<prompt> Human: As the title suggests I am looking at buying a house that theoretically would have about 45k of equity right off the bat. I am looking to keep the home for a good long while. This is a sale by owner purchase that has been very carefully negotiated. The home needs renovations however there is nothing that must be done right away they are all aesthetics. Lets get the particulars out of the way: 28 years old living in Colorado Income 93.7k Debt 0 all credit cards paid off at the end of every month Monthly expenses average 3k all combined includes rent Savings embarrassingly low 12k I do not have a 6 month fund I do not have retirement Credit score 760Lets just say I know I have made bad financial choices up to this point and I am trying to change that.I am looking at an FHA with 3.5 down and I want to refinance in 6 months with the goal of having 20 equity at that time. I could also wait and do a conventional loan with 5 down but that will take me another few months to get the funds together. I am worried about the interest rates going up possibly 2 times before I can get the funds together. I had my lender run the numbers and if I go 5 with a theoretical 18 point hike it would come to the same monthly payment less 56.00 a month as the FHA 3.5 right now. If it goes up twice it obviously will be more expensive to go conventional. This is going to blow away all my savings and raise my monthly costs by about 600.00 as I have a very reasonable housing cost currently.I am looking for all you personal finance redditers to show me what I am forgetting to think about. Also before you all tear into me for not having retirement started I am aware of how bad it is and I am actively working towards fixing the issue. The only reason I am thinking of forcing this purchase to go through is that I have a limited time period to take advantage of the under market value purchase price.  <response>: It would be extremely unwise to purchase this house given your current financial position.A 367k house, especially one that needs renovations, is well beyond the price range you should be looking at for your salary. With a 93.7k salary, your maximum budget should be around 280k.Also, why are you even thinking of buying ANY house with only 12k in the bank and zero retirement savings? You barely have a sufficient emergency fund as is. Wait until you have a 20 down payment and 5 for closing costs in addition to a 6-12 month emergeny fund. 