The 20% down payment needed to purchase a home can be very difficult for some first time buyers to come up with. Quite often, it will be necessary for the homebuyers to get some type of private mortgage insurance in order to buy their house. Private mortgage insurance can be of great assistance in bypassing this first obstacle in your transaction, but it can create others. Your house payments will be higher each month and you won’t be able to deduct the difference when you file your taxes. While most homebuyers would like to avoid these problems and the 20% down payment, how do they avoid using private mortgage insurance?