These programs involve getting a first deed of trust from the lender at 80% of the sales price or appraised value of the property. The lender then arranges to make a second deed of trust for 10%, 15% up to 20% for the balance of purchase price. Lenders are required by law to have Private Mortgage Insurance to protect themselves against losses from foreclosures. You as the borrower pay for that insurance, similar to banks requiring collision insurance on an automobile. Private Mortgage Insurance is not usually considered tax deductible, while the interest on a second deed of trust is. Lenders generally charge a little higher interest rates on the second and in almost all cases a piggyback loan is a better deal for the borrower when all factors are considered. Call us for a personal evaluation of which loan program is best for you. 

• Loan program is available as a purchase loan as well as for a refinance
• Owner occupied or investment properties, 1-4 units ok
• NO private mortgage insurance required
• Maximize cash flow
• Minimize tax obligations

Borrower Profile 

• Wants to keep assets without having to liquidate stocks, bonds or mutual funds
• Wants to maximize cash flow
• Needs to minimize taxable income/capital gains
• Looking to refinance where sufficient equity may not exist.

To find out more about how to minimize your taxes and maximize your tax deductions, please call (650) 366-8123 or contact us.