Kitchen Table Guide · 5 min read
Purchase Money Second
A second mortgage taken at closing — often used to avoid PMI or preserve loan structure.
A purchase money second — sometimes called a piggyback loan — is a second mortgage taken at the same time as the first, at closing. It sits behind the primary mortgage and helps make a specific loan structure work.
Why Buyers Use One
- ✔ To avoid private mortgage insurance on a low-down-payment purchase
- ✔ To keep the first mortgage inside conforming loan limits
- ✔ To bridge the gap between available down payment and desired purchase price
- ✔ To structure a jumbo purchase more efficiently
How It's Structured
A common example is an "80/10/10": an 80% first mortgage, a 10% second mortgage, and a 10% down payment. The exact split depends on the property, the pricing, and the goals of the borrower.
Things to Consider
Second mortgages carry their own rate and terms — often adjustable. The math only wins when the combined structure is meaningfully better than the alternative. We'll compare side by side so the choice is clear.
A conversation, not a sales pitch
Pull Up a Chair.
A piggyback structure isn't right for every purchase. Let's run the numbers next to a traditional first-mortgage-only option and pick the one that costs less over the years you plan to own the home.