A Piggyback HELOC (Home Equity Line of Credit) is a mortgage term used to describe the combination of a first and second loan. Here’s an example of how it works:
For borrowers with excellent credit, use 10% of your own money for the down payment and borrow an additional 10% with a Piggyback HELOC. The HELOC or second mortgage combines (piggybacks) with your first mortgage loan amount. This allows you to put 20% down on your home loan and eliminate mortgage insurance. It can be a nice alternative that allows you to keep a little more money in your pocket and qualifying may be easier. Restrictions do apply, so please ask me for details.