What is stupid about buying a house with a mortgage?
2) A mortgage is all front end loaded with the interest.
Sure, 3% mortgages were a great deal, but all that did was artificially raise home values. I came from the 80's when a decent rate was 11%, (which kept property values from skyrocketing).
Saving every penny you can, pack a lunch every day, buy and drive used vehicles, don't run up credit cards, and let the cash build. In surprisingly short time you can buy the house you can afford with cash. Short sales are great buying opportunities.