Homebuyers and investors who want to purchase high-value properties often end up in the world of non-conforming jumbo loans, which exceed the loan limits established by the Federal Housing Finance Agency (FHFA).
Jumbo loans help borrowers access a larger amount of cash, but they typically come with higher interest rates, stricter underwriting standards, and larger down payment amounts—making them a hefty financial commitment.
However, there is a strategic alternative for these types of borrowers. They can use a piggyback HELOC through Figure’s platform to secure a primary mortgage that falls within conforming loan limits and use a home equity line of credit (HELOC) to cover the rest of the property’s cost.
Read on to learn about piggyback HELOCs and how they can be leveraged for high-value properties.
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What is a jumbo loan and why is it so expensive?
Jumbo loans are not eligible for purchase from government-sponsored entities Fannie Mae and Freddie Mac because they exceed conforming loan limits.
As a result, they’re considered a higher risk for lenders and come with higher interest rates and stricter qualification criteria, including:
Excellent credit scores
Low debt-to-income (DTI) ratios
Extensive documentation proving income, assets, and employment
Larger down payment amounts of 20% or more
But as property prices continue to increase, the need for jumbo loans is rising.
Many borrowers find it difficult to afford the higher costs associated with jumbo loans—even if they’re qualified.
How a piggyback HELOC helps borrowers avoid jumbo loan pricing
A piggyback HELOC involves using two loans—a primary mortgage and a home equity line of credit—to manage the purchase of high-priced properties without the higher costs and requirements of jumbo loans.
Figure can support up to 90% combined loan-to-value (CLTV) and any combination of first and second lien, with 80/10/10 and 70/20/10 as the most common scenarios.
Piggyback HELOC example using the 80/10/10 structure
The conforming loan limit for one-unit properties in most of the U.S. in 2025 is $806,500.
Let’s say an investor wants to purchase a $900,000 property, but can’t afford jumbo loan pricing.
Here’s how they can purchase the property using a piggyback HELOC through Figure’s platform:
They get a primary mortgage that covers 80% of the home’s value, or $720,000
They make a 10% down payment, which equals $90,000
The piggyback HELOC covers the remaining 10%, or $90,000
By keeping the primary mortgage below the conforming loan limit, the borrower avoids the higher rates and stricter criteria of a jumbo loan.
Piggyback benefits for high-balance borrowers and real estate investors
Piggyback HELOCs help investors and homebuyers strategically minimize the overall costs of borrowing, while still providing access to funding for high-priced properties.
Let’s look at the full range of piggyback benefits for borrowers.
Lower upfront costs
With a piggyback HELOC, the borrower is only required to put 10% down on their property, yet is able to remain within conforming loan limits and avoid the higher jumbo loan rates.
They can also avoid paying private mortgage insurance (PMI), which is typically required when a borrower puts down less than 20%.
Jumbo loans typically require at least 20% down or more, depending on the lender’s requirements.
Avoid jumbo loan pricing
The piggyback structure often results in lower overall borrowing costs compared to taking out a single jumbo loan for the entire amount, because the primary loan benefits from conforming loan rates.
The higher costs associated with jumbo loans are due to the combination of higher interest rates, larger down payment amounts, and higher closing costs and fees.
Maximum flexibility
Piggyback loans give the borrower greater control of their financing by providing the flexibility of a HELOC.
A HELOC through Figure’s platform has a five-year draw period, which homeowners or investors can use to redraw funds for property improvements or other expenses.
Avoiding the higher costs associated with jumbo loans also helps investors maximize the cash flow on their properties.
Financing for high-value properties
Property values are continuing to increase in most markets, making it increasingly difficult for investors to secure properties that can yield significant returns.
Traditional jumbo loans cut into cash flow on high-value properties, while piggyback HELOCs offer more manageable costs and fewer borrowing constraints.
See how LO Jason Brothers uses Figure’s platform to reach more borrowers.
What makes piggyback HELOCs through Figure’s platform different?
Figure’s platform helps borrowers and brokers alike close deals faster, by making financing easier. Our process is fully automated and designed for speed, so we won’t slow down your closing!
“Our piggyback product is a perfect example of how Figure is an innovative platform that’s creating technology-driven opportunities by challenging the status quo,” said Figure CEO Michael Tannenbaum.
Tannenbaum said the piggyback HELOC platform was created in “direct response to partner feedback.”
The process is simple:
All information from the conventional process flows via Mortgage Industry Standards Maintenance Organization (MISMO) file to Figure
Partner funds the requisite proceeds at closing, Figure then purchases the loan
Partner funds in their name and brand
For high LTV purchases, customers can save money relative to mortgage insurance.
Due to Agency loan-level price adjustments (LLPAs), a piggyback HELOC is an even better option for customers with scenarios like condos, high balances, investor properties, and 2-4 unit properties.
The first and second liens close at the same time.
Take advantage of Figure’s cutting-edge tools and technology
A piggyback HELOC through Figure’s platform is a powerful tool for high-balance borrowers and real estate investors to secure the financing they need without the added burden of jumbo loan pricing.
Connect with Figure today to see how a piggyback HELOC can help you and your clients achieve financial goals.
