Is it smart to take out a loan to use as the down payment on a house?

My wife and I found a house we love, but after we talked to a lender they down not do zero down loans anymore and that is not something I expected. We only have or tax money back and still would have to total needed to pay for the loan. So my wife and her sister asked their grandma to take out a loan to pay for the... show more My wife and I found a house we love, but after we talked to a lender they down not do zero down loans anymore and that is not something I expected. We only have or tax money back and still would have to total needed to pay for the loan. So my wife and her sister asked their grandma to take out a loan to pay for the down payment. Which would be paid back later. I want us to not get a house now and save up till next year and try again. Yet my wife and her (also a few other people) keep saying that we should get it now and not wait. To me it just doesnt sound like a smart idea to take out a loan to pay to get a mortgage going. Can someone give me something to go to her with that this would at least get her to think that this might not be such a great idea.
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