High Balance Loan
A high balance loan is a conventional loan where the loan amount exceeds the conforming loan limits of a conventional loan but does not exceed the loan limit for the high-cost area in which the mortgaged property is located. These loan limits are published by the Federal Housing Finance Agency (FHFA) each year. The conforming loan limit is currently $424,100 and the high-cost are loan limit is $636,150 in the continental U.S.
The underwriting standards are the same as a conventional loan.
The minimum down payment is 5%
The high balance loan amount limits are county specific. For a list of the loan limits, click here.
The high balance loan is appealing to borrowers who are seeking a mortgage that is higher than the conforming loan limit but falls within their high-cost area as jumbo mortgages can carry higher interest rates and have more stringent underwriting requirements.
For more information regarding high balance loans or any questions, please contact us.