3 Problems With Making Less Than a 20% Down Payment on a Home

3 Problems With Making Less Than a 20% Down Payment on a Home
·4 min read

Most conventional mortgage lenders require a minimum down payment of 5% on a home purchase, though many have higher requirements. If you don't put down 20% on your home, you'll pay extra for it in the form of private mortgage insurance, or PMI. This happens automatically once your loan balance falls to 78% of your home's value.