Finance
A buyer in Alaska uses a 'piggyback loan' (80-10-10 financing) to avoid PMI. This means:
AThe buyer borrows 80% from one lender and 10% from another, with a 10% down payment✓ Correct
BThe buyer obtains a 90% first mortgage and pays no PMI
CThe buyer uses two different FHA loans
DThe seller finances 10% of the purchase price
Explanation
In an 80-10-10 arrangement, the buyer makes a 10% down payment, takes a first mortgage for 80% (avoiding PMI), and takes a second mortgage (home equity loan or HELOC) for the remaining 10%. The result is 100% financing with no PMI.
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