Based on your income alone, your MAX mortgage amount would be around $145K. It is correct that you can get in on a home/ condo for as little as 3.5% down payment. So, you find a place for $150K- you need to come up with $5250 down payment. Closing costs is a different animal, and would usually run you between $3000- $4000 or so. However, the seller can pay for up to 6% of your closing costs- so you could be all set with that end.
There are some great deals around, for sure. Plus you get the $8000 IRS tax credit. If you'd like to talk with and work with a local lender, please let me know. We are the largest mortgage lender in Massachusetts, with about 20 branches. I'd be happy to speak with you.
Thanks, and good luck,
Now is a great time to buy with the low rates and the first time buyer credit. Even with only the one income I'm sure you can qualify for a loan in the range you are looking in. In fact, there are many properties in the area that you would be able to get into. If you would like to meet to discuss your options and the home buying process I am a local agent and would love to meet you! Feel free to call or email me anytime!
Bob gave you alot of information. I suggest contacting a lender to see your exact option. It does sound like you have some type before you buy, so contacting a lender will give you a game plan and give you a course of action to owning a home.