In Agency High Balance Loan areas, the use of a high loan to value HELOC is a great way to stretch your purchasing power and reduce your down payment.

For example, in Arlington County VA the Agency (Fannie Mae/Freddie Mac) High Balance Loan Limit is $625,500. Taking out a first mortgage at 80% or less (in order to avoid mortgage insurance) and a HELOC for the balance up to 90% or $750,000, whichever is less, is allowable. Having an Agency loan at a historic fixed interest rate, and minimizing out of pocket cost is a win win....