Although zero-down and low-down mortgages have gained popularity in recent years, another popular option is the loan type known as the 80-20 mortgage. With this type of mortgage, the borrower is actually taking out two distinct loans. One of the loans covers the twenty percent down payment that some lenders require, while the other covers the remaining 80% of the loan's principal. While it may sound complicated, one of the chief advantages of this type of lending configuration is that it can help prospective homebuyers avoid the burden of private mortgage insurance, or PMI. This can reduce the total amount of the monthly mortgage payment substantially, particularly for larger loan amounts. Although 80-20 loans remain popular with prospective homebuyers, the availability of this type of mortgage has diminished somewhat in over the past several years as a result of the ongoing economic crisis. Many lenders have imposed stricter criteria meant to ensure that borrowers will be able to meet their mortgage obligations, and having a sizable down payment is now more likely to be regarded as a non-negotiable part of the mortgage qualification process.