80-10-10 Mortgages vs. Low-Down-Payment Loans: Which Home Loan Is Right for You?
Looking to minimize mortgage insurance or buy with low money down? Mojave River Mortgage offers 80-10-10 piggyback loans, 97% conventional loans, and FHA financing. Compare options and find the right strategy for your home purchase or investment.
Flexible Home Loan Options at Mojave River Mortgage
At Mojave River Mortgage, we specialize in creative, flexible financing strategies for owner-occupied homes, second homes, and investment properties throughout the Mojave River Valley, Victorville, Apple Valley, Hesperia, and surrounding areas.
We proudly offer:
80-10-10 (Piggyback) Mortgages
95% Conventional Loans (5% down)
97% Conventional Loans (3% down)
FHA Loans (96.5% financing with 3.5% down)
Each option has unique advantages depending on your goals, credit profile, and cash position.
What Is an 80-10-10 Mortgage?
An 80-10-10 mortgage uses two loans instead of one:
80% first mortgage
10% second mortgage (HELOC or fixed second)
10% down payment
This structure keeps the first loan at 80% loan-to-value, helping borrowers avoid monthly PMI.
Available for:
Primary residences
Second homes
Investment properties (program availability and terms vary)
What Is a 97% Conventional Loan?
A 97% home loan allows buyers to purchase with just 3% down, using a single mortgage.
These loans are ideal for:
First-time buyers
Buyers who want to preserve cash
Owner-occupied properties
PMI is required but can often be removed once sufficient equity is reached.
Side-by-Side Comparison: 80-10-10 vs. 97% (3% Down)
| Feature | 80-10-10 Mortgage | 97% Conventional (3% Down) |
|---|---|---|
| Down Payment | 10% | 3% |
| Number of Loans | Two | One |
| PMI | ❌ None | ✅ Required |
| Monthly Payment | Often lower long-term | Lower upfront, higher monthly |
| Interest Rates | First loan lower, second higher | Slightly higher due to PMI |
| Cash Needed | Higher upfront | Minimal upfront |
| Property Types | Primary, second, investment | Owner-occupied only |
| Best For | Avoiding PMI, investors | First-time & low-cash buyers |
What About 95% Conventional Loans (5% Down)?
A 95% conventional loan sits between these two options:
Requires 5% down
Single loan
PMI required (often less than a 97% loan)
Available for owner-occupied homes and sometimes second homes
This is a great compromise for buyers who want lower PMI than a 97% loan but don’t want the complexity of an 80-10-10 structure.
FHA Loans: Higher DTI Flexibility
FHA loans remain one of the most flexible options for buyers who:
Have higher debt-to-income ratios
Have limited credit history
Need underwriting flexibility
Key FHA highlights:
96.5% financing
3.5% down payment
Higher allowable DTIs than conventional loans
Upfront and monthly mortgage insurance required
Owner-occupied properties only
FHA can be a powerful stepping stone, especially when paired with a long-term refinance strategy.
Which Loan Is Right for You?
The best loan depends on:
Cash available
Credit profile
Income and DTI
Property type
Long-term investment strategy
At Mojave River Mortgage, we don’t push one loan—we help you strategically choose the right structure for today and tomorrow.
Work With a Local Mortgage Expert
Whether you’re buying a primary residence, second home, or investment property, Mojave River Mortgage offers:
Faster approvals
More flexible loan structures
Wholesale pricing advantages
Clear, strategy-based guidance
📍 Serving Victorville, Apple Valley, Hesperia, Oak Hills, and the Mojave River Valley
📞 Call or text (760) 713-6137
🌐 www.MojaveRiverMortgage.com