Are low down payment options available for buyers who can afford a 20% down payment?
Although loans were available to people putting less than 20% down during the real estate boom of the late 1990’s and early 2000s, lenders have since become much more cautious. Even if you can afford high monthly mortgage payments and have a high credit score, you may have trouble finding a low (5% to 15%) or even no down payment loan — and the one you find will likely require you to pay a higher interest rate and loan fees (points) than if you’d made a larger down payment. Also, if you put down less than 20%, you may have to either pay for private mortgage insurance (PMI) or, to avoid PMI, take out two separate loans (a first mortgage and a second mortgage).
