After considering a birth center and homebirth, we're opting for homebirth. Though, my husband's a bit nervous about our neighbors being upset since we live in an apartment. So far that's something of a frustration to me, since I really don't think the neighbors have a right to weigh in on this, and I kind of don't care if they don't like it. I don't tell them what to do in their apartments.
Anyway, that aside, I went through the financial roundabout too. My insurance will NOT cover any care provided by anyone but an OB, and will only allow me to deliver at a local hospital with the highest C-section rate in town (bah).
We would have to pay out of pocket for the FSBC in town, and we can't afford it. So homebirth's what we're doing. It's the cheapest option, and I can pay for it using my medical flex plan account.
Feeling good about this decision, many of the women here at Mothering.com say that the only difference between a FSBC and HB is that you drive somewhere. Plus, if there is an emergency, my house is a block from the hospital, while the FSBC is about 30 min away.