I haven't participated in any poker home games. However, your low-stakes games with a $5 buy-in is a nice idea and it's a great way to enjoy the game with friends.
When we play home poker games, the idea has always been to keep the stakes as low as possible. That's why we most times played a $0.25/$0.50 Pot Limit Omaha. At that low stake, it was always impossible for anyone's night to be ruined because they lost a buy-ins.