Make certain you can afford the mortgage on your home. Go to an online mortgage calculator and enter the price of the home you want. Your final expense is going to be closing costs. This is the result of title fees, realtor fees, loan origination fees and other lender related fees. This will be needed at closing along with your down payment. 1600 then go for it. PMI is of no benefit to you, only your lender. Shop around for a loan. This will mean hundreds of dollars a month in savings. Needless to say its too long to post here. Local Home Buying Programs in each state. There is a whole bunch more but these should carry you over until you can get more knowledge for asking more specific questions.

80k range looks about right. They are a great place to start figuring out what you can afford, before contacting mortgage companies. Keep in mind that many calculators will only return your monthly mortgage amount.

These expenses can add hundreds a month to your mortgage, so plan carefully.

And of course, you have to plan ahead for many homeowner related expenses such as utilities, repairs, etc. Make sure you add these to your monthly budget. Also, have a good idea how long you are expecting to live in your home. This can help you decide whether a fixed rate or an adjustable rate mortgage may be best for you.

If you plan on moving in less than 10 years, an adjustable rate mortgage may save you money.

But talk to a trusted mortgage professional. They will be able to give you a full financial analysis and let you know what loan suits your situation best. Get your credit report and determine why your credit isnt very good. Not only will it help your interest rate later, it might be the difference in getting a loan or not. This is probably your very first step. Determine how much you can afford to pay in a month. There are some guidelines on this. The rule of thumb is to have a mortgage maximum of 2x to 3x your annual salary. Homeowners insurance is pretty reasonable though as are prices. One of these two ratios will limit how much you can borrow. The big factors in your mortgage payment are the amount you borrow and the interest rate.

You say you dont have very good credit which means you arent a very good risk and you will pay more for a loan assuming you can even get one. FULL of useful info for first time home buyers, just start looking and youll find tons of great info.