Piggyback mortgage structure with an 80% first mortgage, 15% second mortgage, and 5% down payment.
An 80-15-5 loan is a piggyback mortgage structure with an 80% first mortgage, a 15% second mortgage, and a 5% borrower down payment.
An 80-15-5 loan matters because it uses a larger second mortgage and a smaller down payment than an 80-10-10 structure. That can reduce the cash needed upfront, but it usually increases the importance of second-lien payment, pricing, and approval terms.
It also matters because the borrower may focus on the first mortgage while the lender evaluates the full combined structure.
Borrowers may encounter an 80-15-5 structure during preapproval or product comparison when they have limited down payment but are considering a piggyback second mortgage.
The lender reviews Combined Loan-to-Value Ratio (CLTV), the second-lien payment, borrower reserves, and whether the first and second mortgage structures can close together.
A buyer purchases a $400,000 home using a $320,000 first mortgage, a $60,000 second mortgage, and a $20,000 down payment. That is an 80-15-5 structure.
An 80-15-5 loan differs from 80-10-10 Loan because it uses a larger second lien and smaller down payment.
It differs from Piggyback Loan because piggyback is the broader category.
It also differs from Community Second Mortgage because a community second is usually tied to an approved assistance or affordable-lending program, not just a percentage split.