Piggyback Loan (80/10/10)
"Skip PMI with a smart structure."
Combine a first mortgage with a second mortgage to avoid PMI, even with less than 20% down. The 80/10/10 structure saves you money every month.
3%
Min Down
680+
Min Credit
$766,550
Max Loan
Is This Loan Right for You?
This Loan is Perfect If You...
- Have 10-15% down payment available
- Want to avoid paying PMI entirely
- Have good credit (680+ score)
- Comfortable managing two loan payments
- Want maximum tax deduction flexibility
This Might NOT Be Right If...
- Have less than 10% down payment
- Prefer simplicity of a single loan
- Credit score below 680
- Planning to pay down mortgage quickly
Piggyback Loan (80/10/10) Benefits
Everything you need to know about your benefits
No PMI
Skip private mortgage insurance entirely by keeping first mortgage at 80% LTV
Monthly Savings
Save $183+/month compared to a single loan with PMI
Better First Rate
80% LTV qualifies you for the best first mortgage rates available
HELOC Flexibility
Use a HELOC for flexible access to your home equity
Pay Off Second Early
Aggressively pay down the second mortgage to save on interest
Tax Advantages
Both loan interest payments may be tax deductible (consult CPA)
How It Works
Your path to homeownership in just a few simple steps
Calculate Your Structure
Determine your down payment amount and choose the right piggyback structure (80/10/10, 80/15/5, or 80/5/15).
Get Approved for Both
Apply for simultaneous approval of both first and second mortgages with coordinated underwriting.
Close Together
Both loans close at the same time with one closing appointment—streamlined and efficient.
Manage Two Payments
Pay your first and second mortgages separately each month. Set up autopay for convenience.
Calculate Your Structure
Determine your down payment amount and choose the right piggyback structure (80/10/10, 80/15/5, or 80/5/15).
Get Approved for Both
Apply for simultaneous approval of both first and second mortgages with coordinated underwriting.
Close Together
Both loans close at the same time with one closing appointment—streamlined and efficient.
Manage Two Payments
Pay your first and second mortgages separately each month. Set up autopay for convenience.
Types of Piggyback Loan (80/10/10)
Choose the option that fits your situation
80/10/10
80% first mortgage, 10% second mortgage, 10% down payment. The classic piggyback structure for buyers with 10% down.
80/15/5
80% first mortgage, 15% second mortgage, only 5% down. Requires less cash upfront for buyers with limited savings.
80/5/15
80% first mortgage, 5% second mortgage, 15% down. Minimizes second mortgage costs for buyers with more down payment.
Things to Consider
A reverse mortgage is a significant financial decision. Here's what you should understand before proceeding.
Two Payments
You will have two separate monthly payments to two different servicers. Set up autopay for both to avoid missed payments.
Higher Combined Rate
The second mortgage rate is typically higher than the first. Run the math to ensure savings vs PMI makes sense for you.
HELOC Rate Risk
If you choose a HELOC, the rate can adjust over time. Consider a fixed second if rate stability matters to you.
HUD-approved counseling is required to ensure you fully understand these factors before proceeding.
Monthly Cost Comparison
| Single Loan + PMI | Piggyback 80/10/10(This loan) | |
|---|---|---|
| First Mortgage | $450,000 | $400,000 |
| Second Mortgage | — | $50,000 |
| Monthly P&I (1st) | $2,994 | $2,661 |
| Monthly P&I (2nd) | — | $375 |
| Monthly PMI | $225 | $0 ✓ |
| Total Payment | $3,219 | $3,036 ✓ |
| Monthly Savings | — | $183/month |
* Rates and terms subject to change. Contact us for current offers.
Frequently Asked Questions
Common questions about Piggyback Loan (80/10/10)
Last updated:
What is a piggyback loan?
A piggyback loan combines two mortgages taken out at the same time to avoid PMI. The most common structure is 80/10/10: an 80% first mortgage, a 10% second mortgage, and a 10% down payment. Since the first mortgage is only 80% LTV, no PMI is required.
Is a piggyback loan better than paying PMI?
Usually yes, if you have good credit (680+). PMI can cost $150-$300/month and provides no benefit to you—it protects the lender. A piggyback structure eliminates PMI entirely, and the interest on the second mortgage may be tax-deductible. Run the numbers for your specific situation.
What credit score do I need for a piggyback loan?
Most lenders require a 680+ credit score for piggyback loans. The second mortgage lender is taking on more risk, so requirements are slightly higher than a standard first mortgage. Higher scores get better rates on both loans.
- Yes! Many borrowers aggressively pay down the second mortgage first since it typically has the higher interest rate. Once paid off, you are left with just the first mortgage at a great rate. Most second mortgages have no prepayment penalties.
- A HELOC (Home Equity Line of Credit) has a variable rate and works like a credit card—draw what you need, pay interest only on what you use. A fixed second has a locked rate and fixed monthly payment. Choose a HELOC for flexibility or a fixed second for predictability.
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
Skip PMI. Keep Your Money.
See if a piggyback structure works for you
Or call us directly: (757) 558-2603