If you are considered to be a new home buyer, or someone that has not purchased a home in the last three years then you might want to 
strongly consider looking at 95% mortgages. These are actually a very good fit for many individuals that are living in the UK or for individuals that live in California. Therefore, you might want to consider looking into these as well.
Now, there are a few things and steps for financial planning that you will want to consider with these types of loans. First of all, you will need to come up with a down payment of 5% of the loan. That is why it is considered a 95% mortgage. That is what you are actually taking a loan on and you need to pay the other 5% up front. While this might sound attractive in the beginning, you may also be expected to pay a very large amount of money onto the end of the loan. This really adds up, especially for someone that is new to the process and has never received a home loan before.
Another downside to consider would be the fact that the overall interest rate that you will be expected to pay could be very high. This can be seen when you compare this type of a loan to another loan where you might need to make a larger down payment. This means that you will be paying more than the average person with the same loan amount because of the interest rate. You might not be able to borrow as much as you would like with a loan like this as well.
As you can see, there is a lot to consider when it comes to these types of loans. It really does depend on you and what your needs are. However, you need to make sure that you are considering all of the pros and cons before you make any final decisions.