A few days ago I offered information on the Fannie Mae HomePath program. HUD/Fha and Freddie Mac offer similar progams. There are literally hundreds of thousands of homes that are owned by the Government right now and they would love to unload them. I suggest that you visit the following sites and have a look around. You may find a property of interest that could be bought with as little as a $100 down payment and fixed rate financing in the high 4% range. The HUD Homes website is to http://hudhomestore.com/HudHome/Index.aspx and you can visit the Freddie Mac website at http://homesteps.com/featuresearch.html
While it may be the case that price continue to decline a bit, no one in the mortgage business expects interest rates to stay where they are for much longer. This might be the time to pick up the phone and call your Realtor. If you don’t have a Realtor, get in touch with me an I will recommend a good one to you.