Finance
A Mississippi homebuyer is considering a 'piggyback' loan (80-10-10 financing). This structure means the buyer takes:
AOne loan for 90% of the purchase price
BAn 80% first mortgage, a 10% second mortgage, and makes a 10% down payment — avoiding PMI✓ Correct
CA loan requiring 10% down and 80% LTV
DThree separate first mortgages
Explanation
An 80-10-10 'piggyback' loan structure consists of: an 80% first mortgage (avoids PMI), a 10% second mortgage (HELOC or fixed), and a 10% down payment. The structure allows buyers to avoid PMI (which requires 80% LTV on the first mortgage) while using only 10% down.
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