Just because you have the funds to put 20% down doesn't always mean you should. If you have a great credit profile, PMI might not be that big of an expense, and it could enable you to put that savings into an investment account where it can earn you money. You also want to be careful about draining your savings for a down payment, since you'll likely need that money for home maintenance and repairs. Additionally, if you don't have a 20% down payment already saved up, waiting to buy a house until you do means you'll spend that time missing out on growing your wealth through appreciation, since home values typically rise over time. If you're worried about PMI costs due to poor credit, consider whether an FHA mortgage might be more affordable for you.