Combination financing or piggyback loans offer an affordable way to provide a financing option for your home buyers who prefer not to pay PMI.


Features of the loan:

  • Purchase at a JUMBO price point with a smaller down payment. A conforming loan offers more options and competitive rates when compared to a fixed-rate jumbo loan. A combo loan can help finance nearly all of the purchase price while staying within the maximum conforming loan limit of $726,200.00. 1st mortgage for $726,200.00 of the sales price; 2nd mortgage plus small down payment for the balance.
  • No mortgage insurance. Mortgage insurance that is paid as part of a home loan is no longer tax-deductible and can force unwanted up-front or monthly costs. Learn other ways to avoid monthly mortgage insurance with only a small down payment.
  • Tax deductions. With a second mortgage, you may be able to obtain a greater tax deduction for mortgage interest than with mortgage insurance. You should consult your tax adviser.
  • Waive the escrow account. Manage annual property taxes and homeowner’s insurance to be paid directly from the homeowner as opposed to paying monthly with the mortgage payment.
  • No prepayment penalty. Pay down the balance on the 2nd mortgage without penalty.


Certain restrictions apply on all programs. See your First Liberty Bank Loan Officer for complete program guidelines, loan application, applicable fees and annual percentage rates (APR’s) for all loan programs. Full underwritten approval is required and all loan approvals are subject to credit, income and asset review and approval.

Also known as a "Piggy-Back Loan," this is where you are essentially loaned a portion of your down payment to avoid PMI (Private Mortgage Insurance) or to maintain a certain 1st mortgage loan amount or payment.