a) I’d RENT if the sales price is >750k. Many believe the price will continue to go down in this price range
b) 20% DOWN. You say you have great jobs and can pay down the loan quickly. Why not avoid the large hit for FHA, keep monthly costs down, and save up quickly for your two car garage.
c) FHA. If you are going to live there for only a few years. This way the FHA hits won’t hurt so bad, plus you can walk if it goes down in value by a large amount.