If you have been putting of your home purchase because you lack the necessary down payment to qualify for a traditional mortgage, there are now many options available to help you qualify. The best option for many people in this situation is the 80/20 mortgage, also known as a “piggy back” loan. Here are the basics to help you decide if this loan option is right for you.

What Are 80 / 20 Mortgage Loans?

80/20 mortgage loans are a simple concept to wrap your head around. In days past, if you were trying to purchase your home without the necessary 20% down payment the mortgage lender would require you to purchase Private Mortgage Insurance (PMI). This costly insurance could raise your monthly payment amount by as much as $200 per month and did nothing to protect the homeowner whatsoever.

One of the main advantages of an 80/20 mortgage is that you will not be required to purchase Private Mortgage Insurance. 80/20 mortgages are actually two loans, one for 80 percent of the purchase price, and another for the remaining 20 percent.

How Do You Qualify for an 80/20 Mortgage?

If you are shopping for an 80/20 loan, your mortgage will most likely be handled by two lenders. Mortgage brokers can be especially helpful in locating piggyback loans; however, it is important to shop from a variety of piggyback lenders to find the most competitive offers. Qualifying for a piggyback loan is easier than you think, even if you have poor credit. You can learn more about your piggyback loan options, including common mistakes to avoid by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Source: www.articlesphere.com