A 90% or larger mortgage can be costly. Your monthly payments will be larger because you are paying off a larger loan, and you'll likely need to pay mortgage insurance.
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 (as should your loan officer). 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 private mortgage insurance (PMI), which can cost hundreds of additional 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 can make more financial sense than pursuing a large mortgage alone.