It shouldn't be an issue at all, lower priced homes are selling quickly in the City of Buffalo, Riverside, West Side, and the East Side. Banks have been much more agreeable with terms, in regards to these lower cost properties, since they carry less risk. Have you contacted a mortgage broker yet? They should be able to give you a good idea if you can be Pre-Qualified for a home purchase. Also checkout Homefront in Western New York works in conjunction with First Niagara and M & T Bank. They have a first time home club that matches your deposits if you stay in the program. If you complete it they match it at 4 to 1 margin. It all goes to your closing cost's. The program can vary from 10-12 month's, in case you were looking to move quickly.
I also included a link for Homefront for you to check out. If you have any questions feel free to contact me.
Licensed Real Estate Associate
Keller Williams Realty
Web Reference: http://www.homefrontbflo.org/financial/index.php?id=13