A High Balance (Ellie Mae)/ Super Conforming Mortgage (Freddie Mac) is a mortgage that has higher maximum loan limits than a usual conventional conforming loan. The idea of the loan is to provide lower mortgage financing costs to borrowers who are located in the country’s highest cost areas. The high balance loan limit, however, cannot exceed that of the high-cost area in which the property is located (usually $625,500 for a 1-unit home in the continental U.S.) as it is specified by the Federal Housing Finance Agency (FHFA).
A High Balance/Super Conforming Mortgage can be used on fixed-rate and adjustable-rate mortgages and can finance 1- to 4-unit primary residences, secondary homes, and investment properties. In comparison to which Jumbo Mortgages completely disregard conforming loan limits and can range up to $2 million, High Balance/Super Conforming Mortgages cannot exceed the loan limits applied to the high-cost area the property resides in.