What's this guy talking about? Loans over 80% have been routine for decades. Even ignoring the obvious example of FHA loans, 81% - 95% conventional loans with PMI have been a huge portion of originations for at least 25 years.
"81% - 95% conventional loans with PMI have been a huge portion of originations for at least 25 years."
I bought my first house in 1993, with a "sweat equity" down payment equal to 5%, with closing costs paid by the builder. It took five years to get rid of the PMI. Even with PMI, it was still cheaper than rent. I've got around $90,000.00 equity in it now, even though the market in my area was flat for three years, 2000 - 2003. Not bad for no money out of pocket.