15% Down With No Mortgage Insurance? A Conventional Loan Option Worth Knowing About

For many homebuyers, 20% down feels like the magic number.

Why? Because putting 20% down on a conventional loan typically means you can avoid private mortgage insurance, commonly called PMI.

But what if you have enough money for a solid down payment, yet you'd rather not put the full 20% into the house?

Qualified homebuyers may have another option:

15% DOWN + NO MONTHLY MORTGAGE INSURANCE

And unlike some specialty no-MI programs, you don't have to be a first-time homebuyer or work in the medical field to qualify.

Why Would Someone Choose 15% Down Instead of 20%?

Buying a home requires more than just the down payment.

After closing, you may want money available for:

• Emergency reserves
• Moving expenses
• Furniture or appliances
• Repairs and home improvements
• Other investments or financial goals

Putting an additional 5% down just to avoid mortgage insurance can tie up a significant amount of cash.

Here's an example:

On a $700,000 home purchase:

20% down = $140,000

15% down = $105,000

Difference = $35,000

With this program, a qualified buyer could potentially put $35,000 less toward the down payment and still avoid monthly mortgage insurance.

That doesn't automatically mean putting 15% down is the better financial decision.

It means you have another option worth comparing.

You Don't Have to Be a First-Time Homebuyer

One of the biggest misconceptions about specialized mortgage programs is that they're only available to certain groups.

That's not the case here.

The Clear Path No MI program is:

✓ Not limited to first-time homebuyers

✓ Not limited to doctors, nurses or medical professionals

✓ Available to qualified repeat buyers

This can make the program particularly interesting for move-up buyers who have savings or proceeds from the sale of another home but don't necessarily want to put all of that money into their next property.

What Are the Basic Requirements?

The Clear Path No MI program is a specialized conventional financing option for borrowers who meet specific underwriting requirements.

Program Highlights

Down Payment: As little as 15%
Loan-to-Value: 80.01%–85%
Mortgage Insurance: No monthly MI
Minimum Credit Score: 740
Maximum Debt-to-Income Ratio: 43%
Occupancy: Primary residence only
Loan Term: 30-year fixed
Loan Purpose: Purchase or rate-and-term refinance

Eligible Property Types

• 1–2 unit single-family residences
• PUDs
• Townhomes
• Condominiums

The loan must meet the program's established requirements. Exceptions outside of these parameters are not permitted.

Is No Mortgage Insurance Always the Better Deal?

Not necessarily.

And this is why it's important to compare your options instead of choosing a mortgage based on one feature.

A loan with no monthly mortgage insurance shouldn't automatically be assumed to have the lowest overall cost.

For example, a borrower with excellent credit may qualify for relatively inexpensive mortgage insurance on a traditional conventional loan. Interest rates and loan pricing can also vary between programs.

Instead of looking only at whether a loan has mortgage insurance, I recommend comparing the bigger picture:

• How much cash will you need at closing?
• What will your total monthly payment be?
• What interest rate and loan costs are available?
• How much money will you have left after closing?
• How does each option fit your other financial goals?

For one buyer, putting 20% down may make perfect sense.

For another, keeping an additional $20,000, $30,000 or even $40,000 available after closing may be more valuable.

The goal isn't to find the loan with the most attractive headline.

It's to find the financing strategy that makes the most sense for you.

Already Planning to Put 20% Down?

Before automatically putting the full 20% into your home, it may be worth comparing your options.

If you've been saving toward a 20% down payment because you thought that was the only way to avoid mortgage insurance, you may have another choice.

I can compare:

✓ 15% down with no monthly mortgage insurance

✓ 20% down conventional financing

✓ Traditional conventional financing with mortgage insurance

Then we can look at the differences in your:

• Cash needed at closing
• Monthly mortgage payment
• Interest rate and loan costs
• Cash remaining after closing

Before You Decide How Much to Put Down, Let's Run the Numbers.

A mortgage shouldn't just get you into the home.

It should also fit into your bigger financial picture.

Let's Build a Strategy That Fits Your Goals

Whether you're considering buying your first home, refinancing your current mortgage, or exploring ways to improve your monthly cash flow, every decision should begin with a clear understanding of your numbers—not market speculation.

I'd love to help you evaluate your options and create a strategy that supports your financial goals.

Schedule a free 15-minute consultation, and we'll review your questions, discuss your goals, and determine the next best step based on your unique situation.

I'm Amber Jones, Certified Mortgage Advisor, and my mission is to educate, empower, and help you confidently navigate every stage of your homeownership journey.