Update: we found our dream home for an amazing price, and we are in contract. It's a foreclosure, and our close date is the beginning of June. We are following the DR plan by putting 10% down on a 15 year mortgage (and are within his income guidelines), and will have enough cash for closing costs. We are however, cashing in two small IRA's (penalty free for first time home buyers) to help, which obviously not DR approved, but we just couldn't pass this one up, and we'll have plenty of time for BS4 later. The house is perfect for us. Buying a foreclosure is very scary - the bank is just not rational and already running into all types of problems. I don't even want to go into them right now because I just get all worked up. We are now waiting to hear back on the appraisal, and I'm just praying that we will be able to close on time. This is truly the house for us, and I just keep telling myself that it is OURS. It will need some work (has been vacant for some time), and a ton of yard cleanup, but it is in livable condition, but we will just make a list and go through it one at a time until it's done.