Finding money for a sufficiently large down-payment can be a challenge, especially with rising home prices. And if you are unable to come up with 20% for the down payment, you may have to pay for costly private mortgage insurance (PMI) which increases your monthly mortgage payments. But not to worry, we can help.
By combining two loans together (a primary loan and a secondary loan), our Combo Loan options gives you the flexibility to have a small down payment, while keeping your monthly mortgage payments lower by eliminating PMI.
Here’s how the Combo Loan works.
- We finance 80% of the cost of the home. This is the primary part of the combo loan.
- Then you decide how big of a down-payment you want to provide: 0%, 5% or 10%.
- We finance remaining balance as a secondary loan (e.g. if you provide a 5% down-payment, we would provide an additional 15% financing as the secondary loan).
This approach lets you finance up to 100% of the cost of the home, and gain home equity quicker with favorable terms.
Details:
- No monthly private mortgage insurance (PMI)
- Combo loan options:
- 80/20 (100% Financing, no down payment)
- 80/15 (95% Financing, 5% down payment)
- 80/10 (90% Financing, 10% down payment)
- Eligible on primary properties only
Maximum 1st TD loan amount up to $1,089,300 based on high-cost county loan limits. Borrower must become member of FIGFCU to qualify and is available
to all Credit Union members who apply for a mortgage, submit and close their loan application. All applications are subject to credit and loan approval.
Not eligible in select states: Alabama, Alaska, Florida, Hawaii, Louisiana.
Maximum 80% CLTV for Texas residents.
Farmers Insurance Federal Credit Union: NMLS# 408877.