How does using Landed's down payment program compare to taking out a 90% mortgage?

Many Landed homebuyers live in expensive housing markets, where the combination of Landed's down payment funds + a mortgage can make more financial sense than pursuing a large mortgage alone.

Note: Due to a temporary unavailability of DPP investment funds, all Landed metro areas are being put on a DPP waitlist effective September 8, 2022. You can read all the details (including FAQs) here if you would like to know more.

It is very common for interested homebuyers to take out a 90% or larger mortgage, but we encourage all homebuyers to explore their options. We do our best to share all the options with you (as should your loan officer).

What are the risks with a 90% mortgage?

A 90% mortgage can be very costly. Not only will your monthly payment be higher because you’re paying off a larger loan (usually at a higher interest rate), but you’ll likely need to pay private mortgage insurance (PMI), which can cost hundreds of additional dollars each month. 

In addition, as property prices adjust so does the level of risk in your investment. To get a general calculation of what it would look like to buy without Landed’s down payment funding and with PMI, you can use this PMI calculator.

As for direct comparisons, which includes a look at Landed’s down payment program with no PMI, we recommend talking with one of our participating lenders, who can walk you through all the differences in great detail. 

We’d be happy to introduce you to a participating lender, you can email us at to get the process started.