http://www.usatoday.com/story/money/bus ... n/2075095/
In another sign of the housing market's brightening outlook, more home buyers are discovering conventional loans with down payments well below the 20% or higher levels of recent years.
Loans with down payments between 5% and 10% accounted for almost a fifth of the conventional loan offers that lenders made on the Lending Tree online exchange in the first quarter, according to Lending Tree.
That's up from just 6% of conventional loan offers in last year's first quarter and only 1% of the offers in 2011's first three months.
This did not end well when this happened in 2005, 2006 and 2007. It's a warning that things are getting too frothy.A similar trend shows up on the Zillow Mortgage Marketplace. The number of lenders quoting non-FHA loans with down payments of 5%-10% is almost double what it was two years ago, Zillow says.