For borrowers with good credit and some resources for a down payment, perhaps no other loan program is more advantageous than the 80-10-10 loan. Find out how it works in this month’s Mortgage Explainer video.

Full Transcript is Below:

– [Narrator] Coming up with the down payment on a new home may seem like a daunting task, but there are many options available to you. Of the different loan programs we offer, perhaps none is more advantageous to a first-time home buyer with good credit and some resources for a down payment than the 80-10-10 loan. An 80-10-10 loan is two loans rolled into one easy package and lets the borrower avoid paying private mortgage insurance, or PMI. With this conventional loan program, the home buyer borrows 80% of the purchase price as a first loan and 10% of the purchase price as a second loan. Therefore the home purchase only requires a 10% down payment from the borrower out-of-pocket. This allows for the first loan to meet the 20% equity threshold needed to avoid PMI, and while it’s not required to use the same lender for both loans, doing so may make for a more streamlined process, and typically just one application is needed. To learn more about the features and benefits of an 80-10-10 loan, or if you’re interested in our other low or no down payment programs, contact one of our licensed loan officers to find out which home loan best fits your financial situation.