<prompt> Human: Im in my late 20s, live and rent in Nj and am looking to buy a home.Assets: My spouse and I bring in a little over 100k a year, will be bringing in 110-115k if I stay on track with my yearly pay bumps when we intend to buy in about 2 years. I will have at least 100k available for a down payment. Also have about 10k in investments and 50k in retirement savings.Liabilities: I have no student debt, pay off the statement balance on our credit cards every month to avoid interest, own my car and my spouse pays 200mo on her car lease. Our rent with utilities is about 1900mo.The VA home loan limit in the counties were looking at is 679650. The price range were looking at is roughly 500k-650k. In my case, is there a strong argument not to just take a conventional loan since I can make the 20 with a little more saving discipline, not have to pay PMI and avoid potential seller aversion to VA loans? The only merit I can think of taking the VA home loan is that we might be able to purchase a more expensive home with less of a down payment, but wouldnt I just want to reduce the principle if I have the funds available anyways?  <response>: My spouse and I bring in a little over 100k a year, The price range were looking at is roughly 500k-650k. ...No! Too much house for you regardless of your rate. Unless you have a battalion of children you need to provide shelter for , I think you should find some place that is in your price range. This looks to be about twice as expensive as what you should be looking to purchase. 