<prompt> Human: I am currently spending 750month on rent, and recently started looking for a new place to live with a new roommate. We are looking at places in the 950-1050month range. I was speaking with another person about this, and the ridiculous rental rates in my area. They said they just bought their house this past year, and their mortgage is under 300month.So I did some looking, and there are quite a few fixer uppers in my area 3br homes under 75,000 and Zillow is showing that potential mortgages are in the 200-400month range.Now, with this kind of mortgage, cutting my monthly Rent in half, AND having a roommate that pays rent is VERY appealing. However my credit is shit. The person I was talking to said that with FHA loans, and depending on the housesforeclosures and the neighborhood, that credit doesnt matter. Is this true, and what kind of loanswhere can I look for more info?Ive already filled out a contact form for the mortgage company this guy used, and I hope to speak with someone tomorrow. But Id like to have my ducks in a row here.  <response>: As someone whos about to close on a townhouse this week, Ill run through some numbers of my purchase to give you an idea of what youre probably looking at.First, I havent really found a calculator online that has been 100 accurate and I was fooled pretty early on because a lot of the calculators online only show principal and interest, so theyre leaving things out like property tax, homeowners insurance, and PMI. Not to mention, most of them default to assuming youre putting 20 down.Im buying a townhouse for 110k. Im putting 3.5 down and got an interest rate of 3.365. My property taxes in my city are 0.95 and my homeowners insurance is 701yr. The seller is contributing up to 3.5 of the selling price to closing costs which should cover most, if not all of them. With everything included, my mortgage should be 752mo.I know loans dont work this way, but if you divide out my dollars in mortgage by the purchase price, Im paying about 7.07 per month for every thousand dollars borrowed. Just multiplying that by the 75k range youre looking in, youre probably looking at a mortgage of roughly 530. Thats still pretty great, but it makes Zillows numbers look sort of misleading.All of that said, take this with a grain of salt. Im probably in a different state and as a first time home buyer, Im sure I dont know the ins-and-outs of mortgages like some of the people here. Theyd probably be able to shoot some holes in this info. 