Fannie Mae "High Balance Loan" Question

Yes and No.. you are in a "High Cost Area" and Fannie does say they will insure that loan product, however the lenders who have the $$ can make up their own rules... and it looks like the lender you're dealing with is asking for 10%.. This is not uncommon, and you might find it difficult to find another lender willing to lend with only 5% down.. Your other option is to use FHA financing.. With FHA, you can go 3.5% down up to $759K loan amount. There is an Upfront MI premium (FHA will finance it) of 1% and there is a monthly mortgage insurance as well, but it would be comparable to what you would have paid if you can find a conventional lender willing to do 5% down. I think the mistake your making is you're probably dealing with the local bank.. so the best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

As others have said, any loan over $417,000 is considered high balance or "jumbo" in the mortgage industry. Many lenders require a larger percentage down payment along with higher credit scores. However, you do have options available to you starting from a 620 credit score and 3.5% down payment. We specialize in NY and NJ and I can meet with you to discuss your option. Call me at 908-933-0253 ask for Peter. Or you can call me on my cell 347-231-4444 email: pbotros@omegaloans.net

Yes William is correct, a lot of lenders have their own internal overlays. We can go up to $625,000 as long as your county is stating that. Get into touch with me. 888-320-7888 - Ken

The $625 is what fannie mae states what the loan limit is for your county and state..The down payment will be regulated by your credit, and assets, that you have.. Every lender has their own overlays, and Fha might be a good idea