80/20

What is an 80/20 Mortgage Loan Program?

A type of no-money-down mortgage loan that uses two concurrent loans in a piggyback arrangement. With a first mortgage loan for 80% of the purchase price (or appraised value) and a second mortgage equal to 20% of the purchase price (or appraised value), the borrower obtains 100% financing.

By keeping the first mortgage loan at 80% LTV (or below), the borrower is able to avoid private mortgage insurance (PMI).

For more information, see also the following entries:

  • :Appraisal:
  • :Appraised Value:
  • :Concurrent Loans:
  • :Creative Financing:
  • :D own Payment:
  • :First Mortgage Loan:
  • :Loan-To-Value Ratio:
  • :No Down Payment Loan:
  • :P iggyback Loan:
  • :P rivate Mortgage Insurance:
  • :P urchase Loan:
  • :P urchase Price:
  • :Second Mortgage:


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