<prompt> Human: Im fresh out of college, making 28,000 per year with a wife, a child, and a second child on the way. We currently live with my mother-in-law who helps us with childcare expenses. However, the section of the house we live in is too small for another child, so we are building a house. We were able to buy property across the street from my mother in laws and it is paid off. My Father in law is a general contractor who has built more homes than I can count. He has offered to build a home for us and not charge labor according to him, about 50 the cost of a house. Im trying to get an idea about what size mortgage would be manageable for us. Currently we dont really have credit card debt 200 that is being paid off by the time the house it build, and I have a car payment of 140 per month. I have student loans, but am currently on Income based Repayment for 0 due per month right now. Once the kids are in school my wife will go back to work and I will hopefully have moved into a better paying position at a new company by then. My problem is this: Right now, our financial situation is not great, but within the next 5 years it should get quite a bit better. However, we can only benefit from the free labor offered to us if we build a house now her father is probably retiring in the next 2 years. So what can we afford? Ive struggled with doing the math knowing that the next fews years will be tight, but worth it in the long run. One last note, We have about 12,000 in savings we were going to use for a down payment, but the mortgage officer we spoke with the other day said we could use her dads labor as a gift of equity. Meaning that if he builds a 200,000 house, our mortgage is roughly 100,000 since labor is not being charge, thus we have essentially made a 100,000 down payment. Edit:Thanks everybody for the help, constructive criticism, and just the criticism. I really do appreciate the input. Well be rethinking and reevaluating everything before we proceed. I believe that our unique situation will help this work out in the long run. But, I also acknowledge that we are not immune to circumstances outside of our control, as many of you pointed out. Please have a great day and thank you very much to those who, may not like the idea, but were willing to offer advice on how to proceed as safely as possible.Assistant: I wouldnt recommend someone on a 28k income with student loans and another kid on the way to be taking a mortgage for building a home. Theres a ton of ways this can go wrong and you have a lot to deal with already. Can you put those plans on pause until your income situation is better? Its not bad to rent for a year or two while you wait for things to stabilize. Human: I agree with you but were in a spot where the best option seems to be to build. Were in a fairly rural area. Anything within an hour drive is very expensive. Not a lot of houses for rent and no apartments. The lowest rent I found was around 700-800 and it was very small for 4 people. Also, the gift of labor is somewhat time sensitive. Father in law will be retiring and after that, its unlikely hed be able to build the house for us.Assistant: No, it doesnt seem to be the best option. If your wife is unable to work and youre not able to boost your income with a better full time job or another part time job, you cannot proceed. Youre going to be in for a world of hurt.Human: While I do appreciate your input, we can and likely will proceed. Whether its a 50,000 house or a 200,000 house it is our best option for a multitude of reasons. Im not happy with our current financial situation which is why Im looking for opinions and input here. Trust me though, your sentiment echoes in my head every day. But the other options are all but exhausted, and this one can be made to work.  <response>: Always baffles me when people come here for opinions, and then proceed to shoot them down. 