Purchase · 5 min read
What is an 80/10/10 piggyback loan, and can it keep me under the jumbo limit?
August 1, 2026 · Written by Bill Egan, NMLS 7342
Short answer
It is two mortgages plus a down payment: 80 percent first, 10 percent second, 10 percent down. The first loan stays at 80 percent, so you usually avoid conventional PMI. In 2026 it is also used to keep that first loan at or under the $832,750 conforming baseline for a one-unit home. The second loan typically has a higher rate. Run the piggyback and a single jumbo before you pick.
01
Why this comes up
The purchase is over the conforming line, PMI looks expensive, and someone mentioned 80/10/10. You do not know if a second mortgage is a workaround or a second problem.
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Where this goes wrong
The second lien has a balloon or a much higher rate that was not in the shopping payment. Combined DTI breaks. Or the first loan was sized as conforming, the second does not approve, and you are suddenly jumbo with no lock. Closing has two lenders and twice the conditions.
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What we do about it
We price a piggyback against a single jumbo on the same credit: blended payment, second-lien rate and term, and whether that second is a regular loan or a HELOC. Keeping the first loan at 80 percent can avoid conventional PMI and can keep it under the 2026 $832,750 baseline. The second loan is not free.
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How to get ready
Ask for the combined payment, the second-lien rate, and whether it balloons. Do not assume 80/10/10 beats jumbo. Bring the price, down payment, and credit. We will run both structures before you write the offer around one of them.