Piggy-Back Loans with Community Trust Mortgage
At Community Trust Mortgage, we help you find smart ways to finance your home. One popular option is a piggy-back loan. This type of loan can make buying a home more affordable and even help you avoid private mortgage insurance (PMI). Let’s explore how it works and whether it’s the right fit for you.
What Is a Piggy-Back Loan?
A piggy-back loan involves taking out two loans to finance a home purchase. First, you get a primary mortgage that covers most of the home’s cost. Then, you take a second loan to pay for part of the remaining amount. Typically, the second loan equals 10% of the home’s value, while the primary loan covers 80%. Since your main mortgage stays below 80%, you don’t need PMI.
Why Choose a Piggy-Back Loan?
Many homebuyers choose piggy-back loans because they offer flexibility and cost savings. Here are some key benefits:
- No PMI Required – Because the primary mortgage stays under 80%, you can skip expensive PMI payments.
- Lower Down Payment – You can buy a home without needing a full 20% down payment.
- Competitive Interest Rates – The first loan often has great rates, and the second loan usually comes with manageable terms.
- Tax Benefits – In some cases, the interest on both loans may be tax-deductible, offering extra financial advantages.
How Do Piggy-Back Loans Work?
Here’s a simple breakdown of how the piggy-back loan process works:
- Get Pre-Approved – First, reach out to Community Trust Mortgage for a pre-approval to see your loan options.
- Decide on Loan Amounts – Next, work with our team to determine the right loan structure for your budget.
- Secure Financing – Once approved, the first loan covers 80%, and the second loan typically covers 10%.
- Close on Your Home – Finally, after the loans are set, you’ll be ready to close on your new home.
Is a Piggy-Back Loan Right for You?
Piggy-back loans work best for certain buyers. If you have good credit and want to reduce your down payment while avoiding PMI, this type of loan could be a great option. Not sure if it’s the right fit? Our experienced loan officers can help you decide.
Work with Community Trust Mortgage
At Community Trust Mortgage, we focus on helping you save money and achieve homeownership with confidence. Our team will guide you every step of the way, making sure you understand your options and get the best loan for your needs.
Ready to learn more? Contact us today to get started on your piggy-back loan application. With the right support, owning a home is within reach!