From Elizabeth Weintraub,
Your Guide to Home Buying / Selling.
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Definition: In most instances, piggyback loans represent 100% mortgage financing, meaning the buyer has chosen to not put down any money but to finance the entire purchase price. A typical piggyback situation is an 80% first mortgage and a 20% second mortgage. If the buyer put down 5%, the first mortgage would still be 80%, and the second mortgage balance would be 15%.

Also Known As: Combo or combination loans

Alternate Spellings: Piggy-back loans

Common Misspellings: Piggie back loans

Examples: To reduce his monthly payments, Dweezil financed an 80% first mortgage with an adjustable interest rate and he obtained a 20% second mortgage that was payable interest only. Let's hope that Dweezil doesn't lose his job any time soon.