Overview
In counties where home prices are higher, the Federal Housing Finance Agency sets a higher conforming loan limit. Loans between the baseline limit and the county's high-cost limit are called high-balance conforming loans.
They follow Fannie Mae and Freddie Mac guidelines rather than jumbo guidelines.
How a high-balance loan works
FHFA sets one baseline conforming limit for most of the country and a higher limit in counties where local home values are high enough. In those counties, a conventional loan can exceed the baseline and still be sold to Fannie Mae or Freddie Mac as long as it stays within that county's own limit. Fannie Mae calls these high-balance loans; Freddie Mac calls them super conforming mortgages.
Apart from size, the loan follows the regular agency rulebook: the same documentation standards, mortgage insurance when equity is low and the same occupancy categories. The differences are a short list of added restrictions, including mandatory automated underwriting, separate pricing adjustments and some program combinations that aren't allowed.
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Who a high-balance loan can fit
A high-balance loan only comes into play when two things are true at once: the property is in a county whose limit is above the baseline, and the loan amount falls between the baseline and that county limit.
- A buyer in an expensive metro area whose loan lands just above the baseline
- A homeowner refinancing a balance that grew with local home values who prefers agency guidelines to a jumbo program
- A buyer of a two- to four-unit property in a high-cost county, where per-unit limits are higher
- A household buying a second home or rental in a costly resort or urban county
What restricts a high-balance loan
High-balance loans must meet every standard agency requirement plus a few of their own. Fannie Mae requires each high-balance loan to be a first-lien conventional mortgage underwritten through Desktop Underwriter. Freddie Mac requires submission to Loan Product Advisor and applies the more restrictive rule whenever its super conforming requirements conflict with another offering. Lenders may add overlays for larger balances, such as higher reserve or credit requirements.
Combinations that aren't allowed include:
- Freddie Mac Home Possible and HomeOne mortgages at super conforming amounts
- Freddie Mac super conforming loans on manufactured homes
- Freddie Mac ARMs whose first rate change comes in less than five years
- Fannie Mae's highest financing tier for purchases, including HomeReady at that tier
Why high-balance underwriting is narrower
Credit is evaluated the same way as on any conforming loan, but the underwriting path is narrower. Fannie Mae accepts high-balance loans only with a Desktop Underwriter recommendation, so there is no manual route if DU won't approve the file. Freddie Mac requires every super conforming loan to be submitted to Loan Product Advisor; a file that receives a Caution can be manually underwritten only if it meets Freddie Mac's added requirements for that situation.
Score-based price adjustments apply just as they do on smaller loans, in addition to the high-balance adjustments, and on a larger balance each adjustment affects more dollars. Some lenders also set higher score minimums for larger balances.
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Why high-balance loans call for more equity
Because high-balance loans are shut out of Fannie Mae's highest financing tier for purchases, the minimum down payment is larger than on the agency's most flexible standard loans, and each agency's eligibility matrix sets further limits by occupancy, number of units and loan purpose. The larger loan amount also means a given LTV translates into more cash at closing.
Mortgage insurance is required when the LTV is above the agency threshold. Freddie Mac requires standard coverage on super conforming loans, and Fannie Mae allows financed borrower-paid mortgage insurance only within a cap on the total LTV after the premium is added. Gifts, assistance and seller contributions follow the same agency rules as other conforming loans.
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Home types, occupancy and appraisals for high-balance loans
Freddie Mac's super conforming mortgages can be used for one- to four-unit main homes, second homes and one- to four-unit investment properties. Fannie Mae high-balance loans cover the same occupancy types under its standard rules, with second homes limited to one unit. For a co-op, the loan plus the unit's share of the building's blanket mortgage must fit within the limit.
Valuation gets extra attention at these loan sizes. Freddie Mac doesn't accept super conforming loans valued by an automated valuation model, and Fannie Mae doesn't offer value acceptance when the price or estimated value is $1,000,000 or more. As a result, many high-balance purchases and refinances need a full appraisal.
2026 high-cost limits
For 2026, FHFA's baseline conforming limit for a one-unit home is $832,750, and the high-cost ceiling is $1,249,125. Each high-cost county has its own limit somewhere between those figures, based on local median home values, and many sit well below the ceiling. In Alaska, Hawaii, Guam and the U.S. Virgin Islands, the 2026 one-unit baseline is $1,249,125 and the ceiling is $1,873,675.
