High Balance Conforming And Jumbo Mortgage Guidelines

This Article Is About High Balance Conforming And Jumbo Mortgage Guidelines

How Can I Qualify For A High Balance Conforming Home Mortgage? In order to qualify for a high balance conforming or high-cost FHA loan, the property needs to be in a county that has been designated as high-cost. Many counties in the United States are classified as high-cost areas. California has the highest number of high-cost counties out of any area in the United States. High-balance loans have significantly higher loan limits than traditional areas.

Rising Home Prices With No Signs Of A Housing Correction

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, have 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 2021 is now capped at $548,250. FHFA has increased conforming loan limits for three consecutive years in a row due to rising home values. HUD followed in FHFA’s 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 2021, High Balance and Conforming Mortgage Loan Limits have increased as well. High Balance Conforming and Jumbo Mortgage Loan Limits rose to $822.375 from $726,525. FHA and VA Jumbo Loans in high-cost areas are now set at $822.375.

Traditional Versus Non-Traditional Jumbo Mortgages

What are 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 the conforming loan limit ends. High-balance conforming loans are loans that are higher than the traditional standard conforming loan limit of $548.250. Any loans higher than $548,250 are considered jumbo loans. Jumbo FHA and Jumbo VA Loans are loans higher than $548.250. They are called high-balance government loans. Any conforming loans higher than $548,250 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 a 3% to 5%, down payment, mortgage insurance is required on conventional loans. 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 is possible and is called lender-paid mortgage insurance (LPMI). High-balance conforming loans are available for primary and secondary homes that are eligible. Refinance cash-out options available up to 80% loan-to-value on high balance conforming loans.

Jumbo Mortgage Guidelines

What are the guidelines for Jumbo mortgages

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
  • 95% CLTV Jumbo Mortgage Loan Program with a piggyback second mortgage
  • 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

Qualify Today On Your High Balance Conforming And Jumbo Mortgage With Gustan Cho Associates

Gustan Cho Associates are experts in helping borrowers with qualifying for jumbo loans. We have both traditional and non-QM jumbo mortgages. GCA Mortgage has a traditional 90% LTV jumbo mortgage loan program with up to a 50% debt to income ratio and credit scores down to a 660 FICO. We also have non-QM jumbo mortgages with credit scores down to a 500 FICO. We can help self-employed borrowers qualify for a 12-month bank statement mortgage loan with no income tax returns required. Gustan Cho Associates are mortgage bankers and correspondent lenders with the ability to broker mortgage loans. We have dozens of relationships with non-QM and alternative financing mortgage lenders. Borrowers can 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 [email protected] Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Gustan Cho Associates is known nationally for not having any lender overlays on government and conventional loans. We also have dozens of wholesale lending partnerships with non-QM wholesale lenders. Over 75% of our borrowers are folks who could not qualify at other lenders. When borrowers get denied at other lenders, they come to us at Gustan Cho Associates to get qualified and close on their home loans.

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