When it comes to picking out the right mortgage for your needs, it can feel like the options are overwhelming and numerous. The good news is that with Mortgage Base, you never have to feel uncertain of what loan will best fit your needs. Our expert team is here to assist you in choosing the perfect mortgage to match exactly what you are looking for and to ensure you can finance your next purchase.
Here at Mortgage Base, one of our loan specialties is super conforming mortgages. The reality is that for many homebuyers or those who are investing in properties, a traditional loan does not provide enough funding to meet their needs. This is where our options for higher maximum limits can be of assistance. Read on to learn more about super conforming / high balance mortgages.
Super Conforming Vs. High Balance
To begin with, super conforming and high balance mortgages are synonymous terms referring to the same loan type. This loan is one that exceeds the current 2018 Fannie Mae single-family loan limit of $453,100 for the lower 48 states. A super conforming mortgage was designed to address high-cost areas around the country by providing an increased maximum loan limit. These loans can go as high as $679,650 for a single-family home or condominium depending on the property location.
To determine what super conforming mortgage you will be eligible for, research will need to be done to assess the location of the property in question. The following are high balance and super conforming mortgage loan amount ranges for 2018 (Alaska & Hawaii have higher limits):
Property Type: Single Family/Condo
Minimum loan amount >$453,100 | Maximum loan amount $679,650
Property Type: 2 Unit Properties
Minimum loan amount >$580,150 | Maximum loan amount $870,225
Property Type: 3 Unit Properties
Minimum loan amount >$701,250 | Maximum loan amount $1,051,875
Property Type: 4 Unit Properties
Minimum loan amount >$871,450 | Maximum loan amount $1,307,175
* Actual maximum loan limits are set per county or equivalent area and may be lower than the maximum above.
Understanding The Purpose Of This Mortgage Type
As touched on above, this mortgage is designed to help out in situations where a conforming loan will not meet the cost of the housing in the area. The following are examples of when this might apply.
- High-Cost Area: You can utilize a super conforming loan when you are purchasing a property in a high-cost area where a traditional mortgage will not cover the costs.
- Vacation Home: Interested in purchasing a second home in a luxury location? A super conforming mortgage might be the right choice for this luxury vacation property.
- Investment Properties: Multi-family housing often exceeds the limits of a conforming loan. A high balance mortgage can be utilized for this investment instead.
- Refinancing Your Home: If you want to refinance your home and you don’t want to utilize multiple mortgages to do so, a high balance mortgage can be the best method for refinancing.
The benefit of a super conforming mortgage over a jumbo loan is that it usually boasts a lower mortgage rate. This makes it a great option if the costs of a jumbo loan exceed what you want. It is also a great option due to the flexibility of credit scores accepted. If you have concerns about your credit score precluding you from the home of your dreams, a high balance mortgage might be the right solution.
How You Should Secure A Super Conforming Mortgage
If you believe this mortgage type is the right fit for your needs or you simply want to know more about the specifics of acquiring a high balance mortgage, we can help. Our team is ready to assist you by guiding you through the mortgage application process and, due to our years of experience in the industry, we can lead you to the ideal choice for your needs.
Instead of feeling overwhelmed or giving up on the property of your dreams, reach out and inquire about our unique loan options. We specialize in helping homebuyers gain the funding they need to make their dreams a reality. Whether you are looking to invest in a new rental property or you are finally ready to purchase your dream vacation home, we will work with you to ensure you find the right mortgage for your situation. Talk to us today and get started on an application for a super conforming mortgage.