Private Mortgage Insurance
Private Mortgage Insurance or PMI is required when the loan amount is MORE than 80% of the purchase price. The lower the down payment the higher the mortgage insurance premium charged.
Military veterans who qualify for a VA loan have the easiest route to buying a home, with the need for NO money down. VA loans can provide up to 100% financing for qualified military personnel and veterans and requires NO monthly mortgage insurance premium.
The bottom line is that regardless of your credit and income situation, you actually have different down payment options to purchase a home.