Piggy-Back Loans with Community Trust Mortgage
At Community Trust Mortgage, we help you explore smart financing options. One of our most popular solutions is the piggy-back loan. This type of loan can not only make homeownership more affordable but also eliminate the need for costly private mortgage insurance (PMI). Let’s dive into the details so you can easily see if it’s the right fit for you.
What Is a Piggy-Back Loan?
A piggy-back loan involves taking out two loans to purchase a home. First, you get a primary mortgage for a large portion of the home’s price. Then, you secure a second loan to cover the remaining amount. Typically, the second loan equals 10% of the home’s value, while the first covers 80%. Because of this structure, you can avoid paying PMI.
Why Choose a Piggy-Back Loan?
Many buyers select piggy-back loans for their flexibility and savings. Here are several key benefits:
- No PMI Requirement: Since your primary loan doesn’t exceed 80% of the home’s value, you don’t need PMI.
- Lower Down Payment: You can buy a home without needing a full 20% down payment.
- Competitive Interest Rates: The first loan usually has favorable rates, and the second loan can be manageable.
- Tax Benefits: Additionally, the interest on both loans may be tax-deductible, offering added financial perks.
How Piggy-Back Loans Work
Here’s how the process typically unfolds:
- Get Pre-approved: First, start by contacting Community Trust Mortgage for loan pre-approval.
- Determine Loan Amounts: Next, work with our experts to decide the best split between the first and second loans.
- Secure Financing: Once approved, the primary loan will cover 80% of the home’s value, and the second loan typically covers 10%.
- Close the Deal: Finally, once the loans are finalized, you’re ready to close on your dream home.
Are Piggy-Back Loans Right for You?
Piggy-back loans aren’t ideal for everyone, but they do offer great benefits for specific buyers. For instance, you may benefit if you have good credit and want to minimize your down payment while avoiding PMI. To decide if it’s the right option, speak with one of our experienced loan officers.
Partner with Community Trust Mortgage
At Community Trust Mortgage, we always prioritize your financial well-being. Our team will guide you through every step, ensuring you understand the process and maximize savings. Contact us today to learn more or start your application. With the right support, your homeownership goals are always within reach.