YES! Too much. Go to a basic payment calculator and figure out your payments. Keep in mind that they usually are not figuring in taxes, insurance and any association dues and utilities. So, for a $400 purchase, even with 20% down, you'll see that your principal and interest payment alone is roughly $2,000. Jared's advice was online. Knock the purchase price in half and put 20% down and your p & i is down to $1,000 a month. Once you add your other expenses in, you'll probably come up with something you can live with. Get a good Realtor who is mindful that you want to be able to eat something besides ramen noodles.