Tag Lending Group Blog: Expert Mortgage Solutions & Insights

Conventional High Balance Loans: More Buying Power Without Going Jumbo

Written by Angela Bañez | Jan 23, 2026 3:48:29 PM

Buying a home in a high-cost area often means higher price tags—and higher financing needs. A Conventional High Balance loan is designed for borrowers who need loan amounts above standard conforming limits while still staying within conventional loan guidelines.

This program allows homebuyers to access increased loan limits in designated high-cost counties without moving into jumbo loan territory, offering flexibility, competitive pricing, and a smoother approval process.

What Is a Conventional High Balance Loan?

A Conventional High Balance loan is a conforming mortgage that exceeds the national baseline loan limit but remains within the maximum limits set for high-cost counties. These limits vary by location and can go as high as $1,249,125, depending on the county.

Because the loan remains conforming, borrowers benefit from many of the same advantages as standard conventional financing.

Key Program Features

  • Loan limits up to $1,249,125 per county
  • FICO determined by AUS
  • Up to 97% loan-to-value (LTV)
  • Cash-out refinancing allowed
  • Eligible for primary residences, second homes, and investment properties

Why Choose a Conventional High Balance Loan?

  • Temporary rate buydowns are available, helping reduce initial monthly payments
  • No additional overlays beyond FNMA and Freddie Mac guidelines
  • Faster turn times compared to many jumbo loan programs

These features make Conventional High-Balance loans an excellent option for borrowers seeking higher loan amounts with fewer restrictions.

Who Is This Loan Best For?

  • Buyers purchasing in high-cost or competitive markets
  • Borrowers who want conventional loan benefits with higher limits
  • Homeowners looking to refinance or cash out without switching to jumbo financing
  • Investors and second-home buyers seeking flexible options
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