This type of loan is ideal for first-time homebuyers. Although most commonly used for purchase transactions, 100% financing is also a popular choice for refinance loans because it allows borrowers to use more of their equity than traditional loans to maximize debt consolidation and monthly savings. 100% financing typically combines two loans:  An 80% first mortgage, and a 20% second mortgage. There are also 100% loans available as a single mortgage; however, rates are not always as competitive.  After reviewing both options, we will recommend whichever best suits your situation.