Down Payment

Just a thought.

A buyer doesn't have 20% down, so why not just put 3.5% down?

Anything less then 20%, the buyer must pay mortgage insurance, so he/she ends up with several hundred dollars a month additional to pay on a monthly basis.

I'd almost think, if you are only putting 10% down, you might as well get and FHA loan, only put down 3.5% and save some of your money for reserves and or emergencies. Yes, I recognized that the monthly mortgage payment may be a little more, but I feel pretty strongly about having money in reserve.

Thoughts?