In this episode, we talked about combo mortgages. In most cases, we talk about these when someone needs a loan above the maximum conventional loan limit of $484,000. A combo mortgage will help you bridge a gap and get a little more money.
Let’s look at an example.
So, Bob comes to us and he has a house that he wants to buy for $600,000 and he wants to put 10% down. This comes out to $60,000 which leaves us with $540,000 left. Now because of the conventional loan limit of $484,000, he’ll need a second mortgage of $56,000.
There are two ways to go about this. One is to just close out on the loans. In this case, you would put the minimum of 10% down and you would need the second loan to close in order to purchase your house. The second option is that it is possible to close the first loan and use the second to keep a home equity line of credit open afterward. This would be if you didn’t need it to buy the house.
Combo loans are best for people who have a good credit score and when looking at properties that cost under $1 million. One of the things we like about this loan is that the rules are less strict on this product than on a jumbo loan, the financing rules for which are very strict. In the case of combo loans, you don’t have to be perfect like you do in a jumbo scenario. There is, however, a loan limit on the second mortgage of $500,000.
If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to firstname.lastname@example.org or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.
Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST