I just closed a condo in Rancho Santa Margarita and needless to say, the guy was a teacher! He used a direct lender that I recommended to him and we were able to find him something that he absolutely loved. There's no reason we can't find you something in Mission Viejo as well. The prices are very similar for condos and they both have great city amenities (Lakes, beach club, gold courses)
Like the other agents mentioned, with rates as low as they are, and the different incentives out there, when there's a will, there's a way.
You need to speak to someone about preapproval first to see how much you can afford. You'll want an aggressive agent who will work for you to find you exactly and as quickly as possible, your dream home.
If you're interested in speaking with me, you can call or email, and I'd be happy to give you the name of my lender who I've referred plenty of clients too. I can also set you up with a program that'll send you reports daily of all activity that happens on the MLS, so you can see as soon as a property comes on the market.
Either way, I wish you best of luck, it is possible.