A borrower using a conventional mortgage will have to put up at least a 20% down payment or purchase private mortgage insurance.

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This is because conventional mortgages are not backed by the government and the lender is taking on more risk. Therefore, they require a larger down payment to mitigate that risk. If a borrower is unable to put down 20%, they may need to purchase private mortgage insurance to protect the lender if they default on the loan.

A Borrower Using a Conventional Mortgage Will Have to Put