What is a Piggyback Buster?

What is a piggyback and why do we want to bust it?

  • It's an older combination loan product of a first and second mortgages structured to eliminate having to pay Private Mortgage Insurance (PMI).  An example would be an 80% Loan to Value first and a 20% Loan to Value second.  An 80/20.  
  • These loan programs are rare or have been eliminated due to such high losses in the recent economic down turn.
Why should we use this loan program instead?  There are several reasons listed below:
  • It allows the borrower to qualify for a larger home with lower monthly payments.
  • Fixed rate, fully amortizing with level payments for the life of the loan.
  • This program is for conventional conforming loan limits, up to $453,100.
  • The PMI is paid by the lender, not by the borrower.
  • Our guidelines allow us to lend up to a 95% of the homes value.

Please call our Newark, Delaware office at 302-494-6631 or contact one of our team members directly using the information below.

Piggyback Buster Guidelines (what's allowed and what's not allowed):

  • Cash out refinancing is not permitted.
  • Co-signers are not permitted.
  • Non-occupant co-borrowers are not permitted.
  • Only a 1-unit detached primary residence is allowed with this product. Multi-unit and attached properties are not allowed. Condominium, manufactured homes, second homes and investment properties are not allowed.
  • Minimum 720 FICO is required.
  • Maximum DTI is 45%.
  • 2 Months PITI reserves required.
  • 3% Seller Assistance Allowed.
  • No Escrow Waivers.
 

 



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