80/10/10 "Piggyback" Loan

[Josie Shaw]

Does anyone have experience with an 80/10/10 "piggyback" loan (in the context of a house hack is even better)? I just heard about this financing option from a real estate agent and would be interested in hearing about your experiences! 

[Kevin Romines]

@Dwayne Bartoin Oops, I wasn't keeping tabs on this thread. Sorry it took me so long to respond. A HELOC is a 2nd mortgage lien. You can also use a closed end 2nd mortgage as well, but most borrowers want the advantage of having a line of credit as the 2nd.

So again, here is the structure:

1st Mortgage for 80% with no MI

2nd Mortgage or Heloc up to 90%

Your 10% down payment to make 100%

This structure, allows you to avoid MI, get the best rates and have a line of credit that can be used in the future to draw on if and when needed. 

I hope this helps?