Finance
In Louisiana, a 'piggyback loan' (80-10-10) is a financing structure where the buyer:
ATakes out one loan for 100% of the purchase price
BObtains a first mortgage for 80%, a second mortgage for 10%, and pays 10% down to avoid PMI✓ Correct
CBorrows from two lenders simultaneously for the same property without disclosure
DFinances 80% and the seller finances 20%
Explanation
A piggyback loan (80-10-10) allows a buyer to put 10% down, take a first mortgage for 80%, and a simultaneous second mortgage for 10% — keeping the first mortgage LTV at exactly 80% to avoid PMI while achieving homeownership with only 10% down.
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