Having 2 kids with another on the way is something that is both awesome and an awesome responsibility. If you did find that house that you really really did love, and would be there for many many years, then maybe, perhaps, I would say go for it. Iff you are POSITIVE about your income stream, and iff you ran the numbers to convince yourself that it would save you money over renting… and iff a few other things.
The problem though is that there are to many unknowns in the equation. While my intial post was less optimistic about 100% financing availability being around forever then Perry’s was I do agree with Perry that if your numbers are good, you should be able to find financing. Second, one of the most common events I see with buyers is the “this is the one syndrome”. Unless you have some very special requirements for the home you need, like land or something like that, then I think your patience will reward you in the long run. You may feel that this home you love for 500k is not replaceable but another one will come up… maybe not in a month or a year or two years but sometime one will.
Let me ask you this, how long has this 500k home been on the market? What did the seller pay for it? How much equity does the seller have in it?
Also while it would be nice to save 20% down, like you said that would take a long long time. Don’t try for the whole enchilada. Try to set a realistic goal. What if you made a goal of trying to save say 10-20k in the next 2 years? I know that even that is really tough with a student loan and daycare/preschool.
Anyways, without know much about the house you like, or the neighborhood, I cannot tell you if it is a good deal or not. However if you CAN rent on the same street and it is a comparable house, and that 2k a month is within your budget then I would jump all over it.
