Sellers are luring buyers through goodies in order to get them back into the market place in the form of free upgrades but at the end of the day it boils down to whether the prospect commands enough money for monthly installments.



Earlier people used to opt for piggyback loans, a package of mortgage under which there was a first lien at 80% of the property’s selling price and second lien for the remaining 20% depending on how much money one could put in the deal. Now with a rise in mortgage rates and slower appreciation this option is not looking good.



Loan with private mortgage insurance is a good option and this has enabled people who are considered to be high risk borrowers by lenders to become homeowners. This type of loan protects lenders against defaulters who don’t have 20% down payment and history has been witness to the fact that borrowers who don’t even possess this much are quite risky therefore insurance makes up the difference between what lenders require to feel safe and what borrowers possess.