Finance
A 'piggyback loan' (80-10-10 financing) is typically used to:
AFinance investment properties without a down payment
BAvoid paying PMI while putting only 10% down by taking a second mortgage for 10%✓ Correct
CCombine two properties into one mortgage
DFund home improvements after purchase
Explanation
An 80-10-10 piggyback loan involves a first mortgage for 80%, a second mortgage (HELOC or fixed loan) for 10%, and a 10% cash down payment. The structure keeps the first mortgage's LTV at 80%, avoiding the need for PMI.
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