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High-balance loan: what it means

A high-balance loan is Fannie Mae's name for a conventional loan in a high-cost area that is subject to the higher loan limit for those areas, rather than the baseline limit that applies to most of its loans. The areas are set by its regulator, the Federal Housing Finance Agency (FHFA), and the limit changes by county.

In Spanish it is

Préstamo de saldo alto (high-balance)

Also written as: high-balance mortgage loan · high-balance conforming loan

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Verified on October 17, 2026

2 official sources

See the whole dictionary

The full explanation

The loan must be a first mortgage, meet Fannie Mae's standard rules and a few more, such as going through its automated underwriting system. Fannie Mae cannot buy loans above your area's limit.

An example

Raquel is buying in an expensive county. Her loan is above the baseline limit but fits under her county's higher limit, so the lender offers her a high-balance conventional loan.

With real numbers

Computed with official data for the whole U.S. In your county the numbers may differ.

Baseline limit, 1 unit: $832,750
Highest limit, 1 unit: $1,299,500

In 3,066 of the 3,222 counties, the conforming limit for a one-unit home is $832,750. In high-cost areas it reaches $1,299,500. A loan larger than your county’s limit is no longer conforming and usually costs more.

Computed with: Conforming loan limits (FHFA) (2026)

You will see it in…

Conventional loan offers in high-cost counties
FHFA's conforming loan limit table
Comparisons between conventional and jumbo loans

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

1. Fannie Mae · Selling Guide B5-1-01: High-Balance Mortgage Loan Eligibility and Underwriting (external site) · in English · Verified on October 17, 2026
2. Fannie Mae · Selling Guide B2-1.5-01: Loan Limits (external site) · in English · Verified on October 17, 2026