Limits are higher for two- to four-unit properties. Elsewhere in the country, the 2026 high-cost ceiling is $1,599,375 for two units, $1,933,200 for three units and $2,402,625 for four units. FHFA publishes every county's limit in a list that changes each January.
A loan is high-balance only when its original amount is above the baseline but within the county limit. Above the county limit, it's a jumbo loan.
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What a high-balance loan offers compared with jumbo
For borrowers near the baseline, the main appeal is staying inside a familiar, standardized rulebook while borrowing more than the baseline allows. The same documentation that works for a standard conforming loan generally works here too.
- Agency underwriting and documentation standards instead of a lender's private jumbo rules
- Mortgage insurance is available, so less equity is needed than many jumbo programs ask for
- Purchase and refinance options for main homes, second homes and rentals
- Reserve and debt-to-income standards come from agency findings, subject to lender overlays
- Fixed-rate options and many adjustable-rate options
See also
Extra cost adjustments and narrower program access
Fannie Mae applies specific price adjustments to every high-balance loan in addition to its other adjustments, and Freddie Mac applies all of its applicable credit fees to super conforming loans, so pricing can differ from a loan at or below the baseline. How much that matters depends on market conditions when you lock, so it's worth comparing options when the loan amount is near either limit.
The restrictions are the other cost. You can't pair a high-balance loan with Home Possible or HomeOne, Fannie Mae's top financing tier is off the table, and Fannie Mae doesn't allow manual underwriting for these loans. A file the automated system won't approve therefore has fewer fallback options.
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Compared with standard conforming and jumbo loans
Features only; pricing depends on the market and your file.
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| Feature | High-balance conforming | Standard conforming | Jumbo |
|---|---|---|---|
| Loan size, 2026, one unit | Above $832,750, up to the county limit | Up to $832,750 in most counties | Above the county limit |
| Rules set by | Fannie Mae or Freddie Mac | Fannie Mae or Freddie Mac | Each lender or investor |
| Underwriting | Agency automated system required | Automated or manual | Lender's own process |
| Mortgage insurance | PMI when equity is low; standard coverage at Freddie Mac | PMI when equity is low; reduced in some programs | Varies by lender |
| Program pairing | No Home Possible or HomeOne | HomeReady, Home Possible, HomeOne | Lender programs only |
| Where available | High-cost counties only | Everywhere | Any county; varies by lender |
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High-balance scenarios: a high-cost county, a refinance, a fourplex
These examples are illustrations only; each file depends on the county limit, the property and the lender.
- A family buying in a high-cost county needs a loan somewhat above the baseline. The loan officer confirms the county limit, then shows them a high-balance loan next to a version with more cash down that would bring the loan to the baseline.
- A homeowner's refinance would land between the two limits. The loan goes through DU, and because the estimated value is above the value acceptance threshold, a full appraisal is ordered.
- An investor buys a fourplex in a high-cost area. The county's four-unit limit applies, along with the agency's investment property rules for reserves and rental income.
- A buyer hoping to use Home Possible finds that the loan would be super conforming, which Freddie Mac doesn't allow with that program, and reviews other options with the loan officer.
Checking the county limit and automated findings first
The process mirrors any conforming loan, with two early checks: the exact limit for the property's county and whether the agency's automated system returns an approval. The address matters because limits are set county by county, so homes on either side of a county line can fall under different limits. Lenders can confirm a figure with FHFA's county list or Fannie Mae's Loan Limit Geocoder.
Limits apply based on when the agency acquires the loan, so a closing near the turn of the year can be affected by the next year's figures, and lenders set their own policies for that transition. Ask your loan officer whether timing matters for your file.
High-balance misconceptions: it is not just a small jumbo loan
High-balance loans sit between the baseline conforming limit and jumbo loans, which causes some confusion.
- Myth: a high-balance loan is just a small jumbo loan. Reality: it remains a conforming loan, so agency rules and protections apply.
- Myth: every county in an expensive state has a higher limit. Reality: limits are set county by county, and many counties in high-cost states stay at the baseline.
- Myth: the purchase price must be under the limit. Reality: only the original loan amount has to fit.
- Myth: high-balance loans can't have mortgage insurance. Reality: they can, and Freddie Mac requires standard coverage.
- Myth: the 2026 ceiling applies everywhere in a high-cost area. Reality: each county has its own figure, often below the ceiling.
Common questions
13 questions
How do I find the high-balance limit for my county?
