First time homebuyer.....HELP!!!?

Ok, we bought our home in 2008. We now have bad credit cause of medical bills n credit cards. We got the first time homebuyers credit in 2010. Can we even buy a new house with bad credit? If so, do we have to wait 3 years from time of purchase, or 3 years from the time we got the homebuyers credit to sell our home???? Any help would... Help! I have been really ill for a long while now and my husband works out of state for months n months. I need to be closer to friends n family so I can get help with my three small children until I am able to get better. we live very far from family, on 40 acres out in the country. Its beautiful & 6 miles from loaf n jug n walmart. But I seriously need to be closer to someone that can help me. :/