Conventional High Balance is a type of mortgage loan that exceeds the standard conforming loan limits set by the Federal Housing Finance Agency (FHFA) for conventional loans. In most areas of the United States, the conforming loan limit for a conventional loan is $548,250 for 2021, but in some high-cost areas, it can be higher. A conventional high balance loan is designed to help borrowers who need to finance a property in an area where the cost of housing is higher than the standard loan limits.
These loans usually require a higher down payment and credit score than standard conforming loans, and they may also have stricter debt-to-income ratio requirements. However, they can offer more flexible terms and competitive interest rates, which can help borrowers save money over the life of the loan.
One advantage of a conventional high balance loan is that it allows borrowers to finance a larger amount of their home purchase or refinance, which can be especially beneficial in high-cost areas where housing prices are significantly higher than the standard loan limits. This type of loan is available through many lenders and can be a good option for borrowers who have a strong credit history and a substantial down payment but need to borrow more than the standard loan limits allow. Arigato Capital is a specialist in dealing with these kinds of conventional agency mortgages and will guide you through the entire loan process.
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