
High Balance Loan Feature Form
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People also ask
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What does high-balance loan mean?
Unsecured loans do not require collateral and rely on the borrower's creditworthiness. Examples include personal loans, education loans, and credit cards. These loans often have higher interest rates due to the absence of security.
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What does high balance loan mean?
A high-balance loan — also referred to as a conforming high-balance loan or a super-conforming loan — is given to home buyers in high-income areas. It exceeds national conventional loan limits but meets local loan limits. Unlike jumbo loans, high-balance loans are backed by Fannie Mae and Freddie Mac.
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What is considered an FHA high balance loan?
FHA loans between $806,500 and $1,209,750 in Los Angeles County are considered high-balance FHA loans. FHA high-balance loans tend to have slightly higher interest rates than FHA loans under $806,500 (“low-balance”).
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What is the difference between a high balance and a jumbo loan?
Because high-balance loans still fall under the FHFA's local limits, they are considered conforming loans. If you want to borrow an amount even higher, though, you'll be looking at a jumbo loan. Here's a map of conforming loan limits by county.
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Do high balance loans have higher interest rates?
You'll have more buying power with a jumbo loan than with a conforming loan, but you'll pay more in interest since your balance is bigger. To qualify for a jumbo loan, you'll need a higher credit score — and possibly a higher income, down payment or more assets — than you would for a conforming loan.
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What type of loan has the highest interest rate?
A high-balance loan — also referred to as a conforming high-balance loan or a super-conforming loan — is given to home buyers in high-income areas. It exceeds national conventional loan limits but meets local loan limits. Unlike jumbo loans, high-balance loans are backed by Fannie Mae and Freddie Mac.
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