The loan industry is constantly changing, particularly since the real estate boom that took place back in the late 1990’s and early 2000’s.  Today lenders are a bit more cautious. Even if you can afford high monthly mortgage payments and have a high credit score, loans with small down payments of 5-15% can be a bit more challenging. While there are some available out there, they often require the borrower to pay a much higher interest rate and more points than if they had made a larger down payment. 

Another consideration is if a borrower puts down less than 20%, private mortgage insurance (PMI) will be required.  The only way to avoid PMI’s is to take out two separate loans (a first and second mortgage)

Last updated on November 11, 2010 by Admin