This is not a commitment to lend.  Not all borrowers will qualify for the loan programs listed.  All program terms and conditions are subject to change and may be discontinued without prior notice.  Contact loan originator for program questions and scenarios.  

COMBO
HOME LOANS

A COMBO loan is the combination of TWO different home loans to purchase a home.  First, we finance the majority of the purchase price (75% - 80%) using a standard CONVENTIONAL loan, and then cover another portion (10% - 15%) with a second loan: a Home Equity Line of Credit.  Your down payment (10%), plus both loans, adds up to 100% of the total purchase price   Both loans close on the same day.

About HELOC Financing

The Home Equity Line of Credit (HELOC) is an open-end revolving line of credit with interest-only payments for the first 10 years.  The rate fluctuates monthly with the Prime rate. You may pay this line down as quickly as wish to reduce interest charges over time.

A HELOC functions for the first 10 years similar to a credit card, in that as you pay down the balance, the more funds become available to spend in emergency situations.  

Why Use COMBO Financing?  
Here are some common examples and their advantages:

LOAN SIZE LIMITS

For most counties in Florida, the maximum loan size for a single-unit homes is currently $510,400. Click HERE for a map listing of all US Counties.

Loan size of the first Conventional loan is limited to the Conventional loan size limit. Currently $510,400.

The Home Equity Line of Credit minimum/ maximum line size:

• $50,000 - $500,000 for Primary Residence/ Owner Occupied
• $50,000 - $250,000 for Second Homes/ Vacation homes

GENERAL QUALIFICATION NOTES

The Underwriting approval for both loans generally follows the same conventional underwriting guidelines for both loans, but may have certain exceptions, such as:

Minimum middle credit score to qualify:

Primary Residences: 700
Second/Vacation Homes: 720

Maximum debt ratio limit:

45% for primary residences
43% for second/vacation homes.

Max Combined Loan-to-Value (both loans):

89.99% for primary residences
85% for second/vacation homes.  

OCCUPANCY

Owner-occupied, Second/Vacation Homes only

ACCEPTABLE HOME TYPES

• Single Family Homes
• Multi-Unit Homes (2-4 units)
• Townhomes / Villas
• Condominiums - Condo association must qualify for a limited financial review (with a 25% down payment and/or combined with a second loan or HELOC), or a full financial review (if down payment < 25%).
• Specialty home types - on a very limited basis. (log homes, dome homes, stilt homes, etc.  For these property types, we suggest our specialty property program.

KEY FEATURES

• Low Down Payment- as little as 10% down required.
• Semi-flexible credit score requirements– scores as low as 700.  (720 for Second Homes)
• Gift Funds from a family member are acceptable
• Allows for non-occupying co-borrowers (family can help co-sign on the loan to qualify)
• Self-Employed borrowers - most recent year's tax return can be used to qualify for income (instead of averaging two years)  **Must be in business for 5 years, otherwise the traditional method of averaging the most recent two years tax returns applies.)
• Interested Party Contributions (IPC's)- up to 6% - 9% of purchase price, depending on down payment.  The following are all considered 'Interested parties': Sellers, Realtors, Builders, etc.)
  • Owner Occupied or Second/Vacation Home
    • If the LTV of the first loan is ≤ 90% of purchase price, the max contribution max is 6%
    • If the LTV of the first loan is ≤ 75% of purchase price, the max contribution max is 9%