| If you have been holding off purchasing your home | | | | and the remaining 20 percent will be from a second |
| because you don't have the cash on hand for a down | | | | lender. Because you are taking out two loans to fund |
| payment, there are programs to help you qualify for | | | | the purchase of your home, you will have two monthly |
| the home loan. The most popular no money down | | | | payments to make. |
| program is the 80/20 or "piggyback" loan. Here are the | | | | Because you will have the necessary down payment |
| basics you need to know about no money down | | | | in the form of your "piggyback" loan, you will qualify for |
| home buying that will help save you money. | | | | a better interest rate on your primary mortgage loan. |
| No money down mortgage loans have been around | | | | The interest rate on your second loan will be higher |
| for sometime now; however, these loans have had a | | | | because this lender assumes more risk than your |
| major disadvantage in that the lenders would require | | | | primary mortgage lender. There are options available |
| you to purchase Private Mortgage Insurance as a | | | | for the piggyback loan; you may have the choice of |
| condition of approval for the loan. Private Mortgage | | | | interest only payments, an adjustable interest rate, and |
| Insurance is expensive and does nothing to protect the | | | | a home equity line of credit for this loan. If you choose |
| homeowner, only the mortgage lender. | | | | one of these options for your second loan you may |
| 80/20 mortgage loans do not require the borrower to | | | | have to pay a higher interest rate, so it pays to shop |
| purchase private mortgage insurance. The reason for | | | | around before choosing a lender. You can learn more |
| this is that when you borrow with an 80/20 mortgage | | | | about your home loan options by registering for a free |
| you are actually taking out two loans. Your primary | | | | home loan guidebook. |
| mortgage will be for 80 percent of the purchase price | | | | |