What Is a Super Conforming Loan?

In some areas of the country home prices tend to be much higher due to the cost of living and other variables such as location, demand and desirability of the area. Conventional loan limits currently are at $726,000. Above that amount there are jumbo loans as well to consider but they usually come with stricter guidelines and a higher down payment amount. There is another alternative to consider in these high-priced areas and that is a super conforming loan.

Super conforming loans, just like conforming loans, are a conventional mortgage and provided by the GSEs (government sponsored enterprises) of Fannie Mae or Freddie Mac. Super conforming loans or more commonly called high cost or high balance mortgages are specifically offered for areas where market demand has pushed up home prices.

So, where the conforming loan limit is $726,200 in these higher priced areas the limit for super conforming loans can be as high as $1,089,300. This is significant because rates on these loans are lower than what you can typically receive on a jumbo loan.

If you want to check out what the loan limits are in your area, click on this link.

https://entp.hud.gov/idapp/html/hicostlook.cfm

The most important next step for you is to find a trusted mortgage professional to learn more about what may be the right loan for you. You can call the expert Home Loan Advisors at Hall Financial and they will provide great advice and answer all your questions.