Until recently the only way to obtain a “high balance” loan (loan amount above $417,001) with less than 10% down was to utilize FHA financing. FHA financing is a good tool, however, is cost prohibitive as it carries up front mortgage insurance AND monthly mortgage insurance. FHA financing is also not always a good candidate for financing in many Condo developments that may not be FHA eligible. The good news is now we have Conventional financing available with a little as 5% down and NO mortgage insurance! Better yet, the whole 5% can be gifted just as it can with FHA. This is a huge new development and will certainly bridge the financing gap that many buyers face today!