Home Possible® High-Balance Refinance
Best For: Limited Equity, Large Loan Amounts, Easy Qualification
Low equity refinancing above the conforming loan limits from Freddie Mac with discounted fees for low and moderate income borrowers across the US.
Program Description
As of 2023, there are 161 US Counties considered "high cost" that have varying loan amount limits greater than the normal $726,200 for conventional purchase loans. Offering low equity requirements, flexible closing cost options, and reduced mortgage insurance coverage levels, Home Possible® is a great way to for well-qualified homeowners to refinance with a loan amount above the standard conforming limit.
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Home Possible® High-Balance Refinance
Min. Credit Score
620
Min. Equity
3%
Max Loan Amount
$726,525 - $1,089,300
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Cancellable mortgage insurance when the loan balance drops below 80%
- Pricing better than or equal to standard loan pricing
- Lower down payment requirements for multi-family properties than HomeReady®
- Non-occupant co-borrowers allowed
- Income limits disqualify many potential borrowers from qualifying
- Interest rates can be higher than standard Home Possible® refinance
Program Availability
Home Possible® High-Balance Refinances are available in 18 states, Washington D.C. and the U.S. Virgin Islands.
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An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.
“I'll let you in on a little secret... Home Possible® is a great program, but watch out for the income limits in your area! (can't be more than 80% of the AMI) Many potential borrowers may not qualify for this program due to this limitation."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
No Limits
Income Limit
$47,120 - $118,960
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
Refinancing?
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Key Features
- Only for primary residences, no second homes or investment properties
- Lower mortgage insurance costs compared to FHA and Conventional
- As little as 3% retained equity for refinance transactions
Additional Conditions
- Borrowers' combined income must be less than 80% of the area median income (AMI) where the property is located
- Must be an owner-occupied primary residence
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is not required for this loan program.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
CHOICERenovation® High-Balance Refinance
Best For: Large Loan Amounts, Home Renovations
Refinance above the conforming loan limits with funds for home improvements and repairs with this convenient and flexible renovation loan program.
Home Possible® High-Balance Purchase Loan
Best For: First Time Homebuyers, Large Loan Amounts
Low down payment financing above the conforming loan limit with discounted fees for creditworthy low and moderate income borrowers across the US.
Related Resources
2023 Cash-Out Refinance Guide
Owning a home is a big investment and like with many long-term assets, it comes with a few added responsibilities. To keep your home appreciating in value and to make sure you continue to enjoy it, it's important to keep it maintained and updated.
Read More
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
Read More
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
Read More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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