PiggyBack HELOC (Home Equity Line of Credit)

A Piggyback HELOC (Home Equity Line of Credit) is a strategic mortgage option that involves combining two loans to maximize borrowing potential against a property’s equity. This method typically comprises a primary mortgage and a secondary HELOC. The primary mortgage covers a substantial portion of the property’s purchase price, while the HELOC supplements the remaining amount, effectively “piggybacking” on the initial loan. This approach can be advantageous for homebuyers seeking to avoid private mortgage insurance (PMI) or who lack a substantial down payment.

Another savings option that a Piggyback HELOC offers is avoiding Jumbo Interest rates. Jumbo interest rates are normally higher than conventional mortgage rates. Splitting a Jumbo mortgage into two where the first mortgage is at a conventional loan amount and tagging on the remaining balance with a HELOC, would substantially allow for the borrower to tap into the conventional interest rate market as opposed to a higher Jumbo interest rate.

A Piggyback HELOC, also known as a piggyback loan or second mortgage, can offer various benefits to specific borrowers. Typically, this financial product is attractive to homebuyers who lack a substantial down payment to avoid costly private mortgage insurance (PMI). By combining a traditional mortgage with a Home Equity Line of Credit (HELOC), borrowers can secure the necessary funds for a home purchase while minimizing monthly payments.

Piggyback HELOC highlights:

• Max Line Sizes
• $750K 80.00% CLTV
• $500K 89.99% CLTV
• 680 Min FICO
• Multiple Properties Allowed
• Max Combined Loan Amount $3 Million

Piggyback HELOCs (Home Equity Line of Credit) have proven to be a versatile and effective financing option for homeowners. By combining a primary mortgage and a HELOC, borrowers can access additional funds and enjoy potential tax benefits. The structure of Piggyback HELOCs allows homeowners to avoid private mortgage insurance (PMI) and secure competitive interest rates. Piggyback HELOCs can serve as a valuable tool to fund home improvements, consolidate debts, or achieve other financial goals. As with any financial decision, seeking professional advice is paramount to make informed choices. Contact us for more information.