Finance
A Colorado homebuyer uses a 'piggyback' loan arrangement (80/10/10). This means:
A80% first mortgage, 10% second mortgage, 10% down payment✓ Correct
B80% down payment, 10% first mortgage, 10% second mortgage
C80% FHA loan, 10% grant, 10% gift
D80% conventional, 10% seller financing, 10% closing costs
Explanation
An 80/10/10 piggyback loan involves: 80% first mortgage (avoiding PMI), 10% second mortgage (HELOC or second lien), and 10% down payment. This was used to avoid PMI without a 20% down payment on a conventional loan.
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