Not sure about your area, but I was able to buy my first home this past September with nothing down and the buyer picking up the closing costs. It's possible in Nashville, anyway.
Spend a little time talking to a realtor in the area and see what options are available to you. My situation was similar to yours in that I cared less about the overall price of the home and I was more concerned about a specific monthly figure I had in mind. The market may have fizzled a little bit, but I imagine there are still plenty of ways to get you into a home.
