Hi John, I have an update for you. Lenders have announced yesterday they will begin issuing loans with 95% loan to value again subject to being able to obtain PMI. Outside of the Rural Home Loan no PMI is not available unless you are using hard money. Interest rates on a hard money loan start at 12% these days and closing costs are running 10% plus.

5% down conventional financing is not available in California at this time due to the state's status as a "declining market". There is a loan product under the rural home loan program by the federal government. Here's a link to a lender who offers these types of loans. There are many restrictions so ask questions first. http://www.usdaloans.com/lending-guide.html

Are you a teacher, police officer or fireman? there may be special loans available for you that could meet your needs.

You will need to pay PMI with a 95% loan unless you can find private financing.