Piggyback mortgage structure with an 80% first mortgage, 10% second mortgage, and 10% down payment.
An 80-10-10 loan is a piggyback mortgage structure with an 80% first mortgage, a 10% second mortgage, and a 10% borrower down payment.
An 80-10-10 loan matters because it changes the way purchase financing is split. Instead of one larger first mortgage, the borrower uses a first lien, a second lien, and cash down payment together.
It also matters because borrowers may compare this structure with a single mortgage that includes Private Mortgage Insurance (PMI). The lower first-lien LTV can be helpful, but the second mortgage still adds payment, cost, and lien complexity.
Borrowers encounter 80-10-10 structures during product comparison, preapproval, and closing. The lender evaluates the first mortgage, the second mortgage, Combined Loan-to-Value Ratio (CLTV), payments, and title priority.
The term becomes practical when a buyer has some down payment but wants to compare PMI against a piggyback second lien.
A buyer purchases a $500,000 home using a $400,000 first mortgage, a $50,000 second mortgage, and a $50,000 down payment. That split is an 80-10-10 structure.
An 80-10-10 loan differs from Piggyback Loan because piggyback is the broader category, while 80-10-10 is a specific split.
It differs from 80-15-5 Loan because the second mortgage and down payment percentages are different.
It also differs from Combo Loan because combo loan can refer to multiple loan combinations beyond this exact structure.