The fact that you are looking ot hold it for only 5 years is what leans me towards suggesting you rent.
The market isn’t likely to spike up significantly in the near term, and when you sell you have some serious transaction costs… You might end up with negative equity and have to bring cash to the table at closing in 5 years…. or at least see your initial down payment turn into selling commission 5 years down the road.
I’ll say it again – consider renting, and save, build that downpayment up to closer to the 20% level, pay down any debt you have and improve the credit scores.
This is what I would do if I were in your shoes. Heck, this is what I did do years ago… waited till I had the resources to put 20% down before purchasing… 2 weeks after my 30th birthday.
