Understanding the FHA 100% CLTV Combo and Its Benefits
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Introduction to FHA 100% CLTV Combo
The FHA 100% CLTV (Combined Loan-to-Value) Combo is a financing option that allows homebuyers to finance the full purchase price of a home using a combination of an FHA first mortgage and an additional second mortgage or down payment assistance. This option is designed for buyers who may not have the funds for a down payment but still want to take advantage of FHA loan benefits, such as lower credit score requirements and competitive interest rates.
Benefits of FHA 100% CLTV Combo
- No Down Payment Required: With the 100% CLTV Combo, borrowers can finance the entire purchase price of their home, eliminating the need for a traditional down payment.
- Accessibility for First-Time Homebuyers: This option is particularly beneficial for first-time homebuyers who may struggle to save for a down payment but are otherwise financially ready for homeownership.
- Lower Credit Score Requirements: FHA loans are known for their more lenient credit score requirements, making this option accessible to a broader range of borrowers.
- Competitive Interest Rates: Despite the higher loan amount, borrowers can still benefit from competitive interest rates offered by FHA loans.
- Flexibility in Financing: The combination of the first mortgage and a second loan or down payment assistance provides flexibility in financing, allowing borrowers to structure their mortgage in a way that best fits their financial situation.
How the FHA 100% CLTV Combo Works
In this financing arrangement, the FHA first mortgage covers a significant portion of the home’s purchase price, while a second loan or assistance program covers the remainder, effectively bringing the Combined Loan-to-Value ratio to 100%. This means the borrower can finance 100% of the home’s cost without needing to provide cash up front.
Take the Next Step with Southeast Funding Group
Call Lazaro Sosa directly at 305.281.2245 for a free consultation or apply online. Let’s explore how the FHA 100% CLTV Combo can help you achieve your homeownership dreams with a tailored financing solution that fits your needs.