B5-1-01: High-Balance Mortgage Loan Eligibility and Underwriting (08/07/2018)

Owned by Marsha Freeman
Last updated: Nov 17, 2018 by Kacey Olson
2 min read

© Fannie Mae Single Family Selling Guide

Loan Limits

The high-balance loan requirements apply to mortgage loans with original loan amounts meeting the high-cost area loan limits established by the Federal Housing Finance Agency. Fannie Mae publishes on its website the maximum high-cost area loan limits that may apply by state (or territory); however, specific loan limits are established for each county (or equivalent) and may be lower for each specific high-cost area. Refer to Loan Limits for Conventional Mortgages for additional information, including the loan limits for each area.

Lenders are responsible for ensuring that the original principal balance of each mortgage loan does not exceed the applicable maximum loan limit for the specific area in which the property is located. To assist lenders in determining the applicable limits, Fannie Mae posts reference material on its website, including the Loan Limit Geocoder, which lenders can use to look up loan limits based on a specific address (or batch of addresses).

Loan Eligibility and Underwriting Requirements

High-balance mortgage loans must meet all standard Fannie Mae eligibility and underwriting requirements, as outlined in this Selling Guide, except as noted in this section. The following guidelines apply to all high-balance mortgage loans:

  • Loans must be conventional first-lien mortgages only.
  • Loans must meet the LTV, CLTV, and HCLTV ratios as outlined in the Eligibility Matrix .
  • All borrowers must have a credit score.
  • All loans must be underwritten through DU.

For additional eligibility information, see the Eligibility Matrix. For information about loan delivery, see B5-1-02, High-Balance Pricing, Mortgage Insurance, Special Feature Codes, and Delivery Limitations (12/15/2015).


Note: Unless otherwise notified by Fannie Mae, existing variances in a lender's Master Agreement apply to high-balance mortgage loans; however, the more restrictive of the eligibility requirements of this section or the lender’s variance will apply.


DU Refi Plus, Refi Plus, and High LTV Refinance Loans

High-balance mortgage loans are eligible for DU Refi Plus, Refi Plus, and high LTV refinance options. The eligibility and appraisal requirements specific to DU Refi Plus, Refi Plus, and high LTV refinance loans supersede all requirements that apply to high-balance mortgage loans. See B5-5.2-01, DU Refi Plus and Refi Plus Eligibility (12/19/2017) and B5-7-01, High LTV Refinance Loan and Borrower Eligibility (08/07/2018) for additional information.

Government Mortgage Loans

Lenders may deliver higher balance FHA, VA, and RD mortgage loans to Fannie Mae. For details, see A2-4-01, Master Agreement Overview (10/31/2017), B6-1-01, General Government Mortgage Loan Requirements (09/30/2014), B6-1-02, Eligible FHA-Insured Mortgage Loans (07/29/2014), B6-1-03, Eligible VA-Guaranteed Mortgages (08/20/2013), and B6-1-05, Eligible RD-Guaranteed Mortgages (12/15/2015).