[RJB1180]

I disagree with others here. Buy the house now, many banks have 1st time/ low income mortagges at great rates. Try Hudson City savings bank.

Have a realtor provide you with a comp. analyst to find out the estimated value. Then use the equity above the selling price as a gift from your mother for the 20% dnpymt to avoid PMI.

ex.

Value = 60k
Mortage = 43 k 72% ltv
Gift of Equity = 17k 28% or
Selling Price = 53,750 for a 10,750 gift of 20% equity to avoid PMI.

Also any gift above the yearly exemption is still exempt upto 1 Million dollars for a lifetime, just need to file form with taxes.

My wife and I bought our house this way and it worked great, I would also suggest using a lawyer, as state to state rules may vary