PiggyBack Loan: A Smart Way to Avoid PMI and Reduce Your Down Payment
Program Summary
A PiggyBack Loan is a second mortgage taken out at the same time as your primary mortgage. This innovative financing solution helps borrowers avoid Private Mortgage Insurance (PMI) while reducing their down payment. Typically structured as an 80-10-10 loan (80% primary mortgage, 10% second mortgage, and 10% down payment), a PiggyBack Loan is ideal for borrowers looking to save on upfront costs and monthly payments.
Key Benefits
- No PMI: Avoid paying costly Private Mortgage Insurance even with less than 20% down.
- Lower Down Payment: Reduce the amount of cash needed upfront for your home purchase.
- Flexible Financing: Use the second mortgage for other financial goals, like home renovations or consolidating debt.
Program Details
- Structure: Commonly structured as an 80-10-10 or 80-15-5 loan, depending on borrower needs.
- Eligibility: Requires good credit and sufficient income to qualify for both loans.
- Loan Types: The second mortgage can be a HELOC or Home Equity Loan, with either fixed or variable rates.
Who Is This Program Best For?
- Homebuyers looking to avoid PMI with less than 20% down.
- Borrowers with strong credit who want to reduce upfront costs.
- Buyers in competitive markets needing creative financing solutions.
Next Steps
Discover how a PiggyBack Loan can help you achieve your homeownership goals. Contact us today to learn more and explore your options!