Option for Expensive Homes
What is a High-Balance Loan?
A High-Balance Loan is a type of mortgage designed for homebuyers in high-cost areas where property values exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans provide the necessary financing to purchase homes in expensive markets while offering competitive terms and rates.
Key Features:
Higher Loan Limits: High-Balance Loans offer increased loan limits, allowing you to finance properties in high-cost areas that exceed standard conforming limits.
Competitive Interest Rates: Enjoy competitive interest rates that make your monthly mortgage payments more affordable, even with larger loan amounts.
Flexible Loan Terms: Choose from a variety of loan terms, typically ranging from 15 to 30 years, allowing you to select the best option for your financial goals.
No Private Mortgage Insurance (PMI): High-Balance Loans typically do not require PMI with a sufficient down payment, reducing your monthly expenses.
Customizable Solutions: High-Balance Loans can be tailored to meet your unique financial situation, providing personalized options to fit your needs.
High-Balance Loan Terms:
Loan Amount: Exceeds conforming loan limits but within the high-balance limit set by the FHFA, varying based on location and property type.
Loan Term: Typically 15 to 30 years, with options for shorter or longer terms.
Interest Rate: Competitive fixed or adjustable rates determined by the borrower’s credit profile and market conditions.
Eligibility Requirements: Proof of income, strong credit history, and ability to repay the loan.
Additional Costs: Appraisal fees, closing costs, and other associated expenses.
Allow borrowers to finance expensive homes, but come with higher interest rates and stricter qualifying criteria to mitigate the increased risk to the lender.”
