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Best for customers with a 5%—10% mortgage down payment.
Lets you avoid the cost of traditional private mortgage insurance (PMI).
Offsets the cost of PMI through your interest rate, providing an opportunity for a tax deduction (ask your tax advisor).
Potentially lower mortgage payments than a similar loan with PMI.
Available on most loan programs.
Another mortgage insurance alternative is an 80-15-5 Program sometimes called a Piggy-Back. A fixed rate mortgage program designed to help Borrowers purchase a home with as little as 5% down while avoiding Mortgage Insurance. Not only does it save you money, it also maximizes tax benefits.
- Greater home equity buildup
- 2nd lien is 100% tax deductible, mortgage insurance is not!
- 2nd paid off in 5-15 years helps college expenses or retirement
- Allows for expanded underwriting qualifying ratios
- Allows borrowers to manage their own escrows
- No prepayment penalty on 1st or 2nd mortgage lien.
Take advantage of our free, secure Lender service and get great rates from several local California and national mortgage lenders at once.
Restrictions apply. Program terms not always available in California and are subject to change at any time.
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