Don't sweat the 20% down. Yes you will pay mortgage insurance for awhile (which is a total racket) but at the rate real estate is climbing, you'll have 20% equity in no time, then refinance to eliminate the mortgage insurance.

Stop paying rent and buy something decent (which I know is hard right now since there is high demand and not a lot of inventory - you have to be fast). Other advice, go see a mortgage company now and get pre-qualified so you can slap down your pre-qual letter at offer time and lock something up.

Real estate is most definitely the current ticket to the good life in the US. Don't know how long it will last, but right now that seems to be how people are moving up and building wealth.