In 1979 my husband and I bought a house. FHA with 5% down. The 20% down thing is an urban legend.
In all fairness to “hercuroc”, the comment indicated 30 years ago and in CA (which not surprised it could have different mortgage lending standards). GA Girl goes back 41 years ago with a 5% on an FHA, which has the backing of the federal govt, because it is to help people get into homes.
In DE 1987, I bought my 1st home w 10% down ... + PMI. I remember the application process - I came away feeling like a criminal after Mr Private Banker got done with me. DE is a big banking state so they like to run things. My house appreciated 20% in 3 years.
I moved to 2nd home in 1990 that was priced at 20% more than my 1st, and put 20% down - my mortgage payment was slightly higher, but no PMI. The 2nd mortgage application process (nor any since then) didn’t bother me. I learned in the intervening time that these rude bankers needed to write loans to make money and they weren’t about to let me walk away. In the late 1990s through the end of W’s term, mortgage lenders had a totally different attitude - they were very open about wanting my business - coming in w/ 20, 30% and more + a job was red carpet treatment - even in jumbo loan territory.
If many banks follow suit with requiring 20% minimum, the PMI underwriting business should suffer in the mortgage market and depend only on outstanding loans, praying no substantial increase in foreclsure.