patrick.net

It's different for everyone is my guess.

Do you have a family?
Do you plan to have a family?
Is your job stable, or are you likely to need to move?
If you switch jobs every 3-4 years, what other cities can you reach from your "home", without going insane?

I don't have a family of my own. I still live with my folks and am ready to purchase any time. I will take them with me however. I can't leave them alone.

Job is stable but I am searching for other opportunities. And I guess I can reach many cities without going insane.

Alot of the houses they post for "first time home buyers", it sure is asking for ALOT of compromise. The ones I refer to are usually shacks listed for prices of houses.

First time home buyers would do well to rent until real estate bottoms, in my view. True real estate values are still virtually in limbo in many areas and mortgage paper is too scary for many investors who got burned in the bubble, making money less available.
There seems to be no appreciation happening. Even movie stars are losing their second and third homes and can't refinance.
It doesn't make sense to buy while prices are not on the rise.
Less jobs because of the recession, tighter credit standards, an aging and retiring population, all do not bode well for home ownership. I know two companies in business for many years, who gave up their franchises, Century 21 and Prudential, because they could not afford the franchise fees in this downturn.
We are in uncharted waters.

Sounds like you need more than a first time purchaser. You've got a family you're pulling along with you. Which requires additional space and what not.

I think SFace is dead on with this one. It means you've got to start somewhere, here is something you can work with until you've got enough money to upgrade.