[quote=UCguy]Sigh….
It seems to make more sense to wait at least 2 more years maybe 3 tops….until so we can put 20% (and be under 417K).

That is how I am thinking of a middle ground compromise.

How I will come up with that 20%: well, I want to have some cash on hand so I will probably borrow 5% from 401k (30K), preferably from less riskier one (the 403b0, AND make sure I have AT LEAST THAT MUCH left in cash, if not more. So, I need to save ~50K or 25K a year.

We have already reduced the 403b contribution to a minimum (because of no more matching in UCSD), on the other hand I will continue to contribute to my 401k 6% (the company will match 3%) – so I won’t max it out anymore.

The upside of this wait is that in a couple of years it would be hopefully a more normal market, with tighter rules, and lower home prices…I never thought it would take this long though, so who knows how long this still has to unfold….[/quote]

I agree with this decision, it is like jstoesz said; if people that can afford to get in at 550K (but its a huge stretch) stop buying the most house they can afford prices will come down. Not too many households making close to 200k so prices are likely to keep sliding I believe. Wishing you and the piggs who have bought nothing but the best. Your kids and friends will probably enjoy you more as parents not being financially rung.