Limits are set each year by county, and the property's county is what counts, not where you live. Lenders can confirm a figure with FHFA's county list or Fannie Mae's Loan Limit Geocoder, and your loan officer will check the exact address, including which side of a county line it sits on. A county at the baseline has no high-balance range.
How is a high-balance loan different from a jumbo loan?
A high-balance loan is still a conforming loan: it fits within the higher limit FHFA sets for a high-cost county, so Fannie Mae or Freddie Mac can buy it and their guidelines apply. A loan above the county's limit is a jumbo loan, and each lender sets its own rules for those.
Why do only some counties have a high-balance limit?
Federal law sets a baseline conforming limit for most of the country and a higher limit in counties where local median home values are high enough, up to a national ceiling. Alaska, Hawaii, Guam and the U.S. Virgin Islands have their own higher limits. In counties at the baseline, there is no high-balance range.
Which occupancy types can a high-balance loan finance?
Primary residences, second homes and investment properties can all be eligible. Freddie Mac's version, called a super conforming mortgage, can be used for one- to four-unit primary residences, second homes and one- to four-unit investment properties. Requirements differ by occupancy, and your loan officer can confirm what applies to your property.
Can I combine a high-balance loan with HomeReady, Home Possible or an ARM?
Not always. Freddie Mac doesn't allow super conforming loans with Home Possible or HomeOne, on manufactured homes, or for ARMs whose rate can first adjust in less than five years, and Fannie Mae doesn't allow high-balance loans in HomeReady's highest financing tier. High-balance loans must also be run through the agency's automated underwriting system.
When do conforming and high-balance limits change?
Every year. FHFA usually announces the next year's limits in late November, and they apply to loans Fannie Mae and Freddie Mac acquire starting in January. If your county's limit rises, a loan amount that is jumbo this year could fit within next year's high-balance limit.
Is a high-balance loan the same as a super conforming mortgage?
Essentially, yes. Both describe a conforming loan above the baseline limit in a high-cost county: Fannie Mae uses the term high-balance and Freddie Mac uses super conforming. Each agency has its own list of restrictions, so a loan that works under one set of rules may not work under the other. Not every lender sells loans to both agencies, so ask your loan officer which rules the lender would use for your file.
Can a larger down payment keep me below the high-balance range?
Often, yes. The loan amount decides the category, so putting more down can bring the loan to or below the baseline limit, where standard conforming rules and pricing apply. Whether that makes sense depends on how much extra cash it ties up, the reserves you'd have left after closing and any pricing difference at the time. Your loan officer can show both versions side by side.
Do high-balance loans cost more?
They can. Fannie Mae charges specific loan-level price adjustments on all high-balance loans in addition to its usual adjustments, and Freddie Mac applies all of its applicable credit fees to super conforming loans. How that shows up in your rate or closing costs varies by lender and market conditions, so compare Loan Estimates for the loan you actually need. Mortgage insurance, if required, is priced separately.
Can I take cash out with a high-balance refinance?
Yes. High-balance limits apply to cash-out refinances as well as purchases and limited cash-out refinances, but the maximum financing for cash-out is lower and is set in each agency's eligibility matrix. The new loan amount, including the cash you receive, must stay within the county's limit, and the agencies' usual ownership-history rules for cash-out still apply.
Will I need a full appraisal for a high-balance loan?
Often. Fannie Mae doesn't offer value acceptance, its appraisal waiver, when the price or estimated value is $1,000,000 or more, and Freddie Mac doesn't accept super conforming loans valued with an automated valuation model. For smaller high-balance loans, an agency's automated system sometimes offers a waiver, and the lender can still require a full appraisal.
Does the higher limit depend on where I live or where the property is?
Where the property is. The limit follows the property's county, not the borrower's home address. If you live in a baseline county and buy a second home or rental in a high-cost county, that county's higher limit applies, and the reverse is also true. Your loan officer checks the exact address, including which side of a county line it sits on.
Do high-balance loans have stricter credit or reserve requirements?
The agencies apply their standard credit and reserve analysis through automated underwriting, and their eligibility matrices can set different financing limits for high-balance loans. Some lenders add their own requirements for larger balances, such as higher reserves or score minimums, so standards can differ between lenders on the same loan. Your loan officer can explain which requirements apply to your application.
This page explains how this type of loan generally works. Programs, guidelines and availability vary by lender and change often. Contact Ruben to see which options are available for your scenario today.