What Is a Piggyback Loan (80-10-10)?

Short answer

A piggyback loan is a second mortgage taken out at the same time as your first mortgage, most often as an 80-10-10: an 80% first loan, a 10% second loan and 10% down (CFPB, as of October 2026). Keeping the first loan at 80% avoids mortgage insurance, and it can keep the first loan under the 2026 conforming limit of $832,750.

Definition

Two loans closed together on one purchase: a first mortgage at 80% of the price and a second mortgage or HELOC for part of the rest, with the buyer paying the remaining down payment.

Worked example

Example only, not a quote: you buy a $1,000,000 home with 10% down. One loan for 90% would be $900,000, above the $832,750 conforming limit, so it would be a jumbo loan. With an 80-10-10, the first loan is $800,000 (conforming, at 80% so no PMI), the second is $100,000 and your down payment is $100,000. In Florida each loan pays note doc stamps and intangible tax: on the $100,000 second, $350 plus $200.

Why buyers use it

• Skip mortgage insurance: the CFPB notes that with less than 20% down you generally pay mortgage insurance, but an 80% first loan avoids it. See PMI.
• Stay conforming: splitting the debt can keep the first loan at or under $832,750 (FHFA 2026 limit), avoiding jumbo rules on reserves and credit.
• Keep cash: you finance 90% total while putting 10% down.

The trade-offs

Per the CFPB, the second loan typically carries a higher rate and is often adjustable. Refinancing later is harder because the second lender has to agree unless you pay it off, and selling can be harder if values drop. The second can be a fixed second mortgage or a HELOC. Compare total monthly cost against a single loan with PMI. Rates vary daily; call for today's pricing. Approval is subject to credit approval for both loans.

In South Florida

Many South Florida homes price right around the conforming line, so a piggyback can be the difference between a conforming first loan and jumbo underwriting. The second loan adds its own Florida taxes, $0.35 per $100 in doc stamps and 2 mills in intangible tax (F.S. 201.08, 199.133), so include them when you compare against one loan with PMI.