What are combo loans? When are they used? Why are they useful?
Combo loans refer to the use of two or more loans to finance your home purchase or finance. Combo loans are typically used whenever a consumer is borrowing more than 80% of the value of his/her home, or when the borrower needs to use more than one loan to qualify. Combo loans are especially useful for two reasons: a) by using combo loans, you can avoid paying PMI (Private Mortgage Insurance), and b) using combo loans can lower your overall monthly payment.
