Is there a maximum combined loan-to-value limit?
It depends on the subordinate financing. If there is a seasoned second lien (12 months or more), there is no CLTV limit provided the lien is subordinated to the FHA loan and it has been paid as agreed. If the transaction is a purchase with a new second lien, the CLTV cannot exceed 100% of the acquisition costs (sales price plus allowable eligible borrower-paid closing costs, energy efficient improvement costs, discount points, and rehabilitation expenses).
