They financed more, on purpose, to keep cash for the renovation. The buyers had been approved to finance around $1,000,000 with roughly 15% down at the price point they were targeting. When they landed the fixer and paid well over asking in a competitive situation, they restructured: about 10% down, financing the rest. The logic was liquidity. Putting less down kept more cash on hand for improvements instead of sinking it into the down payment. It worked for them because the buyer is a contractor by trade, planned to do much of the work himself, and the property sat on a large lot with real upside. A somewhat bigger mortgage, plus the mortgage insurance that comes with a lower down payment, was worth it to fund improvements that add value. The broader principle: sizing your down payment is a decision about the best use of your cash, and the lowest payment is only one of the possible answers. Financing more to preserve liquidity can be the smarter structure when you have a genuine, reliable plan for that cash. Without the plan, it is just a bigger loan.