Your question brings up several considerations:

1. Is it better to buy vs rent
2. Will it be better to buy now or wait until you have a 10% down

1. With the first issue, this is an amazing time to buy. IF, you do your homework you will surely be able to find an amazing deal. My advise, make sure that you get a great deal as prices are more than likely going to continue to drop. IF, you find a deal 10-25% below market value, you will be insulated from any decline in value.

Home ownership will provide you with some tax deductions, which can actually make your home ownership less than renting (Unless WASHINGTON strips this away). Personally, I would recommend a Single Family Residence over a Condo. The Home Owner Association Fees can get out of control. Ask your Local Realtor to show you a 10 year value graph for a Condo vs Single Family Residence.

2. While this is certainly a consideration, you will likely find NOW is the best time. Most lenders have indicated Interest rates will be going up. So ANY gains you made by waiting, will likely be offset by increased interest rates. Right now, prices are low along with low interest rates. It's a great time to buy! Check your local area and FHA financing. We have a 3.75% down FHA Loan program in our market. You likely have the same.

Good luck, and FIND yourself a GREAT REALTOR! That's the single biggest step you can take to ensure you get a great deal. Not the only step, but a critical step!