First of congratulations US Returnee and family. I have to agree with Vhotee here. I don't think it will be a sound financial decision to get 400K house, sounds little bit expensive for 80K salary. but i guess it would also matter as to how much you have for downpayment.

Having a house adds additional costs such as HOA fees, maintenance, more bills for utilities, garbage, electricity etc. Plus when you buy a house you automatically tend to go get more stuffs to fill your house :) hehehe like furnitures, electronics etc..

so think hard. write all the expenses you can think of for owing a house. do the maths and it will help you. we did the same ...keeping track of our income and expenses for more than a year on monthly basis before getting our first house and it helped us a lot to find out exactly how much we could afford.

well good luck with your decision!