The Private Mortgage Insurance companies are slowly starting to open up. They now will allow 3% down or 97% loans again with PMI in the Chicago area MSA.. That is an improvement in that the view is values are no longer dropping generallyhere to the point where the PMI companies have the fear of losses on such loans. The rates for the PMI will be more expensive than with higher down payments but that is how they measure risk and reward. I see the big advantage being that no longer is an FHA approval of an entire condo building needed to offer low down payment mortgages. An FHA approval costs the condo association and for one sale may not be worth it so many have not done FHA approvals of their buildings to allow a 3.50% down payment FHA loan. I can show Realtors how to better market listings in non-FHA approved condo buildings with this new 3% down option with PMI.