With some creative home financing, lenders are offering competitive rates and flexible mortgage programs to provide a range of financing options for new home buyers and current home owners.   

One of these options is a 100% home financing program for buying a new home or refinancing. This can be an excellent loan program if you are wanting to buy a home, but your savings balance is lacking a couple of zeros, or you are looking for a high loan to value refinance.  

It usually works by financing a first and a second mortgage that close concurrently, or at the same time, when you are buying a home. The first mortgage would cover 80% of the home price, while a second mortgage, or a home equity credit line would finance part or all of the remaining amount. 

In home financing terminology, a piggyback loan can include an 80-20 loan program, which means an 80% first mortgage plus a 20% second mortgage, an 80-15-5 loan, which requires a 5% down payment, or an 80-10-10 loan , which requires a 10% down payment.  

With this type of home financing, there is no mortgage insurance, which is usually required by the lender when your loan to value is more than 80%. While providing an opportunity to buy or refinance your home with little or no equity, another benefit is the interest paid on a second mortgage or home equity credit line can be tax deductible, while the payments you would have made for mortgage insurance are not deductible.