Breaking: Higher limits on conforming high balance loans start now
Guaranteed Rate Affinity is announcing new Expanded Loan Amount High Balance products available for borrowers looking to spend more on a home. Starting today, qualified borrowers in select counties can get more home, without the need to get a jumbo loan.
You don’t have to wait for the Federal Housing Finance Agency (FHFA) to update their guidelines in 2022 to take advantage of these higher limits.
Why this matters to you
High balance loans are considered conforming loans by the FHFA, which allows you to avoid the stricter qualifying guidelines that are often associated with a jumbo loan. Since jumbo loans aren’t guaranteed by Freddie Mac or Fannie Mae, they are considered riskier by many lenders, who will require more down payment from a buyer, as well as a higher credit score.
You can choose between loan options of 15- and 30-year terms and they must fall between the local limits of $625,001 and $937,500. These loans are for properties in what are considered “high cost” counties in these states:
- Washington, D.C.
- New Jersey
- West Virginia
You can use these products for your primary residence, a second home or a single-unit investment property. You can also use these products in a refinance of your current home, with rate and term refinancing options (95% Loan to Value) and cash-out refinancing (80% LTV, 75% LTV if second home or investment property).
Interested in finding out if these products are available in your county? Contact a loan officer today and find out if you’re eligible.
$625,001 - $937,500 loan limit update. Conventional conforming loans only. Effective 10/08/21 through 12/31/2021. Only eligible in California, Washington, D.C., Idaho, Maryland, Massachusetts, New Jersey, Pennsylvania, Virginia, Washington, West Virginia, and Wyoming. Contact Guaranteed Rate Affinity for more information. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate Affinity for current rates and for more information.
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