Why is my lender pushing so hard for Conventional and 20% down?

Don't know. You should ask your lender.

They are probably trying to keep you out of PMI and jumbo loan territory.

Sounds like your lender is giving you good advice

No pmi, best rate pricing on your mortgage.

Do you want the lowest rate pricing? You seem to think he's trying to lead you to something bad.

quote:

---

Risk. Housing is a little inflated. The less that you owe, the less of a risk for them if you default. Simple as that

---

I'm sorry but that is not how LO's operate. They care about their commissions, and that's about it. OP should ask for all available options and then make his decision instead of leaning on some LO for financial advice.

With rates so low, that down payment money would better serve you in higher yield investments

Well regulators may be tightening up as they know the economy is in a perilous place. Your lender may have restrictions on what the institution will allow risk wise as well. This is a dangerous economy right now.

You are correct that MI protects 25% of the lenders collateral.

But rate sheets dont normally reflect better pricing at 15% down versus 20% down.

You are correct that many preferred risk underwriters have the best pricing at 65% ltv for cashout and 75% for rate/term or purchase (reflecting the preferred risk level with 25-35% equity).