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I can't get private mortgage insurance. how does a piggyback loan work?

What are the applicant requirements for a piggyback mortgage? by barnett596 from Denver, Colorado. Sep 6th 2019 Reply

David R Youngs - Branch Manager & Mortgage Advisor (DavidRYoungs)
#64 ranked lender in Minnesota - 87 contributions

I'm not sure I understand your situation fully... Can you explain why you aren't able to qualify for PMI (Private Mortgage Insurance)? Although this is something that you have to pay for monthly or upfront, the lender obtains this insurance, not you personally. This is almost always a cheaper option than taking a 2nd loan out simultaneously if you can avoid it.To answer your question though, most 2nd mortgages ("piggybacks") will go to a maximum of 89.99% financing. Typically these are structured where the 1st mortgage would be at either 75%-80% of the value/purchase price and then the 2nd loan would cover the additional 10%-15%. This leaves you with a 10.1% down payment requirement. The qualifications for these are typically higher than 1st mortgages, requiring 700+ credit scores, lower debt-to-income ratios and other miscellaneous pieces.If you have further questions and would like to discuss things in more detail, feel free to call me at 651-636-2840 Ext 12 or email me at Thanks!

Sep 6th 2019
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,703 contributions

We need more information... There are basically only a few major mortgage insurance companies, and if your situation requires PMI, then lender handles it on the back side. Extremely rare to be approved for a loan and then denied mortgage insurance. Even when that happens, your lender just usually sends it to one of the other PMI companies.

Sep 8th 2019
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