insert teeth-gnashing here

[Beestie]

Quickly, some thoughts -

Your downpayment is too small - you really need to make at least a 10% dnpmt and couple that with an 80% first and a 10% 2nd. Never get a first of more than 80% since that automatically triggers PMI. Never, ever pay PMI (private mortgage insurance - it is a shameful racket). If you can't put up 10%, shop for something less expensive - commute and price are usually inversely proportional.

Wait till you don't have a car payment if you must.

Buy a house that you can rent out the basement AFTER you fix it up. Usually, the basement can pay 1/3 of the mortgage,

So, move further out, rent out the basement and lastly, increase your deduductions from your withholding to increase your takehome pay AFTER discussing with an acct how not to overdo it. Renter pays a third, gumit pays a third, and you pay a third.

Homebuying is not as hard as it seems. Find a good realtor - honestly, the older ones are more patient and more helpful usually - and will help you though the confusion. Buy a house if at all possible. We may never see interest rates this low again. Its worth making some other sacrifices.