Nationwide High Balance Loans

Nationwide high balance loans are a great option for homebuyers looking to finance a higher priced home. They can also be used for current homeowners wanting to refinance. This loan is a jumbo loan. Many receive a great 30-year fixed rate without having to meet strict underwriting requirements normally used on large mortgages. This week, Stonebriar Mortgage teaches Dallas, TX and California homeowners about the benefits of using Nationwide High Balance Loans.

Requirements for Nationwide High Balance Loans

Nationwide High Balance Loans are a type of jumbo loan. This loan exceeds conforming loan limits set by Government-Sponsored Entities (GSEs). Many counties in California and Dallas Texas have high value homes on the market that may require non-conforming loans. The Federal Housing Finance Agency (FHFA) sets conforming loan limits annually. Approval for refinancing using a Nationwide High Balance loan, therefore, is also impacted by the annual limit. If looking to refinance using this product, note that the loan must have met conforming limits at the time it was sold to Fannie Mae. Properties can be one- to four-units, condos, co-ops, or manufactured housing.

How to Qualify for a Nationwide High Balance Loan

If you are looking to gain approval for a Nationwide High Balance Loan, it is best to meet the below criteria:

  • A credit score of at least 620 or more. The lower credit scores may lessen the amount of funds approved.
  • A maximum 80% loan-to-value amount.
  • A debt-to-income ratio of less than 43%.
  • Use of the loan for a primary or second home.
  • Provide ample income documentation, but less documentation than for a jumbo loan.
  • Provide the down payment required by the lender, though many do not usually ask for 20% like with a jumbo loan.

Pros and Cons of Using Nationwide High Balance Loans

With Nationwide High Balance Loan approvals, some lenders prefer to avoid using manual underwriting. Some interest rates tend to be higher than for conventional loans. This is because you are asking for more money, so the loan carries more risk for a lender. There are lower limits on this loan than with a jumbo loan. If you need more than a nationwide high balance loan can offer, you may have to re-apply for a jumbo mortgage. A higher loan amount or lower credit score may increase your interest rates. However, if you have great credit, they may allot you a higher debt-to-income ratio than 43%. You also do not need traditional income documents required by other programs.

Stonebriar Mortgage will help you accomplish your homeownership goals in Dallas, TX or California. We work with customers of all types and enjoy helping investors. Contact our team today and discuss the many benefits of using a Nationwide High Balance Loan.

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