[Tell It Right]

I respectfully disagree. There's more of a middle ground option.

Such as saving 30% or more down and getting a mortgage for the rest. IMHO when people go through the financial discipline to save up for a large down payment, they've trained themselves how to make the mortgage payments from then on. Often they have margin in their budget to invest into their Roth IRA's or Roth 401K's (assuming they still have the saving mentality they had back when they saved up for a down payment while renting).

[Yo-Yo]

I respectfully have to point out that we're talking about first-time homebuyers. In order to save 30% down, you're going to have to save for several years, and in the meantime you have to live somewhere.

Saving 30% down on a $400,000 home ($120,000) is not realistic for an under 30 couple unless they have a very substantial income. They can't even pay off their student loans...

[TexasGator]

I financed at about 5.5% 30y fixed letting the financed part stay in stocks. I refinanced at about 3%.

Leverage your money. Homes appreciate. Stocks appreciate.