I will not comment on whether you should or should not buy but I will say that obtaining financing with 10% down is not a problem at all. As sdr said FHA and VA options are plentiful as well. Note with an FHA or VA you may run into sellers who are reticent to work with you, especially short sales and reo because of requirements that certain repairs must be made to execute those loans.

However if your income can be verified and everything is on the up and up, getting financing is not a problem at all.

Now finding a home you want with this pathetic inventory, that is a big problem.