Second Mortgage? Is that a wise thing to do?

NO ,this is NOT a god deal you would be in debt and have two mortgages on your home, asking for financial disaster. The housing market does not have enough of qualified home buyers. Go to your bank and see what you would qualify there.There are many programs for First time home buyers, and yes you can use more then one program to buy your home.In rare sales you could receive money back from the purchase of a home. For your down payment and closing cost ask the sellers to pay them for you, this is a small price to pay to have a house sold. Do not let your realtor or salesmen try to talk you into buying a home that is out of your price range and they do this just by showing you a home that is bigger and more expensive, have seen it done all the time, realtors work on commission only so the more a house sells for the more money they make. Do buy enough of a home to grow into, you can not change the square footage of a home, one with plenty of storage room. Also in a good school district gives you added value to your home and is a great when you go to sell the home. You can qualify for a FHA home loan with a credit score of 620 or 640 depending on your lender. But at only one mortgage at a time you want to be able to afford your home and not be house poor. Enjoy your new home.