Before you start looking at homes, you will want to get a pre-approval for a mortgage with a lender and find a loan program that will work for you. There are a ton of first-time buyer programs out there. I just bought my first house 9 months ago through a USDA loan and didn't even need a down payment. The seller also paid all of my closing costs. In fact, I even got some money back at closing. The only thing with USDA loans is that the property needs to be located in a USDA approved area, usual rural. There are also FHA loans that have low down payments, usually 3% of the purchase price. Also, you will need to have money set aside for the appraisal and inspection. Good luck!

Usually you can get an FHA loan for first time homebuyers (depending on price range) which has better terms for for the home buyer and a lower down payment than conventional loans. Be sure to tell your mortgage company and Realtor that you are 1st time homebuyers. If you need referrals, let me know. There is also an $8,000 tax credit for first time homebuyers that they can take on this year's taxes or next (But you will have to close on the home by the time your tax return is due to qualify for this year - check with your tax professional on exact dates) for buying a home by Dec. 2009. Rates are also at a historical 40-year low. You can, depending on credit obviously, get a 4.5% 30 year fixed rate. If you or your spouse is a teacher, firefighter, police officer, etc. - what they call heroes - there is a possibility you can get a grant from your city to help with your down payment. (You never have to repay the grant.)

Also many counties have first time home buyer programs. If you attend their classes on buying a home and finances they will assist you with a down payment.

hope this helps...

There is a credit of up to 8,000 for first time home buyers which is good till December 1st of this year so if you are wanting to take advantage of these credit I would start looking for a house right now, but again you still have to have good credit. Is 1,000 for every 10,000 you spend up to 80,000 and anything over will be still 8,000

right now its a buyers market, so i would look for a home now....

I agree with TheZ. Now is a great time to buy a home. But do it because you're financially ready to buy a home, not because of any tax credits or anything like that. Just make sure you're ready for that responsibility. Don't buy one because everyone says its a great time to buy. Buy one because you're ready to buy one.