Who it is for
- Buyers with 10% down who want to avoid monthly PMI
- High-income borrowers with strong credit seeking better pricing tiers
- Buyers in high-cost areas where 20% down is a stretch
- Borrowers comparing second-lien interest vs. PMI cost (consult a tax advisor)
Typical 80/10/10 Piggyback Loans requirements
| Structure | 80% first mortgage + 10% second lien + 10% down payment |
|---|---|
| PMI | None, first mortgage at 80% LTV avoids it |
| Second lien | Fixed home equity loan or HELOC; often adjustable |
| Credit | Strong credit typically required (often 700+) |
| Reserves | Lenders often want 6+ months reserves |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Get approved for both liens, sometimes with the same lender, sometimes with two.
- The first mortgage is underwritten at 80% LTV: no PMI, best conventional pricing tiers.
- The second lien (10%) closes simultaneously; its rate is higher and may be adjustable.
- Your blended payment is the first mortgage payment plus the second-lien payment.
- Many borrowers aggressively pay the second lien first, then enjoy a single 80% LTV mortgage.
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Pros and cons
Advantages
- No monthly PMI
- First mortgage gets 80%-LTV pricing, often the best rate tier
- Second-lien interest may be tax-deductible (consult a tax advisor)
- Faster path to a single mortgage by targeting the smaller second lien
Trade-offs
- Two payments, two liens, more complexity at closing
- Second-lien rates run higher and HELOCs can adjust upward
- Stricter credit and reserve requirements than a single 90% loan
- If home values fall, you owe on two liens against one property
Documents you’ll need
- Standard purchase documents for the first mortgage
- Second-lien application and disclosures
- Proof of 10% down payment funds
- Reserve documentation (often 6 months)
80/10/10 Piggyback Loans FAQ
Is 80/10/10 cheaper than one loan with PMI?
Often yes for strong-credit borrowers: the blended rate of an 80% first plus a 10% second frequently beats a 90% first mortgage plus monthly PMI. Run both scenarios, the answer depends on the second-lien rate you are offered.
Can I do 80/15/5 with only 5% down?
Some lenders offer 80/15/5 structures, but they are less common and the second lien is larger and pricier. Most piggyback activity is 80/10/10.
What happens to the second lien if I refinance?
The second lien must be subordinated (stay in second position) or paid off at refinance. Some second-lien holders charge subordination fees or refuse, check before you need it.
What credit score do I need for a piggyback?
Usually 700+, with the best second-lien pricing at 740+. Piggybacks are a strong-credit product.
Is the second lien fixed or adjustable?
Either. Fixed-rate home equity seconds are common; HELOCs are adjustable and can rise. Know which one you are getting before closing.
Can I get a piggyback on a condo?
Yes, on warrantable condos. Non-warrantable condos and some co-ops are harder to piggyback.
How much can I save vs. paying PMI?
It varies, but strong-credit borrowers often save $100-$300 per month vs. a 90% loan with PMI. The bigger win is the 80% first-mortgage rate tier.
Do I need reserves for a piggyback?
Usually yes, lenders often want 6 months of reserves covering both payments. Some want 12 months on larger loans.
Can I pay off the second lien early?
Yes, and many borrowers do exactly that. Knocking out the smaller second lien first leaves you with a single 80% LTV mortgage. Check for prepayment penalties first, most seconds have none.
How 80/10/10 Piggyback Loans compare
| 80/10/10 Piggyback Loans | Conventional Loans | Jumbo Loans | HELOCs & Home Equity Loans | |
|---|---|---|---|---|
| Best for | Buyers with 10% down who want to avoid monthly PMI | Buyers with good credit and steady income | Luxury and high-cost-market purchases | Owners with a low-rate first mortgage |
| Down payment | , | 3% (eligible first-time buyers), 5%+ otherwise; 15–25% on investment property | Typically 10–20% | , |
| Credit | Strong credit typically required (often 700+) | 620 | Typically 680–720+ | , |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
Jumbo Loans
A jumbo loan is a mortgage larger than the FHFA conforming loan limit for your county, used for higher-priced homes.
HELOCs & Home Equity Loans
A HELOC (home equity line of credit) and a home equity loan both let you borrow against your home while keeping your current first mortgage.