Banks Offering Mortgages With Only 5% Down Payments

November 5, 2013
CNN Money 
mortgage lending news

Banks like TD Bank, Bank of America, and Wells Fargo are loosening their purse strings and are offering loans with down payments that are as low as 5 percent. TD Bank's "Right Step" mortgage, for instance, lets borrowers secure a loan with a 5 percent down payment, and also allows them to receive as much as 2 percent of the sale price as a gift from a third party, so they would really only need 3 percent down. Market opportunity is driving the trend, as the Federal Housing Administration has had to increase lending costs to deal with its depleting reserves.

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