We are going to take the plunge and buy. We have sold our current home in 5 days…no kidding at full price. We will net out $350,000.00+ and we are pre-approved for a conforming loan at $546,000.00 with the high mello-roos, etc. I hear everyone talk about renting, and believe me you have some valuable points. We have just reached the point that we want a nicer house, bigger lot, and we plan on staying for a long time. The OP needs to sell the current house and plunk down the cash, get a conforming loan, and move on.
Localguy