Good news for borrowers: banks are starting offer loans with down payments as low as 5%, helping homebuyers who do not have a lot of cash on hand: Per CNNMoney:

Now banks like TD Bank, Bank of America and Wells Fargo are loosening the purse strings, offering loans with down payments that are as low as 5%.

"As the FHA selectively reduced market share by increasing premiums, we introduced a substitute for FHA loans," said Malcom Hollensteiner, the director of retail lending sales for TD Bank.

While the private lenders that are offering the 5%-down loans are also requiring borrowers to buy private mortgage insurance, they are only requiring them to do so until they build up 20% equity in the home.