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We definitely aren't interested in being house poor. My sister just went through a foreclosure and we don't ever want to go through that.
jmd: Hmmm, adding another bathroom wouldn't cost nearly as much as buying a larger home. Good idea. We have already remodeled one long bedroom into two smaller rooms to turn our home back into a three bedroom as it originally was.
Mrs.CQ: It's good to know that some lenders will use the income. Thank-you.
I think we will wait to get more serious about a larger home. Right now it's not a huge deal to only have the one bathroom, but as our children get older it will be more important. We have one bio daughter who is almost seven so she's not a bathroom hog yet:)