"we will take stake in your house - with your money"
Seriously? What happens if you foreclose? What happens if the housing market crashes and you sell? The government already owns enough of me. Honest to God, it makes me want to see this house I live in, with no debt, bailout while the prices are high, move into the second home over on the Shore and wait for the crash. You know it is coming. Then let the dust settle and build or buy a new house for a fraction of the cost. It's a great plan, but, it makes me feel slightly criminal.
This is going to come and get us too, I suspect.
I think you have your priorities in order - I think a lot of other people are making the biggest purchase of their life, without realizing it is going to cost them everything else.