[quote=carlsbadworker]. . . Second, I actually think $250K down for a $400K house is a bad idea…no matter how low you want the payment to be. The real risk for home purchasing is liquidity that many people drained out their savings with the down payment that makes them less well prepared for the future uncertainty. I wouldn’t invest bulk of your saving on an investment vehicle that only carries less than 3.5% return (not counting mortgage interest deduction). I would take conventional 80% loan and save the money for emergency fund and future investment opportunity (although there are depressingly few such opportunities right now) . . . [/quote]I agree with this, carlsbad worker. But with just $50-$60K annual income for a family of soon-to-be 4, the OP and her spouse are not going to be able to qualify for an 80% LTV conventional loan. At least not one which would allow them to buy a single family residence in SD Co, CA.
