High Balance Conforming And Jumbo Mortgage Guidelines


This BLOG On High Balance Conforming And Jumbo Mortgage Guidelines Was PUBLISHED On January 13th, 2019

Home prices have been increasing with no signs of correction since 2012.

  • Many areas in California, Florida, Mississippi, Kentucky, New Jersey, Pennsylvania, Colorado, Michigan, Georgia, Indiana, Illinois, has seen double-digit price appreciation
  • Home values in these areas, as well as most states, have been increasing despite the highest mortgage rates in 10 years
  • Homebuilders are enjoying record sales and revenues
  • FHFA has increased conforming loan limits for 2019 to $484,350 from $453,100
  • FHFA has increased conforming loan limits for three consecutive years in a row due to rising home values

HUD followed in FHFA footsteps and raised FHA Loan Limits for 3 years in a row due to rising home values. In this article, we will cover high balance conforming and jumbo mortgage lending guidelines.

What Are High Balance Conforming And Jumbo Mortgage Loans

There are areas in the United States where home prices are substantially higher.

  • Many counties in California are considered high-cost areas
  • There are High Balance Conforming And Jumbo Mortgage Guidelines in high-cost areas
  • With the FHFA raising conforming loan limits for 2019, High Balance and Conforming Mortgage Loan Limits have increased as well
  • High Balance Conforming and Jumbo Mortgage Loan Limits rose to $726,525 from $679,500
  • FHA and VA Jumbo Loans in high-cost areas is now set at $726,525

Traditional Versus Non-Traditional Jumbo Mortgages

Gustan Cho Associates offers traditional and non-QM Jumbo Mortgages. In general and as a right-hand rule, Jumbo Loans start when conforming loan limit ends.

  • High balance conforming loans are loans that are higher than the traditional standard conforming loan limit of $484,350
  • Any loans higher than $484,350 are considered jumbo loans
  • Jumbo FHA and Jumbo VA Loans are any loans higher than $484,350
  • They are called high balance government loans
  • Any conforming loans higher than $484,350 are called high balance conventional loans
  • Traditional and NON-QM Jumbo Loans are not backed by Freddie Mac or Fannie Mae.

Benefits Of High Balance Conforming Loans

There are many counties in the U.S. that are considered high-cost areas. 

  • There are many U.S. counties that are considered high-cost areas
  • Borrowers in high-cost areas can qualify for high balance conforming loans with conventional mortgage rates
  • With just 3% to 5%, down payment with no mortgage insurance is required
  • Typically, buying out mortgage insurance is cheaper than lender paid mortgage insurance
  • Buying out private mortgage insurance with an upfront premium requires no annual mortgage insurance
  • High balance conforming loans is available for primary and secondary homes are eligible
  • Refinance cash-out options available up to 80% loan-to-value on high balance conforming loans

Jumbo Mortgage Guidelines 

Gustan Cho Associates offers various traditional and non-traditional Jumbo Loan Programs.

  • Jumbo Loans are also referred to as non-conforming loans
  • This is because they do not conform to Fannie Mae and/or Freddie Mac Guidelines
  • Any home loan that is higher than conforming loan limits, including high balance conventional loans, are referred to as Jumbo Loans

Gustan Cho Associates has some great NON-QM Jumbo Mortgage Loans for higher-end home buyers:

  • Closing in 30 days or less
  • 5% down payment NON-QM Jumbo Loans
  • Jumbo Loans with credit scores as low as 500 FICO
  • One to four units
  • No private mortgage insurance
  • Jumbo Loans with loan limits up to $3 million
  • Bank statement loan program for self-employed borrowers
  • Asset depletion loan programs

Contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for a faster response for more information. Or email us at gcho@gustancho.com. Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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