<prompt> Human: Were shooting for a 1.2M property, and we have around 220K saved for downpayment closing costs, so we dont quite have the 20 required for a Jumbo loan. More like 17-18.I hear it is possible to do a conventional loan with less than 20 down, caveat is you pay PMI until you reach 20 equity. Is this possible with a jumbo loan too?The lender suggested another solution, The first scenario is a 20 jumbo loan scenario. The second scenario is a 15 down paymentcombination loan scenario. In this option, you would put down 15 instead of 20. We would do an 80 1st Mortgage, and then do a 5 2nd mortgage, and you put down 15. The 1st would be a 30 year fixed loan. The 2nd could be either a home equity line of credit, or it can be a fixed ratefixed term loan 5-20 year options.I understand there are buig benefits to avoiding FHA or ARM loans, but I dont fully understand this solution, is there a catch here, other than the fact that the smaller loan might have a really high interest rate? Also, how would having this second line of credit open affect my credit score?Thanks,Ady  <response>: My experience is that once you are over the 15 downpayment threshold the PMI is pretty de minimis. Maybe there is a mortgage broker on here who can answer this but I would assume that once your house was at an 8020 LTV to get rid of the 5 second mortgage assuming it has not already been paid off would require you to refinance and incur fees and closing costs, plus risk a high overall interest rate.Between the two options my gut tells me to take the PMI because in the long run I think it will cost you less. 