High-Balance Loan
A conforming loan in a designated high-cost area that exceeds the standard conforming limit but stays within a higher local ceiling.
Each year FHFA publishes a baseline conforming loan limit applicable nationwide, plus higher ceilings for designated high-cost counties, places like the Bay Area, parts of New York, and select metros where median home prices are well above the national average.
A loan amount above the baseline limit but at or below the local high-cost ceiling is a high-balance conforming loan. It's still eligible for Fannie Mae or Freddie Mac purchase, but typically priced slightly higher than a standard conforming loan because of marginally higher risk.
If your purchase falls between the baseline and the local high-cost ceiling, a high-balance conforming product almost always beats a jumbo loan on rate and underwriting flexibility, so it's worth confirming your county's specific limit before assuming you need jumbo financing.
Related terms
Other terms you'll see alongside High-Balance Loan
A conventional loan whose amount falls within the limit eligible to be purchased by Fannie Mae or Freddie Mac.
A mortgage that exceeds the conforming loan limit and therefore cannot be sold to Fannie Mae or Freddie Mac.
Mortgages not insured or guaranteed by a government agency, typically sold to Fannie Mae or Freddie Mac.
The Federal National Mortgage Association, a government-sponsored enterprise that buys conventional loans from lenders.
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