The main advantage of this type of loan, also known as 100% Financing, is the ability to buy a home with no money down. There are two options in structuring a 'No Money Down' loan:
A) 100% financing in one loan, which usually requires Mortgage Insurance.
B) Two loans, otherwise known as an 80/20, with no mortgage insurance. Combined, the two loans allow you to purchase 100% of your home with no money down.
