[Worrots]

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What about doing a 5, 20, 75 Mortgage or something like that, where you put down 5% and then you have two seperate mortgages?

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FYI, I went through this experience this past year also with a pregnant wife.

The less you put down, the more you're going to pay in interest and other fees both every month and over the length of the mortgage. There are lots of complicated schemes to hide this fact, but that's the bottom line. You'll also likely be bearing more and more of the interest rate fluctuation risk the less you put down.

You have a rent vs buy situation. Renting you save up for the down payment, buying you get equity each month. But with so little down, you're not going to be getting much equity at all each month. PMI can bump up your interest payments enough to cancel out the equity you get.

There are budget calculators all over the web, figure out how much you can spend on housing each month. From that figure out how much you can afford to borrow and what price range you're in. Go see the house vs apartment choices in Galveston at $X per month. Bear in mind that closing costs, fees, etc will add to the actual purchase price (depends on local market, don't be surprised if it's another 5%+)

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The amount of house is not too, too important 2 or 3 bedrooms would be fine.

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Seriously, look into a one-bedroom apartment for a year. Your kid won't need his own room for awhile. You're taking on new (first?) job, first kid, new city (?), and first home all at once? Consider delaying the house a year till you see how the job is, how much the kid costs each month, and you get to know the area well.