80/10/10 Piggyback Loan Program
Piggyback Mortgage Loan Program in Hoboken, NJ – Serving California, Colorado, Connecticut, Florida, Georgia, Maryland, New York, New Jersey, Pennsylvania, Rhode Island & Washington D.C.
This program, often referred to as the 80/10/10 Piggyback, allows buyers to put down 10%, obtain an 80% first mortgage, and take a 10% second mortgage, covering the purchase price. The 80/10/10 Piggyback is simple on the surface, but must be executed carefully; otherwise, the benefit becomes a drawback. It’s called a piggyback loan because one loan “sits on top of” the other loan. Northstar Funding loan professionals will secure the best possible rate and term on the first mortgage, then find a 2nd mortgage with equally attractive terms. Many 2nd mortgages have balloon payments after a few years, which may not work for all borrowers, especially when considering the piggyback approach.
Careful planning, attention to detail, and putting a pencil to paper will help work out all the options for the 80/10/10 Piggyback. After reviewing all the different ways to structure the deal, the borrower can select the option that’s best for their piggyback mortgage.
BENEFIT
The benefit of the 80/10/10 Piggyback is the elimination of mortgage insurance (PMI), which is a significant savings for buyers. An 80/10/10 approach effectively minimizes PMI.
AVAILABILITY
This program is available for purchases and refinances with a minimum credit score of 700. Eligible properties are 1- to 2-family primary residences and condos. It offers flexibility for those considering the piggyback mortgage strategy.
- Combined loan amounts up to $750,000 qualify for 90% financing through our 80/10/10 program, showcasing the strength of the piggyback.
- Combined loan amounts up to $1,275,000 qualify for 85% financing through our 80/5/15 program.
We use the same appraisal for both loans. There are no condo questionnaires for the 2nd mortgage. If you need any more information, please contact Northstar Funding about the advantageous piggyback plan.