A Combo-Mortgage works by combining a first mortgage, with a home equity loan to allow you a lower down payment while avoiding the need for private mortgage insurance.
With a combo-mortgage 80% of your home’s value is financed by your first mortgage and an additional 10% is financed by a home equity loan, leaving only 10% left for your down payment. This allows you to avoid PMI, which is typically required if your down payment is less than 20%.
There are many benefits to this loan including:
- Fixed rates on both loans
- More affordable monthly payments
- Ability to qualify for a higher loan amount
- Pay off your home quicker due to the shorter term of the home equity loan
- One loan closing process
*Available for 1 family and eligible condominiums, owner occupied primary residence. Offer subject to credit approval and subject to change without notice.