Talking about reserve, how’s your relationship with your parents and extended family. I don’t know about others, but my family (including aunts & uncles) is pretty tight and if one of us in financial trouble/need due to job loss or needing a down payment, we all would gladly chip in (what we can) and help that person out w/out expecting that money back for at least several years. Maybe that’s an exception more than the rule, but it does change the playing field a little bit if your family relationship is similar.
It would be better if you buy w/ 20% down and having at least 6-12 months in reserve, but everyone have different risk tolerance. Some would put 40-50% down and 2-3 years reserve while others would only put down 3.5% and only have 6 months reserve. Everyone is different and only you would know what would be comfortable for you. There are MANY variables in buying a house and financing it, so, we all can only give you advice on a few of those variables.
