If you buy a $40k house you can only get 10% or $4k back. The other $4k is not applicable as it is over the 10% of purchase cost. If you buy a $35k house you will only get $3.5k back.

Remember, closing costs add up.

http://www.bankrate.com/calculators.aspx?ec_id=Goog_ag_HV_MT…

http://www.bankrate.com/funnel/mortgages/mortgage-results.as… when I ran this it would cost right around $300 a month for a 15 year mortgage of $40,000. Try other lengths of time. Other amounts and see how it works for you. Remember, the more years the more you pay. The less years the higher your payment. Consider other lengths of time. you could get a 11 year, a 23 year, or a 9 year mortgage. Run the numbers until life expectancy and prices give their best fit for your needs.

I would say to consider the $4k cash back as a benefit if buying. Not a reason to buy or a downpayment. Good luck.

You may well be able to qualify to purchase a home, Stangcyn. However, the only way to know for sure is to speak with a reputable, established mortgage lender who can tell you whether you qualify for a mortgage loan, the amount you qualify for, and the price-range of the home you should be looking for. You can do all that over the phone.

I'll be glad to provide you with a list of reputable mortgage lenders whom I use for my clients on a regular basis. You only need to choose which of them suits you best.

It's a great time. Interest rates are really low, and the tax credit is available to first time buyers.

You can contact me via email, text or mobile phone at 770-337-5262.

Stangcyn,

It sounds very promising!

The only way to really know what's possible is to contact a lender and get pre-qualified. The you will know what price range to look in etc.

I would be happy to provide you with a list of reputable lenders to discuss your situation with.

Feel free to contact me anytime.

James Dudley
ERA Sunrise Realty
Office: 678-781-7418
Mobile: 678-449-8396
FAX: 678-689-1581 http://www.dudleydoright.wordpress.com http://www.trulia.com/profile/jamesdudley