I won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.

I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.