With some creative home financing, lenders offer up to 100% loan to value for buying a home. This is great news if you are looking at buying a home, but your savings balance is lacking a couple of zeros. Also, with this type of home financing, there is no mortgage insurance, which is usually required by the lender when your down payment is less than 20% of the home price.

It works by financing at 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, the options for a "piggyback loan" for buying a home include: an 80-20 loan, which means an 80% first mortgage plus a 20% second mortgage; an 80-15-5 loan, which requires a 5% down payment; an 80-10-10 loan, which requires a 10% down payment.

In addition to providing an opportunity for buying a home with a limited, or no down payment, another benefit to this combination of home financing, is that interest paid on a second mortgage or equity credit line can be tax deductible, while the payments made for mortgage insurance are not.

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