Thanks for the replies evolusd and danielwis. The idea of economic stress is what is making us rethink this. We don’t want to buy solely for the tax credit if it doesn’t make sense for us right now. And the upfront costs associated with an FHA loan (which is the only one we can get right now) are a put-off too. We have been working with an agent and her idea is that it is good to buy now because of the low interest rates and “relatively” low house prices. Should we hold off on buying until we can go for a conventional loan and avoid PMI? Do we risk higher interest rates and not so good prices later? Again give it to us straight, we can take it!
