Is A Piggyback Mortgage Right For You?
We host a variety of products that can help suit your individual needs. Some of the benefits are:
LOW DOWN PAYMENTS
Our Piggyback loans allow you to preserve liquidity with low down payments of only 5% on a home purchase.
MORE CASH OUT
Unlock your equity with up to 95% total financing with a cash out refinance plus a post-closing home equity line.
AVOID JUMBO LOANS
By keeping your first mortgage under the conventional loan limit, our Piggyback loans can help you avoid Jumbo mortgage requirements and higher rates.
NO MORTGAGE INSURANCE
Save money and avoid costly mortgage insurance (PMI) by combining an 80% 1st mortgage with a 2nd mortgage or HELOC.
LARGER LOAN AMOUNTS
Your piggyback mortgage can be up to $250,000, with no limit on the total of the two mortgages.
ANY OCCUPANCY TYPE
Our Piggyback mortgages can be used for primary residences, second homes, or investment properties.
What My Clients Have To Say:
"Interfirst and Jim provided us an enjoyable experience. Jim was great. Really easy to work with, not pushy at all, like some other lenders. Extremely responsive and helpful. Would definitely go back to him.
His style meshed well with me since I've been through this before. Might be a little too hands-off for a first-time home buyer, but I loved it. He got me a low rate and the lowest closing costs I could find. Hard not to be happy!"
"Jim made the entire process quick and easy. He was responsive to everyone of our requests and provided updates even on the weekends. We truly appreciate you're commitment to us from the very start."
"James was very easy to work with. He talked in a smooth easy to understand manner He made sure that I understood what he was telling me about the loan process. He was easy to get a hold of if I ever had any questions. He was extremely knowledgeable in all phases of the finance business. It was a pleasure to have James handle my financial needs. You are fortunate to have James in your employ ."
Getting a Loan with Jim Machometa
is as Simple as 1, 2, 3...
Schedule a Consultation
Schedule time on my calendar so I understand your goals and help create a plan.
Know Your Options
Discover what options are available to you and have confidence knowing your income has been reviewed up front.
Close Your Loan
Relax as I guide you through a stress-free loan process so you can close on time.
What is a piggyback loan?
A piggyback loan allows you to buy a house using two mortgages at the same time. This can provide advantages such as a lower down payment, avoiding private mortgage insurance (PMI), and avoiding a jumbo loan.
Piggyback loans usually include three separate parts (80/10/10):
- A first mortgage comprising 80% of the price
- A second, “piggyback” mortgage comprising 10% of the price
- The remaining 10% of the home price covered by your down payment
LoanBud offers piggyback loans up to 95% loan-to-value, where the primary mortgage covers 80% but the second mortgage covers 15%, allowing for only a 5% downpayment (80/15/5)
In most cases, the primary mortgage will be a conventional 30-year fixed rate mortgage and the piggyback mortgage will be a home equity line of credit (HELOC). Many lenders will require you to take out private mortgage insurance (PMI) if their down payment is under 20% of the total cost of home. Piggyback loans can help eliminate PMI requirements, which makes them an attractive option if you're looking to avoid additional fees and charges.
What is the difference between a jumbo and piggyback loan?
Most jumbo loans require larger down payments of 20% or more. LoanBud's 80/15/5 or 80/10/10 Piggyback mortgages can be used to avoid jumbo loans by obtaining a 1st mortgage up to the county loan limit along with a 2nd mortgage or HELOC. This strategy allows you to effectively obtain a jumbo mortgage with as little as 5% down. By putting less down, you can keep your money in the market, use it for renovations, or have a bigger safety net.
LoanBud Piggyback mortgages can also be used as a refinance to maximize cash out.
Cheaper Than FHA
Although FHA loans allow a low down payment of 3.5%, it comes with a steep price tag. For example, you are charged an upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan amount, a closing cost that gets rolled into the mortgage.
FHA borrowers also pay a monthly mortgage insurance premium (MIP) which is typically .85% (annual fee, paid monthly) for the life of the loan.
LoanBud Piggyback loan allows you to avoid both of these costs, saving you thousands of dollars in both closing costs and monthly payments.
What are the loan requirements & qualifications for a piggyback loan?
When applying for a piggyback mortgage, you are typically applying for two loans at one time, making qualifying a bit harder than for a single conventional mortgage. However a piggyback loan can offer cost saving advantages for those who can qualify.
Here is some of the criteria you may need to meet in order to qualify for a piggyback loan:
- A credit score over 680, ideally over 700
- A debt-to-income ratio under 43%
- Two monthly payments
- Two interest rates, different sets of terms
Who is a good candidate for a piggyback loan?
Piggyback loans are most common when buying a higher value home, but you want to avoid a large down payment. For some buyers, a piggyback home loan is the best option available, but not for all.
Piggyback Loans are best if you:
- Have good credit (at least 680 FICO)
- Want to put less money down to preserve liquidity
- Want to avoid private mortgage insurance (PMI).
- Want to avoid a jumbo loan due to the strict qualifying requirements
Schedule a consultation with one of our experienced loan officers to determine if a piggyback loan is right for you.
How can I avoid paying mortgage insurance (PMI)?
Yes, there are two ways to refinance a piggyback loan.
If you have enough equity, you can pay off your second loan at the time you refinance, allowing you to consolidate loans into one.
The second option is to refinance your first mortgage and leave your second mortgage (the smaller “piggyback loan”) untouched. This option will require the approval of your second mortgage lender.
How do I get a piggyback loan?
To get a piggyback loan we recommend you will first speak with a loan officer with experience handling piggyback loans. You will need to apply for a primary mortgage to cover 80% of the home's value. You’ll then need to apply for a secondary, “piggyback”, mortgage. Schedule a consultation to speak with a LoanBud loan officer and learn more about the process of applying for a piggyback loan.
How Can You Purchase Your Home With A Piggyback Mortgage?
At LoanBud, we know you are the kind of people who want to be successful and plan for your future. In order to be that way, you need to find a mortgage that allows you to put down less than 20% on your home purchase. The problem is, most lenders will then increase your payments by forcing you to pay monthly mortgage insurance, will charge you expensive closing costs, and will offer you higher interest rates, which makes you feel frustrated and defeated. I believe charging extra closing costs or making people pay mortgage insurance is just wrong. I understand how frustrating it can be for those who want higher total financing on their home. That’s why we allow our customers to get piggyback 1st & 2nd mortgages or HELOC's up to 95% of the home's appraised value.
Here’s how it works:
1) Schedule a Consultation
2) Know Your Options
3) Close Your Loan
Request a free consultation with me today so you can stop worrying about how to achieve your financial goals and be happy in your new home.