re: 5% or 10% down ??

quote:

---

we will be selling the house after 3-5 years

---

quote:

---

end up owing out of pocket if we try to sell it...

---

With those two lines, there are good chances you will end up paying out pocket regardless. The first 5-10 years of your loan you will be paying mostly interest anyways.

I would either (a) look for a nice apartment, while saving everything you can or (b) look for a house that is considerably less than $200k.

That seems like a lot of house for two people, of course not knowing the housing market where you live.