Home equity loan Things to consider
80/10/10 loans work on the principle that the bulk of the selling price of the home is paid for through the first mortgage, with 10 percent being paid off with a down payment, and the remaining 10 percent being paid off with another mortgage. You may also pay off the 20 percent down payment with an FHA loan that you secure from the government. This last alternative will still require you to pay for insurance, but in most cases a down payment of as little as 3 percent will suffice. What about putting down no money at all? There are actually some financing plans available that will allow you to pay for the full cost of the home without having to pay any down payment. The downside is that these types of financing plans will entail much higher interest rates than typical mortgage arrangements.