do not go with your first mortgage offered to you. i suggest you shop around at least 3 different lenders cause some lenders try to trick you and rip you off so their brokers get commission. a ~70k income (combined husband and wife) can get you a ~180-220k home from what i know.

or you can do a 'stated' income if you are self employed and cant prove your income and buy an even bigger house as long as you can make the payments.

 

Typical mortgage loans require 20% down payment (max 80% LTV). Any down payment less than that you will be required to get PMI (mortgage insurance) which ranges from an additional $150-$250 a month depending on the amount of the loan. In my opinion, mortgage insurance is just like throwing money away. If you can't afford to put down 20%, then save up for another year or so. As for monthly payments, your mortgage cannot be more than 35%-50% of your gross income, depending on how much you borrow and what kind of house you are purchasing.