Are you or your spouse veterans? There are low cost veterans loans. Many states--and cities too--also have low rate loans for low/middle income folks who buy older homes in designated areas of the city. We have bought four houses over the years; one with a vet loan, one with a state loan, and one with property we can rent out. Our current place had an additonal 2 bedroom apartment, and a 2 room plus bath apartment. The rental income helps cover the mortgage. The most important advice I can give---BUY SOMETHING CHEAPER THAN THE AMOUNT OF MORTGAGE YOU ARE APPROVED FOR. This will enable you to pay off the place early--we paid off our 30 year mortage in 12 years. Of course, relatives berate us for buying an older place, but its beautiful and we love the neighborhood.
If you want to live in the suburbs or want a new place, this will not work. Our kids can walk to school, we can walk to church and other activities, and there is mass transit so we can save on the ever-expensive gas. We've got a six bedroom place! Neither my husband nor I was very handy when we bought our first home, but we have learned. The down side is that there is little parking--we do have a small garage, but our 15 passanger van doesn't fit in it, and I would love to have a garden but that won't happen.
Good luck
GG

There are often options that you don't know are out there for housing. Unemployment though, is a stopper to purchasing. And for six months after you get a job! I would not want to even attempt to buy when employment is a question, just because you don't know where a job might take you.

With just four kids though, you have some options that are not available to larger families. While you might not qualify for Habitat for Humanity, you would qualify for low income housing (they take into account income changes) - not a place you want to have to stay long term, but a possible solution to get you through.

We've been in situations where we needed housing in difficult circumstances, more than once. The solution was to start looking, to look where others did not, and to consider things from a creative standpoint. The house we are in now is not one we would have chosen - we've been here for 8 years though, and will own it outright in two more years. We got an owner-financed mortgage, and a house that was at least big enough to hold us all, at a time when we could not qualify for financing due to our family size and recent job change.

Laura
Mom to Eight

Thanks for the suggestions. I was able to secure a seasonal tax office job. So, we put the condo up for sale and if it sells we are going to rent until we can buy. We are so stuck because of all the services in our County due to my sons autism. Plus the school district is one of the best for his condition, plus all his therapies are out this way. Our home kinda revolves around him....Oh Yeah and we definitely are going to decide on a payment and NOT go with the maxed finance amount unless it drops considerably...my hubs is union so they average his income and so it is lower than what we can really afford (while he is working at least)...We try not to buy anything on credit period...I will keep you posted!!

Hubs is still laid off. I am still working thankfully. Had one showing they said it was "too small" it's Like "yeah, we know" Imagine now with #5 on the way how much smaller it will feel and how much harder it will be to show it. So frustrated.