The main advantage of this type of Loan, also known as 0 down (Piggyback Loan), is the ability to buy a home with almost no money down. If you have a good Credit profile but have limited funds to commit to a Down Payment, then 80/20 Mortgage is just right for you.

Are you looking for one hundred percent(100%) financing or Zero Down to purchase your new home?

Lenders typically require a down payment of at least 20 percent of the Purchase Price. If the Loan amount is for more than 80 percent of the purchase price, private mortgage Insurance (or PMI) is usually required. You can avoid paying PMI by getting a Second mortgage ('piggyback loan') to back up your First Mortgage.

The first mortgage is provided for 80 percent of the cost of the home and the 'piggyback' second mortgage is for the remaining 20 percent.

The 80 percent first mortgage can be a fixed-rate (15-year or 30-year), adjustable-rate (usually 5/1, 7/1 or 10/1 fixed period ARM) or Interest-only loan.

The 20 percent second mortgage can be a home Equity Line of Credit that changes with the Prime Rate.

Combined, the two loans allow you to purchase 100% of your home with no money down.

• Zero down payment or 100% financing - either a 1st mortgage exclusively or a combination of a 1st and 2nd mortgage* (sometimes referred to as a piggyback mortgage).

Advantages to 100 percent financing:

• No Cash needed for down payment
• Don't need to liquidate stocks and other investments 

• Property must be owner occupied
• Fico Score 620
• Normally requires the use of both a first mortgage and a second mortgage
• Debt ratios of 45 or less