Any advise for a first time home buyer with fair credit?

Your mortgage is very small and you should not have any problem. I got mine from Wells Fargo Bank but for you I would say talk to your bank where you have your checking account.

I would recommend two options. First is one of the new versions of the FNMA MyCommunity loan. These loans have lenient credit criteria, and are available with 30, 35 and 40 year terms. They are even available with 10 year interest only periods. No down payment is required and the seller can pay 6% of the sales price to cover your closing costs. There are income limits based on the HUD median income for your area. The second option would be an FHA loan. These are excellent for people who have limited credit or fair credit. You should be able to get good interest rates on either. You should call a couple of different lenders to compare rates. Not all will have these programs and many will not rush to do a $50000 loan, but you should be able to find a source fairly quickly.

Depending on your credit score and income level, the best company varies. Right now the going rate for home loans is between 6 and 7%. If your credit score is below 650, go with what is called a "sub-prime lender" they specialize in lending to people who have so-so credit or maybe have never bought a house before. Long Beach Mortgage is a division of Washington Mutual and they are such a company. You can check out their website and also WaMu's website to learn more about first time homebuying.

See if there are any state-run loan programs where you are that can get you a lower interest rate. For example, in Pennsylvania there is the PA Housing Finance Agency, that can get you lower rates if you meet certain qualifications.

Shop around for several different lenders.

Look at closing costs, not just the interest rates.

Find out if they ever discount their interest rate or closing costs (e.g. if you also have a savings/checking account, have automatic bill pay to pay your mortgage, etc.)