I found a house.

It is 6 years old, corner lot, zero lot line, single story, 3 bedroom, 2 bath, 2 car garage alley-way house in one of the communities I wanted to live in. I want a zero lot line house because I really don't want to worry about yard work.

There is a small front and side yard (in front of house is 3 feet wide by length of house, about 20 feet, it is a very small yard!) HOA fees are $32 a month (pays community lighting and watering of two parks in area).

PITI payment would be about 23% gross, 30% net. I have a friend and colleague (different area of the department I work in) who wants to move out of the house she has been sharing and wants to downsize to one room. Offered $400 a month and part of utilities which would be amazing. I would take her because she is in her mid 50's, going back to school to complete her BA, and goes away every third weekend to visit her adult kids about an hour away.

I can afford the house without a room mate, her rent would just be more I would use to pay off the house.

I am trying to figure out the Calpers loan process because colleagues have said it saved them money in the end. Of course, it is a weekend, the house just came on the market and this model (single story) in the community sells very quickly.

I just don't know what to do. I have wanted to be in my own home for several years, and here is my preferred house design, two miles from my office!

It would be a conventional loan as the FHA loans now have that PMI that is permanent. Have a percentage to put down, not as much as I wanted but with a room mate I would make up the difference.

Thoughts? Things to consider? Tax ramifications of buying a house? What can I write off in the first year (e.g. 2013 taxes)?

Comments welcome.

(and does anyone know what is going on with the "" things on the web page?? it is driving me nuts for the past couple of weeks.)