FHA is many of the things you mentioned, it’s also excellent for first time homebuyers.

There are also limits on the homes. For example, in our area the limit is $479,000.

With our lender PMI was 11 years or 11% of the home was paid off. whichever comes first.

You can also check with any mortgage broker. They will shop around and find you some of the best loans out there.

Look into an FHA loan for a lower interest rate. Our home was 400k and we got a killer interest rate. So escrowed our mortgage is 2050 with about $40k down.

We make $13k monthly gross…we have a big family and didn’t find the mortgage painful. We worked hard on clearing any consumer debt, and now only have vehicle payments and student loans.

Child care in the future is such a tossup. It largely depends on your area. It used to cost me $750 a month in one town and then we moved and it’s estimated here at $2000 a month. I know people will tell you to be prepared, but you really can’t until you find out you were having a baby and research the options and your areas. They can drastically differ from place to place.

$3300 for us with kids would have been tight a year or two ago. That mortgage without kids may not be too bad.

I would focus on trying to get the lowest interest rate possible. look into an FHA, perhaps even what you want might be in a USDA zone. If a lower interest rate is not possible, definitely throw whatever chunk you can at a down payment and save for closing costs. It will make a difference over time, and in the equity of your home.