Many of our state agency clients have trouble marketing their mortgage programs in rural areas because the properties do not qualify for FHA mortgages. Borrowers are forced to turn to conventional mortgage loans with their higher down payment requirements and PMI requirements. To address this need, our firm is able to structure a first and second mortgage combination where the first mortgage is limited to 80% of the purchase price of the home. Combined with this first mortgage, a second mortgage is structured to provide the balance of the financing required. Because the first mortgage is only 80% of the purchase price, the PMI requirement is eliminated making a borrower’s total monthly mortgage payment lower than their payment would have been if they had obtained an FHA loan.