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Florida 80-10-10 Piggyback Second Mortgage Financing Loan

What is an 80-10-10 Piggyback Second Mortgage Loan and how does it work?

An 80-10-10 Piggyback Second Mortgage Loan allows customers to make home ownership a reality with as little as 10% down. The 80 10 10 Piggyback Second  Mortgage Loan consists of a first mortgage for 80% or more of your home’s value or sales price with a variable rate second mortgage as a piggyback loan of 10%.

What are the benefits of doing an 80-10-10 Piggyback Second Mortgage Loan?

  • It’s a great way to avoid paying mortgage insurance (PMI).
  • Great option to avoid a Jumbo Mortgage and the strict underwriting and reserve requirements.
  • We use the second mortgage to get primary residence & second home condo loans approved and for single-family residential mortgage loans when you don’t meet the jumbo credit score or reserves requirements. 
We offer 2 types of Second Mortgages, one is a 30 year fixed rate second mortgage and the other is an interest only Piggyback Second Mortgage Loan

Here are the details of the interest only 2nd mortgage loan

  • A 30-year mortgage with no prepayment penalties.
  • Interest only payments for first 10 years and then it amortized over a 20-year principal and interest payment schedule.
  • It is an adjustable rate mortgage that is based on the current prime interest rate plus .99% to 1.99%  depending on your loan to value.
  • 700 Minimum credit score is required.
  • Max debt to income ratios is 38% for housing expense and 45% of all expenses.

Here are the details of the 30 year fixed rate 2nd Mortgage Loan

  • 30 year fixed rate mortgage with no prepayment penalties.
  • 720 credit score required for 10% down payment.
  • 680 credit score required for 15% down payment.
  • No Gift funds allowed.
  • First-time homebuyers need 24 months of verified rental history.
  • No mortgage late payments in the last 24 months.
  • Bankruptcy Chapter 7, 4 years from discharge date and Chapter 13, 2 years from discharge date.
  • No foreclosures in the last 7 years.
  • Max debt to income ratios is 35% for all expenses.

We only offer second mortgages for purchase and refinance transactions and not as a line of credit for current homeowners.

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