Just about everything in our high-cost, Orange County market could use some “wings” these days. Pending home sales and soaring rents haven taken flight. Eager homebuyers, however, could use a lift! That’s why, the piggyback loan can offer buyers MORE opportunity to purchase a home and help them SAVE money in the long run!
What is a Piggyback Loan?
A piggyback loan is smaller loan on the back of a larger one. Or, in second position behind the first. Historically, they were used to help buyers get into homes with no money down. Of course, when disaster struck and millions of homeowners lost equity in their homes overnight, the piggyback loan option had to go.
Fortunately, the housing market has seen a huge marked recovery! And, the 80/10/10 Piggyback loan is back. With slightly different parameters, the 80/10/10 piggyback loan has been re-introduced to offer buyers another flexible financing option. Especially, when considering the major “economic factors” that shape today’s housing market.
Buying a Home With a Smaller Initial Investment and Saving Money!
Household income in Orange County, CA hasn’t budged much since 2011. That means, home value gains are likely perceived as “overvalued” instead of “recovered.” It has also made it difficult to save amidst rising rents. The 80/10/10 piggyback loan option is a response to these factors. It’s an option that allows buyers to purchase while interest rates are still low, dodge rising rents and reduce their savings period. Plus, when compared it’s low down payment counterpart options, it can actually be a more cost-effective choice. See below:
The Piggyback Loan With “Wings!”
For buyer’s looking for a lift, ask me more about the 80/10/10 piggyback loan! I’d love to discuss your specific home buying scenario and draw up a comparison of your short-term and long-term options. Otherwise, feel free to explore your housing options as they might best suit you. Of course, for those feeling the pressure of the “economic elements” like rising rents and low interest rates, let’s get started today. If there is any program out there with ‘wings’ large enough to help well-qualified buyers get into a home at just the right time, the 80/10/10 piggyback loan is the one that can help!