High Balance Loan Amount: Conventional and VA Options

If you're looking to purchase a home with a high balance loan amount, you'll want to explore your conventional and VA options. For conventional loans, the maximum loan amount varies by county, but in high-cost areas, it can be as high as $625,500.

The good news is that you don't have to break the bank to afford a high balance loan. With a conventional loan, you can finance up to 95% of the purchase price, which can help reduce your down payment.

In areas with high home prices, the VA loan limit is also higher, often matching the conventional loan limit. This means you can borrow up to $625,500 with a VA loan, depending on the county you live in.

In the Carolinas, the jumbo loan limit is $510,400 for most of the state, but it's essential to know that these rates can change annually.

If you're looking to buy a home in areas like Camden, Gates, or Currituck, you'll need a jumbo loan if you're borrowing more than $510,400. However, in these counties, the jumbo loan limit increases to $625,500.

In some parts of California, you only need a jumbo loan if you're borrowing more than $765,600, which is a great example of how jumbo loan limits vary based on location.

Securing a high balance loan can be a game-changer for homebuyers who want to purchase a more expensive property.

These loans can be a route to buying that waterfront home or larger estate, but only if you're willing to make a large down payment.

They tend to be harder to obtain, requiring a larger amount of income and proof of income, credit score, and a larger down payment.

The benefits of jumbo loans are clear: they allow you to purchase and finance a home worth more than the typical mortgage limit. This is especially useful for borrowers who want to buy a waterfront home or a larger estate.

One of the main drawbacks of jumbo loans is that they're harder to obtain, requiring a larger amount of income. You'll also need to show proof of income, credit score, and have a larger down payment to purchase them.

Jumbo loans have more flexibility for loan rates and terms, making them a good option for those who want to qualify for a lower mortgage interest rate. If you're a high-income earner with a credit score between 620 and 699, a jumbo loan might be the way to go.

Here's a comparison of high-balance and jumbo loans to help you decide:

Jumbo loans typically have stricter requirements than high-balance loans, but they offer more flexibility in terms of loan rates and terms.

The VA Advantage is a game-changer for veterans looking to purchase or refinance a home. With a VA jumbo loan, you can borrow up to $4,000,000 with 100% financing.

One of the biggest advantages of VA jumbo loans is that they don't require monthly private mortgage insurance (PMI). This means your mortgage payments will be lower, giving you more borrowing power.

VA jumbo loans also offer a single loan program, eliminating the need for a piggyback or second mortgage. This simplifies the process and reduces costs.

Temporary mortgage interest rate buydowns are available, offering 2/1 or 3/2/1 options that can be paid by the home seller. This can be a great option for buyers looking to combat rising interest rates.

Here are the key benefits of VA jumbo loans at a glance:

High Balance Loans can be broadly categorized into two main types: Jumbo Loans and Conventional Loans. Jumbo Loans are designed for larger loan amounts, typically exceeding the conforming loan limits.

Jumbo Loans are often compared to Conventional Loans, which are the most common type of conforming loan. Conventional Loans have lower loan limits, making them suitable for smaller homes or lower-priced areas.

Interest rates for Jumbo Loans can be higher due to the increased risk for the lender, but rates are competitive across most lenders if you have a good credit score and income to make payments.

Conventional loans are the most common type of conforming loan, and they're often compared to jumbo loans. The biggest difference between jumbo loans and conventional loans is the size of the loan, which can impact your borrowing options.

Conventional loan down payments may range from 5% up to 20%. In contrast, some jumbo loans require a minimum down payment of 20%.

Interest rates for conventional loans are generally competitive, but jumbo loan rates can be higher due to the increased risk for the lender. If you have a good credit score and income, you may be able to secure a competitive rate for a jumbo loan.

The VA loan option is a game-changer for veterans looking to finance a home with a high sales price. Borrowers can use the VA home loan benefit to buy and finance a home, even if the sales price is more than the VA limits allow.

One of the best parts about VA jumbo loans is that normal VA loan rates still apply, with no monthly PMI. This keeps payments as low as possible, increasing the veteran's borrowing power.

VA jumbo loans are available for loans up to $4 million, and veterans with full entitlement can get 100% financing. However, vets borrowing over $2 million will need to document adequate mortgage payment reserves, generally 9-12 months.

The VA loan program is unique in that it's the only form of mortgage insurance associated with the program is the funding fee, which is rolled into the final loan amount. This means there's no monthly mortgage insurance (PMI) payment.

Here are some key benefits of VA jumbo loans: