A Second Loan That Rides Along At Closing.
A closed-end second taken at the same time as your first mortgage, so the first can stay smaller.
Two loans arranged together at purchase
The second sits behind the first, and both are set up at closing.
- A closed-end second mortgage taken alongside a first at purchase.
- The loan sits in second lien position behind your new first mortgage.
- Available for owner-occupied homes, second homes and investment properties.
- A fixed sum with documented repayment terms rather than a revolving line.
- Qualifying uses a fully amortizing payment based on the documented repayment terms.
- Owner-occupied and second home transactions are subject to their own combined limits.
Purchase transactions
Second lien position
Owner-occupied, second home or investment
Closed-end, not revolving
Fully amortizing qualifying payment
Arranged alongside the first
What is the Saxton Piggyback Second Mortgage?
A second mortgage set up at the same time as the first, rather than years later.
Most people meet second mortgages years after buying, once equity has built up. A piggyback works differently. It is arranged at the same time as the purchase, so the first mortgage and the second are put in place together at closing.
The reason to do this is structural. By splitting the borrowing across two loans, the first mortgage can stay at a smaller amount than it otherwise would. That can change how the first is priced and whether mortgage insurance is required on it, which is the usual motivation for the arrangement.
It is a closed-end second, meaning a fixed sum with documented repayment terms rather than a revolving line you draw against. Qualifying uses a fully amortizing payment based on those documented terms. It is available for owner-occupied homes, second homes and investment properties, with owner-occupied and second home transactions subject to their own combined limits.
Why choose the Saxton Piggyback Second Mortgage?
For buyers who want to structure the borrowing rather than put it all on one loan.
Keeps The First Smaller
Splitting across two loans means the first mortgage can sit at a lower amount, which is the entire structural argument for a piggyback.
May Avoid Mortgage Insurance
Because the first can stay smaller, this arrangement is often used to sidestep mortgage insurance on the first mortgage.
Set Up At Closing
Both loans are arranged together, so you are not coming back for a second mortgage later and requalifying then.
Fixed Rather Than Revolving
A closed-end second is a defined sum with defined repayment terms, which is easier to plan around than a line of credit.
Three Occupancy Types
Owner-occupied, second home and investment property transactions are all in scope, each with their own limits.
Three Occupancy Types
Owner-occupied homes, second homes and investment properties are all eligible, each with its own combined limits.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about piggyback second mortgages.
It means the second mortgage is arranged at the same time as the first, at purchase, rather than being taken out years later against built-up equity.
Splitting the borrowing lets the first mortgage stay smaller. That can affect how the first is priced and whether mortgage insurance is required on it.
No. A closed-end second is a fixed sum with set repayment terms. A HELOC is a revolving line you can draw against and repay repeatedly.
Yes. Owner-occupied homes, second homes and investment properties are all eligible, though the limits differ by occupancy.
Using a fully amortizing payment based on the documented repayment terms of the second.
It can change whether mortgage insurance is required on the first mortgage, but whether it works out better overall depends on the pricing of both loans. We would price it both ways before you decide.
This structure is built around a purchase. If you already own the home, a standalone second or a home equity loan is the more natural conversation.
Find out what you qualify for
Whether a piggyback beats a single larger first mortgage depends on the pricing of both. Let us run the comparison for your purchase.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
*Loan amounts, rates, terms, and eligibility are subject to credit approval, income and asset verification, appraisal, and program guidelines. A piggyback second is a closed-end junior lien arranged alongside a first mortgage at purchase and is subject to combined lien limits that vary by occupancy. Whether this structure is advantageous depends on the pricing of both loans. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.