A 5% down payment conventional loan is available again! There are some heavy restrictions, so please read the following stipulations:
- Conforming loan ONLY (Maximum loan amount: $417,000)
- Purchase only (no refinances)
- Single-family home or detached PUDs only (no condos or attached PUDs)
- Must be your primary residence
- 760 minimum FICO (the middle FICO of all borrowers)
- 41% maximum Debt-to-Income ratio
Please note this is for California real estate. If you do not fit into these guidelines, then FHA is most likely the way to go, which is more flexible with credit and qualifying requirements, although more expensive than a conventional loan.
I do not know how long this will last, but 5% down has not been available for a year.