What is a Piggyback Loan? A piggyback loan is a combination of two loans that close at the same time to purchase a home. The most common piggyback loan is an 80/10/10.
80 percent of the home’s value is financed through a first mortgage. The remaining 20 percent is equally divided between a second, piggyback loan and the down payment.
Or an 80/20, where the buyers have no down payment, and no personal mortgage insurance, or even better, an 80/20+20: buyers not only put nothing down, but take a home equity loan (on non-existent equity) for an additional 20%—`walking around’ money, I suppose.
‘Creative Financing 101 for Sub-prime Borrowers’
(And of course there’s always Chapter 13 bankruptcy.)
they even want to waive the 3% down for this rescue package!