Welcome to Cute!
I purchased a used machine from a dealer. That is what I would recommend you do. I bought a cheaper but a new embroidery machine originally. I like my used but much nicer machine a LOT better.

I agree it will need to be a used machine. Check with every dealer you can find in your area and test stitch to find what you need. Dealers will give you tech support and stand by their machines.

If you want a 5x7 take a look at Brother pe 770-about 600 dollars,if you go 6x10 or bigger hoops the price does go up

You might also see if the dealers can give you discounts on their floor machines. Also agree about previously loved machines that have been traded in on newer models. Let us know what machine you get.

I bought a traded in Bernina 340 for $499 (list price $1300.) I went to the Bernina dealership and told them I had a $500 budget, was willing to leave them my name/phone number if anything was traded in that met my requirements, and they happened to have a traded-in current Bernina embroidery machine that they were using as a floor model. The sales clerk asked the owner if he could do $499 for it, and the deal was sealed. They included 2 years of service for free, in case it had some unknown problem. I've had at least 500 dollars worth of fun with it in the last 3 years.
Joann