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Good news for homebuyers! The FHA 100% CLTV Combo Program is now available and designed to help more families achieve homeownership without the traditional upfront cost. This program allows eligible buyers to finance 100% of the home purchase price, combining a low-interest FHA first mortgage with a second lien to cover the required 3.5% down payment and even some closing costs.

Program Highlights

• No Down Payment Required -  Borrowers receive a 96.5% FHA first mortgage and a 3.5% second mortgage, eliminating the need for out-of-pocket down payment.
• Not Just for First-Time Buyers -  You don’t need to be a first-time homebuyer to qualify.
• Low Credit Score Requirement -  Minimum credit score starts at 600 with AUS approval. Manual underwrites require a 660 score.
• Primary Residences Only -  Eligible for single-family homes, FHA-approved condos, and 2-unit properties.
• Homebuyer Education Required -  At least one borrower must complete a HUD-approved course.
• No Cash Back or Seller Credit Abuse -  All funds must be used solely toward closing or down payment, and seller contributions are capped at 6%.

Realtor Takeaway

This program can help you assist more buyers, especially those who are:

• Struggling to save for a down payment
• Eager to enter the market but have limited cash reserves
• Returning buyers without equity from a previous sale

Plus, with flexible guidelines and 2-1 temporary buydown options, it’s a strong tool to help clients purchase confidently despite today’s rate environment.

Important Reminders

• Available for purchase transactions only
• Maximum loan amounts apply (based on FHA limits)
• Second mortgage interest is typically 2% higher than the first
• All transactions must meet FHA and Plaza Home Mortgage guidelines

Interested in learning if you or your client qualifies? Let’s schedule a complimentary mortgage planning session and see how the FHA 100% CLTV Combo Program can open doors to homeownership.

Equal Housing Lender. Terms subject to change. This blog is for informational purposes.  Rates and annual percentage rates (APRs) vary based on credit profile and loan structure. Not a commitment to lend. Contact us for a personalized quote