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With the 20% down, you can avoid PMI and escrow.

Or one can look at "combo loans". If one searches for "combo loans", "80/20", "80/10/10" and the like on the Buying And Selling A Home board, one would see combo loans discussed fairly frequently.

Combo loans are offered by mortgage brokers, but seldom by banks and more traditional lendors. The idea is that the first mortgage is for 80% of the fair market value so one can avoid PMI and decide on whether to have an Escrow Account. The second loan, usually at a higher interest rate and often for a shorter period of time, takes care of the part between 80% FMV and the down payment one is making. Usually (but not always) the tax deduction makes the second mortgage more advantageous than paying (non-deductable) premiums on the Private Mortgage Insurance.
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