Sell your soul to buy a home!

There are places in America where houses are much cheaper than $500,000. In fact, where I live in Oregon, I see new 3-bedroom homes offered for $200,000 and less all the time and older homes for far less. Why don't you consider moving to a less expensive area?

I agree with you. You really cant find anything decent out there without paying your arm and leg for it. We're looking for a house too. We need something with a back yard for our three dogs. But first we have to refinance this house so we can rent it out. But even to refinance cost you a bundle, which is sad cuz thats why you are try to refinance in the first place is to get a better rate. But it seems like for the average person you cant qualify for anything better. It feel like everyone is trying to take advantage of you these days. saving up could take for ever and once someone finds out how much you have, they try to take every bit of it and then some. I dont think geting a house should be this hard, But unfortunately, it is.

Talk to a mortgage broker to work the situation backwards. First, you and your family need to put together a budget including all the expenses involved in homeownership. When you've got that together, you'll know how much you can afford to pay for a monthly payment. A mortgage broker will find what rate and program you qualify for. Using this, he can determine how much house you could afford. There are very flexible mortgage programs out there to lower your payments. In your situation, I'd stay away from anything that baloons. However, they've come out with 40 and even 50-year mortgages to keep up with this incredible housing market. Those programs may get your payment down but you won't know unless you talk to someone. Once you know what you can afford, you can talk to a Realtor to find out if any house like that exists. Sometimes they happen upon a diamond in the rough. Best of luck!