<prompt> Human: THE SITUATIONMy financial situation has changed significantly over the past year and Ive used that income to pay off all my debts. I no longer have any student, credit card, or auto debt but also havent been able to save anything besides a basic safety net. I had assumed I would be saving for the next 5 years or so, but I just found out my local credit union is offering a 0 down payment, no PMI, 51 ARM, FHA loan. I cant tell if this is too good of a deal to pass up, or a financial trap given the ARM component. I also dont know if I have enough saved up to realistically cover closing costs without completely draining my savingssafety net.---THE FINANCIALSStatic Amounts ------Expected Home Loan 350,000Current Savings 12,000---Current Monthly Budget ------Monthly Post-Tax Income 6,000Rent 1,550BillsUtilities 600GroceriesHousehold Needs 350Gym 250RestaurantsBars 500Entertainment 300Misc 400------Net Income 2,050---THE QUESTIONIm not claiming to live a super frugal lifestyle in fact, just looking at some of my budget line items is a little embarrassing but am I in a position to take advantage of this loan that seems like a really good deal? Or should I just keep saving and hope a decent FHA loan exists in a few years when Im ready?Additional information that may or may not be relevant. Property values of been steadily increasing in this area for a while Silicon Forest and I would prefer to get ahead of that as soon as possible. Im also likely to rent out a room or two to help pay down the principle sooner rather than later to avoid as much of that ARM flexibility as possible.Thank you for spending the time to read through all this!edit- Additional information I should have included about the loan. APR is 4.071. They advertise built-in rate protection of no more than 2 increase per year with a max increase of 5 for the life of the loan. But 9.071 sounds high to me to begin with, so it doesnt feel very protected.  <response>: Id accumulate a lot more savings before buying a house - they tend to be expensive, especially in the first year. And Id avoid ARMs, unless the interest rate doubling wouldnt bother you, or you plan to pay it off within that 5 year period. 