Bill,
$59,500 for a Single Family home is a great bargain by the Washington, D.C. cost of living index....

In Leesburg, Virginia, in 2008-2009, 20yr+ homes in need of TLC start at $200K.
$250K might buy a small, but reasonably nice home.
Newer end-unit TH start at $250K as well.

Kevin needs to think hard about his options and his comfort level as to financing etc.

His goal should be not just to purchase the house, but also to be able to KEEP it.

Kevin,

It's all about opportunity.......................

Perhaps this will help...we just closed a deal where the buyer purchased a 2001 constructed home, 3/2/2, move in condition for $59,500. With his 10% deposit his monthly mortgage is going to be a little more than $300.

Granted this is an exceptional deal but this is the market for you to make your exceptional deal also. Consider looking at foreclosures and working with a real estate professional that knows your target location well.

It's out there but it's a matter of finding it....................so get started!

Good luck

Kevin,
In all honesty, it is somewhat risky..... It is POSSIBLE, but risky.
Would you consider RENTING OUTpart of your home, so that you can enjoy the benefits of the homeownership, but NOT be overwhelmed by the mortgage payments and other costs associated with it?

Once you are a homeowner, you should have an EMEGENCY fund for those unexpected maintenance situations: roof, boiler, furnace, A/C, etc. In addition to that, you should have at least 6-12 months worth of savings to cover living expenses - just in case you loose a job or get ill. You need a plan A and plan B for those "what if" situations.

Since you are a first time home buyer, getteing FHA financing should not be a problem, as long as you have the required 3.5% downpayment and a documented, stable income. FHA loans do not take to consideration credit ratings, only stable income. Also, FHA loans allow Seller subsidy.

I am an Accredited Buyer Representative and enjoy working with first-time home buyers, so do send me an e-mail and together we'll find you (hopefully, no promise) a nice small SF home.
I offer FREE Loan Pre-Qualification for my clients, however you can use a lender of your own choice.

Hi Kevin,

Yes, talking with a lender is the first step. All lenders will meet with you no obligation, although you may be most comfortable talking with your own bank first. I can certainly give you the names of 2 great lenders my team works with who always get high marks from our clients. The lender will look not only at your salary, but at any debts you are carrying (called your 'debt to income' ratio) to determine what you qualify for. Additionally, you'll likely need cash for a 3% downpayment. You will not be able to roll your truck pay't into the mortgage.
Its tough to find a single family home in Leesburg for under $250,000. I'm not sure where your commute takes you, but I'd advise looking farther west if possible, or re considering a TH/condo. I myself have moved to Lovettsville to be able to buy what I wanted.

I think you should check with a lender to go over the details of your finances, and then start to check out what is available in your price range to see if you are interested in those properties. I'd be happy to set you up on an email program that emails you properties within your rough criteria so you can check out what's out there for the money.

Hope that helped some!

Those are all great questions Kevin. The 1st person you need to talk to is the loan officer who can answer the financing part of your questions. Then you need to talk to a REALTOR who can tell you what type of property your money will get you. Shoot me an email and I'd be happy to give you the contact information for a great lender.