Can You Have 2 Mortgages on the Same House?

Yes, you can have 2 mortgages on the same house. This is known as a piggyback mortgage or an 80-10-10 loan. It allows you to avoid putting down a 20% down payment, which can be a significant barrier to homeownership for many people.

Here’s how it works:

• You get a first mortgage for 80% of the purchase price of the home.
• You get a second mortgage for 10% of the purchase price.
• You make a down payment of 10% of the purchase price.

This means that you only need to come up with 10% of the purchase price upfront, instead of 20%. This can save you thousands of dollars, especially on a high-priced home.

There are a few things to keep in mind about piggyback mortgages:

• They often have higher interest rates than traditional mortgages.
• You may need to have a good credit score to qualify.
• You may need to make a larger down payment than 10%.

Here are some additional things to consider:

• How much equity do you have in your home? If you have a lot of equity, you may be able to get a home equity loan or line of credit instead of a second mortgage.
• What are your financial goals? If you are planning on selling your home in the near future, a piggyback mortgage may not be the best option for you.
• What are your risk tolerance? Piggyback mortgages can be riskier than traditional mortgages, so it is important to make sure you are comfortable with the risks before you take one out.

If you are considering getting a piggyback mortgage, it is important to talk to a mortgage lender to see if it is the right option for you.

Here are some additional resources that you may find helpful:

• Wood Group of Fairway: https://woodgroupmortgage.com/articles/two-mortgages-same-house
• Assurance Financial: https://assurancemortgage.com/how-many-mortgages-can-you-have/