Finance
What is a 'piggyback loan' (80/10/10) structure in Oregon home purchases?
AA government loan program for first-time buyers
BA combination of a first mortgage (80% LTV), a second mortgage (10%), and a 10% down payment to avoid PMI✓ Correct
CA loan structure requiring two lenders to approve the same mortgage
DA refinance strategy using two separate loans
Explanation
A piggyback loan is a creative financing strategy where a buyer takes an 80% first mortgage and a 10% second mortgage (home equity loan or HELOC), providing only 10% cash down payment. Since the first mortgage is at 80% LTV, no PMI is required. The second mortgage typically has a higher rate. This was popular when PMI rates were high relative to second mortgage rates.
Related Oregon Finance Questions
- A homebuyer who obtains a conventional loan with less than 20% down will typically be required to purchase:
- Oregon has a law limiting prepayment penalties on residential mortgages. Under Oregon law (ORS 86A.247), prepayment penalties on owner-occupied residential loans are:
- What does 'debt service coverage ratio' (DSCR) measure in Oregon commercial real estate lending?
- What is the difference between 'pre-qualification' and 'pre-approval' for an Oregon mortgage?
- What is 'amortization' in an Oregon mortgage loan?
- What is 'recourse vs. non-recourse' in Oregon mortgage lending?
- A buyer in Salem obtains a construction-to-permanent loan. This type of loan:
- What is the purpose of the 'Closing Disclosure' (CD) provided under TRID in Oregon mortgage transactions?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →