Finance
A 'piggyback loan' structure in Nebraska (e.g., 80/10/10) allows a buyer to:
ABuy two properties simultaneously with one mortgage
BUse a first mortgage for 80%, a second mortgage for 10%, and 10% cash down to avoid PMI✓ Correct
CHave two lenders compete for the loan
DDefer 10% of the purchase price for 12 months
Explanation
A piggyback structure (80/10/10 or 80/20) allows buyers to avoid PMI by keeping the first mortgage at 80% LTV while using a second loan to cover part of the down payment. The buyer provides the remainder in cash.
Related Nebraska Finance Questions
- A borrower with a conventional loan and less than 20% down payment can request cancellation of PMI when:
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?
- The Real Estate Settlement Procedures Act (RESPA) prohibits:
- Mortgage insurance premium (MIP) on an FHA loan differs from PMI on a conventional loan in that MIP:
- A lender's recourse in Nebraska against a borrower in a non-judicial (deed of trust) foreclosure is typically limited to:
- A Nebraska homeowner has a home equity line of credit (HELOC). This is a:
- An interest-only mortgage loan in Nebraska means:
- A Nebraska lender is required to provide a Loan Estimate to a borrower within how many business days of receiving a completed loan application?
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