You said you would love to stay home, so it sounds like the majority of your decision is made. I am in a similar situation, I worked full time for 10 months and then went to part time, which I think is worse than full time is some ways - lots of crazy ups and downs day to day. I have made the decision ot stay part-time, for a few reasons
1) the money is nice, we can afford private preschool
2) I got my doctorate the month my first daughter was born and I want to use it
3) I feel lucky to have flexibility
4) the future, I like the comfort of saving for retirement
5) honestly, the break from the kids is nice sometimes, I like to get showered and dressed and have someone call my by my first name :)
However, if I were forced to choose full time or nothing, I qwould quit in a heartbeat. Personally, I think it is very important that a parent be a primary care giver. You DO miss a lot when you work. That is hard for some people to admit, but it is a fact.
Now, about the logistics... when I went part time, we sold our single family home in Vienna, Va and movced ot a townshouse in Loudoun County. (That's since changed b/c of the housing market, we actually are back in a single family.) My husband changed jobs to a better paying and more secure position, but it means a long commute and he is home less. Money is tight sometimes, and we have accululated some bills. Sacrifices we are willing to make.
My advice would be to start living like you aren't working. Put your whole paycheck in the bank. It will make a good security blanket and will tell you had far off from reality you are. Start making adjustments to your spending - eating out and how many cable boxes you have! Consider how your vehicle gas bill will change and consider getting a cheaper used car. Have a yard sale and declutter. Look at real estate in other places. Work on your resume and look for other positions that are more flexible or think of doing something new, even working retail if you are currently doing technical/professional work. See what kind of changes your husband can make. And, most important, set a deadline or else you will never do it. Good luck, I hope it works out.