<prompt> Human: First time home buyer here. I live in a competitive real estate market and am currently looking to buy a home for 290k. My main issue is that I only have just over 20k in savings id be willing to put down after closing costs, appraisal, and inspections while still maintaining a small emergency fund which I would build back up to 3-4 months worth soon after the purchase. Im looking at a total monthly payment including pmi of 1800 a month. My girlfriend, who I live with now and will live in the house with me, will pay about 800 in rent to me, and Ill cover the rest. Right now Im able to save about 1700 a month without trying very hard with my portion of the rent being 650. So my renthouse payment would increase by about 350 and my savings would automatically decrease to 1350 per month. On top of that I understand that there are costs associated with homeownership that will dwarf my current bills and expenses. However, the house Im looking at seems to be in great condition with a small yard and brand new roof. I know there are no guarantees, but Im trying my best to purchase something low maintenance to help minimize costs. My take home pay is about 3700 a month, I dont have any student loan debt, credit card debt, or a car payment, and Im diligent about maxing out my roth ira every year however I dont want to dip into retirement to help cover more down payment. I hate the idea of paying so much in pmi 120 per month, but I dont want to wait another year or two just to save more money for the down payment, because housing prices in my city are expected to climb much higher, and interest rates are still extremely low. Can I justify a down payment this low?  <response>: While I am sure a lot of people here are going to say you shouldnt do thisincome to mortgage payment is too high bla bla I am going to mention another point.Paying 7 compared to 5 would be really pointless. At a conventional loan at 5 you would end up with maybe 20 more a month or so per month but you would be able to keep almost 5,000 in savings which you will most likely need when you move incosts a lot of money initially.Just something to keep in mind. 