Home Buying in Chicago>Question Details

Kevin, Home Buyer in Arlington Heights, IL

Anyone know a good bank that will do 5% down conventional financing?

Asked by Kevin, Arlington Heights, IL Thu May 14, 2009

I've heard that some banks are now doing 5% down conventional financing for those with excellent credit. Does anyone know of a bank that has this kind of program?

Help the community by answering this question:


The problem is not that banks are unwilling to lend 95%, it's that the Mortgage Insurance Companies are unwilling to provide MI.

A great alternative is FHA financing. FHA only requires 3.5% down, and allows the seller to credit up to 6% of the closing costs.

As for bank owned properties, they will definately allow FHA offers. One FHA program is the 203k rehab. It's a product that lends you money for both the purchase of the home and for the rehab as well.
1 vote Thank Flag Link Thu Jun 25, 2009
Yes Municipal Bank in Bourbonnais, 815-935-8000
0 votes Thank Flag Link Fri Mar 9, 2012
Same question for OKC area.
0 votes Thank Flag Link Thu Mar 8, 2012
Conventional with 5% down is nothing out of the ordinary. We can offer 5% down Conventional down to a 640 middle credit score with PMI even on condos!
0 votes Thank Flag Link Thu Dec 29, 2011
Coventional unfortunately 5% is too low and in this market you will not find it BUT if you are a first time home buyer you can get 3.5% down which is great.
Good Luck
0 votes Thank Flag Link Wed Dec 28, 2011
I closed a 5% down deal with this person. If you need a realtor I am available to service you. All the best.

50 S. LaSalle, Chicago Illinois 60603 | phone (312) 557-7340
cell (708) 945-7432 | fax (312) 557-3068 | eec4@ntrs.com
Please visit northerntrust.com
0 votes Thank Flag Link Wed Feb 9, 2011
No but I know of a lender who can give you without paying any interest but you make a return of 5% annually for 20 years and the duration to bay back the loan is 20 years.
if you are interested I can let you have the contact to contact the official department of the lender.

The contact: fultoncarter_officiald@yahoo.com
0 votes Thank Flag Link Sun Jun 28, 2009
I would really like to know the answer to this as well. It is not that the lenders will not do 95% but a 5% down payment requires pmi and no pmi companies are financing 95% loans on condos in Chicago or other declining market area's.
0 votes Thank Flag Link Thu Jun 25, 2009
the issue you have may that Chicago is in declining market from lenders perspective, so mortgage insurance companies may need 10% instead of the usual 5% (especially condos)

good luck!
Web Reference: http://www.1sthomegroup.com
0 votes Thank Flag Link Thu May 14, 2009
Hi Kevin-

One of the lenders I work with also offers a 95% LTV. If you would like his name/number let me know.

Laura Karambelas
Baird & Warner
0 votes Thank Flag Link Thu May 14, 2009

Okay those are all very good reasons. Let's see if we can get something rolling with my lender doing 5% down. Rates look pretty good today as well.

David Cruickshank
Ardain Mortgage Corp.
0 votes Thank Flag Link Thu May 14, 2009
I'm already approved for FHA, but it really limits what I can purchase in the way of condos. The building needs to be FHA approved or spot approved. In addition, I've been looking at bank owned, and they don't like to deal w/FHA due to the number of stipulations and amount of time it takes to process etc.
0 votes Thank Flag Link Thu May 14, 2009
I have a lender that will do 5% down with some stipulations that I can discuss further with you. Is there a reason you absolutely must do conventional. FHA is a good option for you. The PMI payment is less than a conventional and you will have less hits to your rate because of the high loan to value. If rates get lower than what close on the purchase we can do what is called a streamline refinance for you with minimal paperwork and no appraisal. I have a lot of experience with FHA. Let me know if I can help you and compare your options. Give me a call or shoot me an e-mail.

David Cruickshank
Ardain Mortgage Corp.
0 votes Thank Flag Link Thu May 14, 2009
Guaranteed Rate has a 5% down program.
0 votes Thank Flag Link Thu May 14, 2009
We do them but there are strict credit requirements. Also, I am not sure if Chicago is listed as a declining market - but if it is then you really have a tough find. However, since the Cook County FHA loan limit is $410,000, you will have a MUCH, I repeat MUCH, easier time obtaining an FHA loan. Plus, not only are the base rates lower than conventional on a 95% loan, the MI is cheaper and your total payment will be significantly less. Plus you can save some extra cash and only put 3.5% down (and probably still have the cheaper payment).

If you have any questions, please let me know.
Luke Allison
Bank of America Home Loans
0 votes Thank Flag Link Thu May 14, 2009
Hi Kevin, Yes, Founders Bank in Chicago (the Mt. Greenwood branch) does 5% down conventional financing. I will be glad to give you additional information if needed. The lender that can help answer your questions is Carrie Horin.
0 votes Thank Flag Link Thu May 14, 2009
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