I say educate your wife on 1) what you can actually qualify for with that income and down payment, 2) what that will buy you in today’s market, 3) that you should buy less than that to have some protection against the falling knife, and 4) that if she really wants more house than that, you should indeed rent “more” house until prices come down even more and your income goes up so you can get close to her dream home. She should see the logic in that and agree with you and you should be fine.
If for some reason she still insists despite logic, then I am with those who said you should tell her to go get her own $100k job or better.
