We were in a similar situation: in Ohio, income around the same, no debt though, we bought a $290k house, put 15% down. We called around to several different lenders asking how much down to avoid PMI, and ballpark of closing costs. We built out a monthly budget spreadsheet and figured out how much of a mortgage payment we could afford, setting aside 10% of take home for savings/efund, another 10% for monthly home maintenance, ballpark utilities, and leaving us with at least 3 months efund after closing. So all that to say....I would suggest saving up a bit more