A true conventional loan with 5% down and no mortgage insurance doesn't exist; under Fannie Mae and Freddie Mac rules, anything above 80% loan-to-value requires MI. When you see "no MI" advertised, the offer comes from one of two places: - A portfolio or non-QM lender that isn't underwriting to Fannie/Freddie. That usually means a higher rate so the bank can self-insure, and sometimes those borrowers are surprised to still see a mortgage-insurance notice, because the bank buys the coverage itself. - Lender-paid mortgage insurance (LPMI) on a Fannie/Freddie loan: you accept a higher interest rate, and the lender uses that extra margin to buy the MI for you. It can also be structured as a one-time upfront premium. The trade-off to know: unlike borrower-paid MI, rate-based LPMI generally can't be canceled when you reach 20% equity. It rides until you pay off or refinance the loan. Either way the insurance is still being paid; it's just built into the rate instead of showing as a separate line. For a well-qualified borrower, the actual MI cost is often much smaller than people assume, and it depends on your credit, down payment, and program, so get a current quote before you rule it out. Paying a modest monthly amount to get in and start amortizing your loan usually beats waiting for a hypothetical perfect entry point.