I'm going through Wachovia, they are offering me an FHA loan at 5.25% (5.88% APR).

We can afford the monthly payments with no problem. The down payment / closing costs are proving to be a little trickier, but we think we've got a good handle on that too.

I'd be pleased to learn what you know about the tax credit. We've already talked about it a bit, it looks like it will be a nice amount next year! But now I have to start itemizing for the first time.