I've been thinking about buying a house by the end of the year. I live in the Midwest - KC, so we're not affected by the housing boom/bust that much. The question is: should I wait little longer (1-3 years) considering that Option ARMs, Alt-A's and other friends are going to reset soon, or should I take advantage of the 8K grant this year? There are two reasons why I think buying this year is a good idea: first the 8K grant and second, I have $110 cash saved up and don't want half of it to evaporate due to inflation or falling dollar (or other craziness). Houses I'm looking at are in the $160 range and I would put all $110 down. Thoughts?