Home Buying Advice

[Anonymous]

Hi All-

I need some advice since I'm not too familiar with home buying information.  I am currently debt free, but no savings (all went to paying off credit card).  My wife still owes around 10k on her credit cards.  My score is currently EQ 660.  Our combined income is around 130k (before tax).  I've been thinking about buying a home lately because of the low interest rate and foreclosures, and hearing about this $8000 tax credit for buying a home.  If my calculations are correct, we might have around $15k in saving by the end of the year.  My questions are:  Should I check out FHA to see what options I have (so I can buy a home before this year ends)? or should I wait until I have 20% down payment (meaning I have to wait another year or two)?  I've been hearing from friends that now it's the best time to buy, and that house prices might start going back up next year.  I live in the bay area in CA.  Any advice is appreciated. Thanks.

[medicgrrl]

It is really your personal preference.  FHA is a great program and would allow for your credit score.  Conventional financing is much stricter.  Rates are low and who knows what will happen in the next year or two with that or the first time homebuyers credit.  Also, you know how the Bay Area can be...up and down with housing prices.  You definitely don't want to buy when the market is overinflated there or you lose you shirt!!  None of us can really determine what the future holds.  I personally am planning on doing everything I can to take advantage of this market.