Depending on their credit scores and income, they may qualify for a loan on a house that expensive. But, if they have too high of a debt-to-income ratio, they wouldn't qualify for much of a loan. Also, they would have to come up with about $20,000 cash for a down payment, more if they want to get the loan to value ratio down to 80% and avoid paying PMI (mortgage insurance). Not to mention several thousand dollars in savings that they can tap into if they lose their jobs or something (the bank will require them to have a certain amount of savings set aside to approve the loan). Also, depending on where they're looking to buy, $200K may only get them a condo or townhouse. So, they'll probably also have HOA dues to consider of around a couple hundred dollars a month. And, that would affect how much of a mortgage they could afford. The first thing they should do is go to a lender or mortgage broker and get pre qualified for a loan. This will tell them how much they can afford with their current income/debt situation, and they'll know their price range. They can then see what kinds of properties are available to them. And, they'll know how much a month it will cost them to purchase such a home.