<prompt> Human: Longtime lurker here whos gleaned a lot from this sub.Wife and I are in the market for our first house with a max budget of 315kish. Combined annual income is around 85k, and we have roughly 55k in savings. No debt to speak of.Weve been considering two ways to go for financing.Option 1: State-offered loan where wed put down 3, and state gives us 2 via a guaranteed grant. Pros as we see them: free equity, however small, and we maintain the bulk of our savings as a safety net. Cons: Wed be locked into paying PMI mortgage insurance for two years and would be looking at a higher monthly payment.Option 2: Conventional 20. Pros: more equity up front, lower monthly payments with no PMI. Cons: Even with a small amount of help from my parents and yes, weve looked up the implications of gifting down payments, wed wipe out all but 10k of our savings. Were cautious by nature and generally wouldnt want to sink so much into one thing house. Which would you go for? And are we missing anything glaringly obvious? Thanks much in advance.  <response>: Which would you go for?Option 3, keep saving.3-6 month emergency fund, 20 down payment, closing costs, moving costs, etc. 