A recent trend in real estate has Clark very upset. Lenders are now placing ads, offering to loan people more than 100 percent of the purchase price. One recent ad in a Virginia newspaper was offering 107 percent on a home. That is so dangerous. Clark does not recommend that you do 100 percent loans, much less 107 percent. He does like the piggy back loans where you take out two loans – one for 80 percent and another for 20 percent. That way you eliminate Private Mortgage Insurance or PMI. But it’s always better to have a down payment, even if it’s a small one. Think about it. You buy $100,000 home and take out this loan. You instantly owe $107,000 with this plan. So you’re years away from paying it off. There is always someone who will throw you more rope than you can handle. It’s a problem if you get in over your head and you lose your job or you have to move. So, save money for a down payment first. Secondly, buy less house than you qualify for. Clark recommends you step back 10 percent from the qualifying amount. So, if you qualify for a $100,000 home, buy a $90,000 home.