Jumbo loans are an important type of loan to consider when you are looking to purchase or refinance a high priced property. 

What is a Jumbo loan?

To sum it up, a Jumbo loan is what it sounds like - it’s a large loan, much larger than what a conventional loan limit may allow. You can see 2021 loan limits HERE.

Loan amounts vary depending on where you are living in the United States. Underwriting guidelines may be tighter with a Jumbo mortgage in terms of credit scores and debt-to-income ratios. 

What’s a High-balance conventional loan?

A High-Balance conventional loan is as a mortgage where the original loan amount exceeds the conforming loan limits published yearly by the Federal Housing Finance Agency (FHFA), but does not exceed the loan limit for the high-cost area in which the mortgaged property is located, as specified by the FHFA. 

Lenders may offer many different mortgage programs, including fixed and adjustable rate terms. 

One of the positives with a conventional high balance loan is that there is usually a lower interest rate and APR in comparison to a jumbo mortgage. 

For a high-balance mortgage, you may need a certain amount of cash reserves and a higher credit score. 

Arc Home is here to help you weigh your options and see which works for you. Give us a call and one of our licensed loan agents can answer any questions you may have!