80/10/10 Loans: Can a Piggyback Loan Help You Avoid PMI?
An 80/10/10 mortgage (often called a piggyback loan) is a strategy that pairs a first mortgage with a second loan, plus a down payment—commonly structured to reduce or avoid private mortgage insurance (PMI) when you’re putting less than 20% down. Brad Hamblen Home Loans keeps the process clear and organized—so you understand the structure, the payment impact, and the next step.
Quick Answer: 80/10/10 Piggyback Loan Basics
If you’re searching “80/10/10 loan,” the core idea is simple: you may be able to finance 80% with a first mortgage, 10% with a second loan, and 10% down—potentially avoiding PMI. The right choice depends on your payment comfort level, the second-loan terms, and how long you plan to keep the structure.
80/10/10 Loans in Northern Kentucky and Greater Cincinnati
In Northern Kentucky and Greater Cincinnati, buyers often want speed and clarity—especially when they’re structuring financing to strengthen an offer and manage monthly payments. Brad Hamblen Home Loans is based in Florence, KY and supports borrowers with organized checklists, steady milestone tracking, and direct communication—so your piggyback loan structure stays on track from first call to closing.
How an 80/10/10 Mortgage Works
An 80/10/10 loan is typically two loans at once (a first mortgage + a second loan) plus your down payment.
Typical structure buyers ask about
- First mortgage: ~80% of purchase price
- Second loan: ~10% (second mortgage or second-lien product, depending on availability)
- Down payment: ~10%
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The key is understanding how the second loan is priced and how it affects the total monthly obligation.
PMI Basics and Why Buyers Consider Piggyback Loans
Private mortgage insurance (PMI) is often required on conventional loans when the down payment is below 20%. Some buyers explore an 80/10/10 to reduce or avoid PMI—but that doesn’t automatically mean it’s cheaper overall.
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What Lenders Review and Common Pitfalls
Piggyback loans can add complexity, so organization matters.
What typically gets evaluated
- Credit profile and reserves (risk and payment strength)
- Total monthly payment comfort level (including the second loan)
- Cash-to-close (down payment + closing costs + reserves)
- Long-term plan (how long you’ll keep the structure)
A simple way to ground the discussion is comparing loan types and structures before you lock in a strategy.
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Your 80/10/10 Loan Process
You deserve a process that feels organized and steady from day one.
Step 1 — Confirm The Strategy
Schedule a call or begin pre-approval to review payment goals and whether a piggyback structure is realistic.
Step 2 — Build A Clean Pre-Approval File
We’ll review documentation, clarify cash-to-close, and map the structure that best fits your offer strategy.
Step 3 — Clear Updates Through Closing
You’ll get steady communication and milestone tracking so the process stays organized.
Loan Guides and Comparisons
Want to go a level deeper before you apply? Start with these helpful guides. We’ll continue adding new resources to make the process even easier to understand.
Helpful Tools & Homebuyer Resources
Mortgage Calculators
Run quick scenarios to understand how price, down payment, and term impact the payment.
First-Time Homebuyer Guide
Get a step-by-step overview to reduce stress and avoid surprises.
Home Loan Readiness Checklist
A Comprehensive Guide to Ensure You Are Fully Prepared for Securing Your Home Loan Approval
Explore All Loan Options
Discover and thoroughly explore all of our diverse loan options available to you.
80/10/10 Loan FAQs
Your 80/10/10 loan questions answered clearly and simply.
What is an 80/10/10 loan?
An 80/10/10 loan is a piggyback structure that typically uses a first mortgage around 80%, a second loan around 10%, and a down payment around 10%. The goal is often to reduce or avoid PMI while keeping cash-to-close manageable.
Does an 80/10/10 loan always avoid PMI?
It often can, because PMI is typically tied to the first mortgage’s loan-to-value structure. However, avoiding PMI doesn’t guarantee the total monthly cost is lower once the second loan terms are included.
Is a piggyback loan cheaper than PMI?
Sometimes it can be, sometimes it isn’t. The decision depends on your credit profile, how the second loan is priced, and how long you plan to keep the structure before refinancing or paying down.
What is PMI and when is it required?
PMI is private mortgage insurance that’s commonly required on conventional loans when the down payment is under 20%. The CFPB explains PMI protects the lender—not the borrower—when equity is lower.
Can I use an 80/10/10 loan as a first-time homebuyer?
Potentially, yes—if income, credit, and cash-to-close support the structure. The biggest factor is whether the total monthly payment stays comfortable with two loan payments.
Does an 80/10/10 loan require higher credit?
Often, stronger credit helps because you’re qualifying for two linked loans. A clean file and stable income story can matter as much as a single score.
What down payment do I need for an 80/10/10 mortgage?
In a classic structure, buyers put down about 10%. However, the exact split can vary by program availability and borrower profile.
Is the second loan a HELOC or a home equity loan?
It depends on the product and what’s available. Some piggyback structures use a closed-end second loan; others may use a line of credit. The terms affect your payment and risk profile.
Can I refinance later to remove the second loan?
Some borrowers refinance later depending on equity growth and market rates. The best strategy is planning the “exit path” upfront so your timeline stays realistic.
What’s the fastest way to know if an 80/10/10 is right for me?
Schedule a call to compare monthly payment scenarios, cash-to-close, and your long-term plan—then decide whether the piggyback structure fits.
Service Area and Licensing
Office: 6900 Houston Road Unit 25, Florence, KY 41042
Phone: (859) 466-7230
Brad Hamblen (NMLS #52831) is licensed as a Mortgage Loan Originator in:
Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia
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