You will generally need a 620 credit score or higher, but it is best to speak with a qualified loan officer to find out for sure exactly how much of a loan you qualify for. Keep in mind the costs associated with buying a home also:
1. Appraisal fee - $350 - $450
2. Earnest Money - $500 - $1000
3. Due Diligence Fee - $250 - $500
4. Mortgage loan down payment - For an FHA loan, only 3.5% of loan amount.
You always want to have a full home inspection, termite inspection and even a Radon test once you have the home under contract, but those fees (approximately $400 -$500) can be paid for by the seller. When I work with home buyers, I always get the sellers to pay for at least most of by buyer's closing costs, so the cost of their inspections ends up being paid for by the seller. And of course, the sellers always pay all real estate commissions, so do hire a Realtor as your buyer agent and take advantage of their free services.