Mortgage Down-Payment Options For Buyers With Less Than 20% Down

January 14, 2022

If you're looking to by your first home and don't have a 20% down payment there are more conventional options for you than you might think. While most buyers automatically think an FHA loan is the best option for them you should also inquire about a conventional loan with PMI, or Private Mortgage Insurance.

Essentially, PMI is insurance to protect the lender due to the increased risk of home owners putting less than 20% down. There are a number of ways you can pay for PMI such as borrower paid PMI, upfront PMI, lender paid PMI and split-premium PMI. While each offers different pros and cons they can all help you stretch your budget. We recommend contacting a BNC National Bank Mortgage Lender to learn more about each PMI type and which might make the most sense for you.