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FLORIDA
SINCE 1995
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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.  

At a Glance

Minimum Down Payment

≥ 10%

Minimum mid-credit score

700 (for 90% total combined loan amounts on an Owner-Occupied Home)

720 (for 85% total combined loan amounts for a Second/Vacation Home)

PMI (Private Mortgage Insurance)

None, as long as the Conventional 1st loan is ≤ 80% of the purchase price

Occupancy

Owner Occupied and Second Homes Only

Min/ Max Loan Amount

$100,000 - $510,400 (1st Conventional Loan)
$50,000 - $500,000 (HELOC)

Loan Repayment Terms

30 Year Fixed Rate (1st Conventional Loan)Interest-Only Credit Line (HELOC)

Maximum Debt-vs-Income Ratio

45% of all debts, including the new home  (Owner-Occupied Home)

43% of all debts, including the new home  (Second/Vacation Home)

Prepayment Penalties

None

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:

 

GET PRE-APPROVED TODAY

3 easy steps.  No cost/obligation

GET PRE-APPROVED FOR A COMBO LOAN TODAY

3 easy steps.  No cost/obligation

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%

NON-US Citizen Requirements

EXAMPLE 1: AVOID JUMBO FINANCING

Easier to Qualify vs Jumbo.  
When it comes to qualifying, Jumbo financing can be much more challenging than Conventional financing.  For example, if you have a recent housing event such as a foreclosure, bankruptcy, short sale, etc in your history, you may not qualify for a jumbo loan, depending on the event. With our COMBO loan, we use Conventional underwriting guidelines, which are less strict than Jumbo. If you have had a recent housing event, be sure to see our Waiting Period Chart for Conventional Financing before applying for a COMBO loan.

Lower down payment requirement & Fixed Rates.  Jumbo financing often requires a higher down payment than 10%. Also with most Jumbo financing programs, the interest rate is usually only fixed for 5 - 10 years.  With a COMBO, the majority of the financing is fixed for 30 years.

EXAMPLE 2: CONDOMINIUM FINANCING

Easier Qualification for Condominiums  
When buying a condominium with Conventional financing, the condo association must qualify for the loan, in addition to the buyer.  

Here is where COMBO Financing is helpful.

When it comes to Conventional financing, if the amount of the first loan is greater than 75% of the purchase price, then the condominium must provide a much more rigorous and time-consuming condominium approval process (this is a called a "Full Review"); however if the first Conventional loan is equal or less than 75% of the purchase price, the condominium approval is based on the answers of a short survey that is completed by the condominium association (referred to as a "limited review"), instead of a full review of hundreds or thousands of pages.  

Sometimes, getting a limited review can mean the difference between successful loan approval or a denial.

COMBO HELOC Financing Example Basic

Example:

COMBO LOAN STRATEGY

TO AVOID JUMBO FINANCING

Example Home Purchase Price:  
$750,000

$510,400
Conventional Loan
(68% of purchase price)

$75,000
Down Payment
(~10% of purchase price)

$164,600
Second Loan (HELOC)
(~22% of purchase price)

In this example, we've structured the first loan at $510,400 (the maximum conventional loan size) so that the majority of the financing is at a fixed interest rate.  Then created a HELOC to fill the rest up to 90% of the purchase price.  After that, the down payment completes the rest.

COMBO HELOC Financing Example Basic

Example:

COMBO LOAN STRATEGY

TO AVOID A FULL CONDO REVIEW

Example Condo Purchase Price:  
$350,000

$262,500
Conventional Loan
(75% of purchase price)

$35,000
Down Payment
(10% of purchase price)

$52,500
Second Loan (HELOC)
(25% of purchase price)

In this example, we've structured the first loan at $262,500 (75% of the purchase price) so which means we can do a "limited" review of the condominium.  Then created a HELOC to fill the rest up to 90% of the purchase price.  After that, the down payment completes the rest.

Unconventionallending.com

Unconventionallending.com

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