You are actually asking 2 questions.
What you can qualify for (the amount that the bank will give you)
and what you can actually afford.
banks will give you up to 32% of your gross income to be used for a mortgage.
In fact VA will go up to 40%.
This means that under a VA loan,
you could actually have a monthly payment of $1,766 a month.
I highly suggest that you don`t spend more then 25% MAX of your gross monthly income for your total payment.
12 months = 4,420 a month
.25% = 1,104 for your total payment
270 (for taxes,
= 834 for the loan
at 6% 30 year fixed rate you could get a 140,000 to 150,000 mortgage.
Add your down payment to this.
If doing FHA,
you need 3% or 4,500.
This means you should be looking at homes priced in the 155,000 MAX range (or less!!!).
You will also need closing costs of around 3,500 (unless you can get the seller to pay).
Total cash needed is 4,500 to 8,000.
You don`t want to be house poor.
You NEED to be saving at least 10% of your gross income.
This means that you should be saving around 500 a month.
DON`T BE HOUSE POOR.