80 20 home loan is a combination of two loans that forms a 100% financing in buying a house. The aim of this financing plan is to avoid the private mortgage insurance. The first of the two loans is derived from 80% of the value of the house to be financed. Another loan is taken to cover for the remaining 20%. The second loan is used to finance the down payment required to own the property. This second loan usually has a higher rate.  80 20 home loan equates to a 100% no down payment loan but the rate taken from the average of the two is lower than that of the 100% loan.