I got this comment on an old post about private mortgage insurance.

Want to make sure you are aware that 95% conventional financing is back! Certain lenders are now offering loans, with PMI coverage, and only 5% down.

Credit standards apply (ex: minimum FICO score 720 and maximum dti 41-45%); however it is a positive sign that borrowers looking to purchase in excess of FHA minimums ($346,250), may now consider conventional alternatives. Progress is being made!

Tori Levitt
Sr. Mortgage Consultant
Core Mortgage Group, LLC.

You have to have an excellent credit score to get the 95% loan but as time goes on and home prices stabilize, I imagine they will likely relax the credit score requirements.

I agree with Tori that this is progress.