There are a number of programs that allow you to take out a 90% or larger mortgage, although in high-cost markets these programs may be harder to find.
We encourage homebuyers to explore their options, and we do our best to share all the options with you, too. A 90% mortgage can be a great option, but it can also 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 mortgage insurance, which can cost hundreds of dollars each month. In addition, taking on a larger mortgage means taking on more risk; if property prices adjust even a little bit, you might lose your entire investment.
Our homebuyers live in expensive housing markets, so the combination of Landed's down payment program + a mortgage makes more financial sense than pursuing a large mortgage alone.