Our recently announced, High Balance Solutions and Jumbo Solutions, are two loan options that help maximize options for borrowers when balances exceed conforming loan and conforming high-balance loan limits or when they have less than 20% for a down payment.
Conforming home loan programs follow Fannie Mae and Freddie Mac guidelines and have a maximum loan amount allowed. The new 2017 conforming loan limit for a single family home is generally $424,100 but can be as high as $636,150 in certain high cost areas under the Fannie Mae High Balance loan limits.
Our High Balance and Jumbo Solutions are combo loans that allow for a loan to be split between a first and second mortgage, resulting in what is known as an 80-10-10 loan. The first loan is typically for 80 percent of the purchase price while the second loan takes care of another 10 percent. The 10 percent down payment makes up the rest. These could be good options for borrowers who don't want the added payment of mortgage insurance and don’t have enough money for a 20% down payment. Read below to learn more about these programs.
If you are looking to finance a home that exceeds conforming loan limits ($424,100) our High Balance Solutions program will get the deal done. Under this program, you can split the loan amount between an 80% first mortgage and 10% second mortgage, and 10% down payment. This may result in lower monthly payments due to potentially lower rates available through conforming mortgage products. The combination financing also helps to eliminate mortgage insurance requirements.
The Jumbo Solutions loan program is a “sister” program to our High Balance Solutions program and works the same way. The Jumbo Solutions program can be used if you are looking to finance a home with a loan amount that exceeds conforming high balance loan limits. This max loan amount ranges but tends to be more than $636,150, depending on county.
If the list below applies to you, then our High Balance or Jumbo Solutions loan programs may be the right fit:
Purchasing a home is an exciting experience, but it all starts with choosing your path. APM Loan Advisors are always available to answer questions and guide you through your journey.