<prompt> Human: Hello Personal Finance.My wife and I are going to start looking to buy a home sometime soon. We are both in our mid 20s.To give you a breakdown of our financials...we have :- 200k combined yearly income- 0 debt of any sort- Nearly max out our 401ks- Very good credit- Monthly combined income post tax, 401k, etc of around 8kWe are in the San Diego area and are looking to buy a house in the 650k range.We will have 170k saved in cash saved between my wife and I at the end of the year. Both our parents are willing to loan us around 40k each. So that means we have access to around 250k in cash.Obviously we want to put enough down to avoid PMI. That magical number to do that would be around 20, so around 130k down. We will probably end up with a 30 year loan.My father has recently brought up these new low down payment loans, where you only have to put down around 3 and not pay pmi you can already read about it here He thinks we should try to use a loan like this and only put the 3 down or some other low amount and save the rest of our cash.Obviously this would mean that my wife and I would be paying a lot more interest over the course of the loan.My question is, since my wife and I have been saving to buy a house for a long time and have the cash to put 20-25 down...do you think we should put 20 down...or put a low amount down like 3-5 if we dont have to pay PMI.Obviously we want to have at least 15k saved in our rainy day fund as well as some extra cash on hand to do upgrades, buy furniture, etc. TLDR Wife and I easily have enough in the bank to put 20 down on a house. Should we do that, or try to put down 3-5 with these new no PMI loans?Thank you!!  <response>: There is still PMI. Its a Freddie Mac loan with less than 20 down. There will be PMI.Lender-paid PMI exists, and can be paid for by bumping your interest rate. FannieFreddie loans always have the options of borrower paid monthly PMI what most people do, borrower paid single upfront premium, lender paid monthly, or lender paid single upfront premium. Lenders can do all manner of magic by bumping your interest rate.Cool that B of A got CNN to plug them, but this isnt really something super new or exclusive to any lender. One thing about these income capped programs: most of the time, if youre below the cap for the area, youre probably stretching yourself financially to buy in that area. Not always, but typically. 