Thanks for the answers, Mim. :) I really am not sure why I asked this question since the obvious answer is that we need more time to save. I have been out of school since August and am seeking entrance to grad school (full-time online enrollment) either for Spring or Fall (looking more like Fall at this point since I have been SO busy with work, which I plan to continue while I take classes).

We have not gone out to eat in months and I pack a cheap lunch every day, as does my fiance. We do not have Cable TV, only our cell phones on the cheapest plan we can get, etc. He can't carpool as none of his co-workers live in the area. I don't carpool because I am a social worker with a very individualized schedule, so there's often no one heading the same way I am. Thankfully my clients are all within a few miles of the house so I can walk or bike in better weather. We are on a very tight budget and don't spend much outside of bills.

Even doing all this, we somehow can not manage to put something away in savings, though we have been living simply in an attempt to save up since we moved in together 2 years ago. Our debts have resisted all attempts to pay them off due to job losses and increasing rent, and it's quite frustrating now that we are both working to still not see us making a dent. I did check with HUD. Their online calculator shows that we have a very high debt to income ratio which would make us not applicable for any loan programs at this time. It could probably be worked around as without my student loan debt (which could be deferred if I go back into school full time) we could qualify for a very small loan, but it could be September before I know whether I got into the fall programs and get my loans deferred again and in the meantime we are losing our apartment in July.

Does anyone know a good site to find houses for rent (not townhouses or condos - we are SICK of upstairs/downstairs/one-wall-away neighbors!) for reasonable rates in the greater Pittsburgh area?

Dawn
Hud & FHA are certainly good possibilities for you to check. You don't say how long you have been out of school , or how long you have been saving up for a downpayment, but knowing that it is something that takes some perseverence-- for everyone!-- may help. Start now to plan and budget for that goal in the future!!

Here is some advice that you may find helpful for the long haul: Look critically at the expenses you have. We all have to make decisions about sacrificing one thing in order to afford another. How important is owning a home to you?

Here are some places that you may be able to save:
1) Are you packing a lunch from home? Or buying out every/most days?(savings: $3-7/day, X 5 days X 52 weeks = $750 to$2,000/ year for a down payment). and what about the corner coffee shop stop, or sodas?
2) Media expenses: Premium Cable Service? Multiple phones? Wi-Fi? (Savings: $50-75/mo x 12= $600-900)
3) Carpooling?--Less convenience, but if you want to afford a house of your own.... it can save some bucks!
4) PAY OFF YOUR DEBT!! especially credit card, high interest debt., and start saving.
We often get so used to what the TV and magazine ads tell us 'everybody else' is buying that we fall into the trap of spending more than we earn. There was an old Saturday Night Live skit that touts the rule "If you don't have it , don't spend it!!" It really is the way to go.

I have helped many first time home buyers get into a home of their own, and I know these are principals that work.
Hope that helps.

Why guess? Home ownership is more accessible today then ever. The terms of the loan program you qualify for will make the difference if you rent or buy. You can get a free consultation for a government loan program with HUD and FHA. These government funded agencies are making homeownership possible with easier qualifing.