To apply for a home purchase combination loan, begin by securing pre-approval from multiple lenders to understand your budget and loan options. Combination loans typically blend fixed-rate and adjustable-rate mortgages (ARMs) or conforming and non-conforming loans. Gather essential documents such as pay stubs, tax returns, bank statements, and W-2 forms. Compare lenders for competitive rates, ensuring they offer flexible terms that align with your long-term financial goals. Once a lender is selected, submit a full application with the property details, purchase agreement, and underwriting requirements. The lender will assess your creditworthiness, property value via appraisal, and finalize the loan terms. Sign closing documents to complete the transaction.

This process ensures structured financial planning and risk mitigation. Combination loans, often used to optimize affordability, allow borrowers to balance low initial rates (e.g., ARMs) with stability (e.g., fixed-rate components). According to the Federal Housing Finance Agency (FHFA), 35% of U.S. homebuyers used hybrid loans in 2022, with ARM selections rising 18% year-over-year to save upfront costs. However, the Consumer Financial Protection Bureau (CFPB) notes that 20% of combination loan applicants face payment spikes post-rate adjustment, underscoring the need for thorough rate-risk analysis. Additionally, a 2023 National Association of Realtors report found that pre-approval reduces offer rejection by 50%, highlighting its role in streamlining applications. Lenders also prioritize borrowers with credit scores above 740, who secure rates 0.5% lower than those below 620, per FICO data. Thus, meticulous preparation and lender comparison are critical to balancing cost efficiency and long-term financial health.