Quote Originally Posted by BushMasterBoy View Post
I'd buy something less than $200K. Lots of foreclosures the banks are trying to get off their books. If you are a veteran, it is easy to get a VA backed mortgage. Alot of houses require a 20% down now. I paid $130K for my house in 2006. Brand new house on a acre. Last month a house on the same block, same size and age was listed for $89K. If I lived in the metro area, I'd buy a house west in the mountains, with a little land. Do you bank with a bank or a credit union? Ask them about any foreclosures they have on their books. $150K house with 20% down is $30k.
I'd buy a house where you can easily meet the payment. Being foreclosed upon can wreck your credit. As for building credit rating, make sure any defaulted credit cards and other bills outstanding get paid off.
A good point here. While most people out there are taking loans that are difficult to pay for two earners, I would recommend the exact opposite and only take on a mortgage that just one of you would be fine paying for your first home. Shit happens and it happens often. You can always jump up to a better house after a few years. Take your second income and save it for a down payment on your dream home.