the bank it does not matter. If your credit is clean but have a low score, you may get approved for an FHA loan (most lenders can do them). FHA does not consider score.