Dezzy, Don't despair! If we've learned anything during the past 7 years is someone is going to come up with a loan product which will meet your criteria. I have been on a mission as of late trying to discover all the different loans out there for the consumer. Even in our expensive region of the country you still have loans which are community based, for first time homebuyers and for specific professions (firemen,police, nurses, teachers,etc). I would hit ALL the big players and see what they have for you. NOT every area of San Francisco is a $1,000,000 plus!! Check with BofA, CountryWide, Washington Mutual, Wachovia,Indy Mac,and your local credit union and larger brokerage firms. You'll be amazed what's out there. Don't be seudced by the "teaser" rate which you darn well know is tooooooo gooooood to be true!! Ask for a Good Faith Estimate before you do ANYTHING to do with money!