Piggyback mortgages have seen a significant uptick in popularity, particularly among first-time homebuyers and individuals with low to moderate incomes who are struggling with affordability issues. This type of mortgage involves taking out both a first and second lien at the time of origination, allowing borrowers to finance a larger portion of their home purchase without having to pay for private mortgage insurance (PMI).
Key points from the text:
– Rise in popularity of piggyback mortgages
– First-time homebuyers and low to moderate-income borrowers opting for this option
– Allows for financing a larger portion of home purchase without PMI
– Involves a first and second lien at origination
You can read this full article at: https://www.housingwire.com/articles/more-fha-borrowers-use-piggyback-loans-that-bear-watching/(subscription required)
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