New High Balance Loans Now Available - Jim Wilson, Preferred Mortgage
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Jim Wilson, Broker / Principal

Preferred Mortgage, Inc.

New High Balance Loans Now Available

What are these new High Balance Loans?

Preferred Mortgage, through a partnership with one of the largest wholesale lenders in the nation, has been selected to offer a new high balance Fannie Mae loan product to finance properties in Contra Costa, Alameda, Solano, and San Joaquin counties. Purchase prices in these high-cost areas typically exceed conventional loan limits, which often forces borrowers into jumbo loans.

For example, the conventional loan limit on a single family residence is currently $460,000 in Solano County, yet homes in some areas, such as Fairfield or Green Valley, often sell for between $800,000 and $1,000,000. Jumbo loans are one option many potential borrowers explore, but they come with higher interest rates, larger down payments, and hefty cash reserve requirements. Fannie Mae’s new high balance loan is a conventional loan, but with a higher limit. In Solano County, we can now go as high as $726,525.

How can these loans help you purchase?

Being in California means you are probably aware of Fannie Mae’s conventional loan limits and the associated challenges involved in getting financing for homes in higher cost areas. Deals often fall through because borrowers can’t meet the down payment or cash reserve requirements of a jumbo loan.

With the added flexibility of our high balance loans, you’ll be better equipped to help your clients purchase the homes they really want without having to compromise on neighborhood or price. Since our lending partner has worked out a deal directly with Fannie Mae, these high balance loans are currently not available from banks.

  • More Flexibility — We’re able to help you obtain a much larger loan without the hurdles of a jumbo loan.
  • Higher Loan Limits — This is still a conventional Fannie Mae loan, but with higher limits for homes in high cost California counties like Solano County, San Joaquin County, Alameda County and Contra Costa County.
  • Another Option — A high balance Fannie Mae loan provides you with a potential solution to get into a house you might not otherwise qualify for.
  • Buyer Satisfaction — Rather than seeing deals crumble (and hearts break) or limiting a search to a lower price range in a less desirable community, these loans could open the doors to your dream home.

How do they compare to Jumbo Loans?

Most buyers cannot qualify for jumbo loans. For those who do, higher interest rates, higher down payments, and six-to-nine months’ cash reserve requirements make jumbo loans a costly choice. In fact, some lenders will require a full 12 months of cash reserves. Fannie Mae’s new high balance conventional loans are much easier for borrowers to qualify for and less costly. They’re also more flexible with credit scores, allowing scores as low as 620 instead of the typical 700 to 720 minimum scores required by many standard lenders.

  • Easier for Borrowers to Qualify (compared to jumbo loans)
  • Lower Down Payments
  • No Cash Reserves
  • Lower Interest Rates
  • Lower Minimum Credit Score of 620

Download Loan Application (PDF)