High Balance Loan Programs are home mortgages for loans above $417,000 with a maximum loan amount determined by the state and county the property is located in.
Jumbo loans amounts range from $417,001 to $2,000,000. These loan programs are referred to as Nonconforming because they are not Fannie Mae or Freddie Mac products. In today’s current credit markets, jumbo loans are often “portfolio” products which means that they are specific to the bank that developed them. The rates for these loans are not as low as Fannie Mae and Freddie Mac products which are priced in a more competitive marketplace.
This product group was hit hard by the recent collapse of the housing market. There are very few of these programs left and typically they are available only in conjunction with a first mortgage. The Loan to Value (LTV) for these 2nd mortgage products is much lower than in the past, but can often serve to cover the gap between a Fannie Mae / Freddie Mac loan program and the total amount needed to finance your transaction without requiring a Jumbo product.