Does 5% down conventional mortgage require PMI?

Yes, with just 5% down, you will need to deal with mortgage insurance somehow. There are multiple way to pay for mortgage insurance. The most common is monthly. Talk to your loan officer about the other options.

Technically - yes. Any loan with less than 20% down payment will require some level of mortgage insurance. However, there are other ways to handle the mortgage insurance payment to where it is not a line item included in your monthly payment. these options include LPMI - Lender Paid Mortgage Insurance, SPMI - Single Premium Mortgage Insurance, and even maybe Split Edge MI. There are pros and cons to each and really need to look at actual numbers to see which way makes the most sense. Local lender in Atlanta. Happy to help.

Anything less than 20% down will require private mortgage insurance (PMI). Some lenders do offer, what is called, lender paid mortgage insurance (LPMI). Instead of paying PMI every month, you pay a higher interest rate for this product than a traditional loan with PMI.

5% down payment does require PMI. You can also consider Lender Paid PMI (LPMI), Split PMI (shared between you and the lender), or monthly PMI. Each of those scenarios come with a unique interest rate quote based on your credit score and other factors.