U.S. Mortgage Index

Piggyback loan

Definition

A piggyback loan is a second mortgage originated together with a first mortgage on the same home. An 80-10-10 structure is one common pattern, not a second product.

In plain English

Instead of one mortgage plus a large down payment, some transactions use a first loan and a second loan at the same time. The second is the piggyback. It is still a second mortgage. Combined loan-to-value adds both liens. This page does not say the structure avoids mortgage insurance in every case.

Technical definition

CFPB’s second-mortgage heading is the official consumer definition of a junior lien. Piggyback is the simultaneous-origination pattern of that idea. 80-10-10 is an alias of this page.

Why it matters

Closing disclosures can show two new liens. Readers need the piggyback name without a separate 80-10-10 page.

Example

Riley closes a first mortgage and a smaller second mortgage on the same day to complete the purchase. The second loan is the piggyback. Combined loan-to-value includes both.

Sources reviewed

Important note

An 80-10-10 loan is a piggyback pattern, not a separate canonical concept.