Piggyback Loans – A Smart Strategy for Avoiding PMI

Introduction: Welcome to the Piggyback Loan section at VALoanGuyUSA.com. Piggyback Loans offer a creative solution for homebuyers looking to avoid paying Private Mortgage Insurance (PMI) when they don’t have a 20% down payment. This financing strategy combines two mortgages into one seamless process.

What is a Piggyback Loan? A Piggyback Loan, also known as an 80/10/10 loan, involves taking out two mortgages simultaneously. The first mortgage covers 80% of the home’s value, the second mortgage covers the next 10%, and the final 10% is covered by your down payment. This structure allows borrowers to avoid PMI without a 20% down payment.

Benefits of Piggyback Loans:

  • Avoid PMI with less than 20% down.
  • Potentially lower combined monthly payments compared to a single mortgage with PMI.
  • Flexibility in structuring your home financing.

Ideal Candidates for Piggyback Loans:

  • Homebuyers with good credit but less than 20% for a down payment.
  • Those looking to purchase a home without tapping into savings extensively.
  • Buyers in high-cost markets.

How Piggyback Loans Work:

  • First Mortgage: Typically a conventional loan covering 80% of the home’s purchase price.
  • Second Mortgage: Can be a home equity loan or line of credit covering 10%.
  • Down Payment: The remaining 10% of the purchase price.

Applying for a Piggyback Loan:

  1. Assess your financial situation: Ensure this strategy aligns with your goals and financial health.
  2. Get pre-approved: Understand how much you can afford and demonstrate your seriousness to sellers.
  3. Choose the right lenders: We help connect you with lenders experienced in structuring piggyback loans.
  4. Finalize your loans: Work with your lenders to complete both mortgage applications.

Why Choose VALoanGuyUSA.com: Our expertise in unique financing solutions, including piggyback loans, ensures you have the best options for your home purchase. At VALoanGuyUSA.com, we offer:

  • In-depth knowledge of various loan structures.
  • Personalized service to align your financing with your homebuying goals.
  • Access to a wide range of lenders offering piggyback loan options.


  • Q: Are interest rates higher for the second mortgage in a piggyback loan?
  • A: The interest rate on the second mortgage might be higher than the first mortgage but can still result in overall savings compared to paying PMI.
  • Q: Can I pay off the second mortgage early?
  • A: Yes, there’s often the flexibility to pay off the second mortgage without prepayment penalties.

Contact Us: Interested in learning more about Piggyback Loans and how they can benefit your home purchase? Visit us at VALoanGuyUSA.com. For a personalized consultation, call us at 760-350-3989 or fill out our online contact form.