Fannie Mae High Balance Loan 2026: Guidelines, LTV Limits, and Pricing Adjustments

Fannie Mae high balance loans extend conforming loan access to borrowers in high-cost counties whose loan amounts exceed the standard $806,500 limit but fall within the county-specific high-cost ceiling. The product uses standard DU underwriting with some additional constraints on LTV and loan-level price adjustments (LLPAs) that make pricing slightly worse than standard conforming.

LTV Restrictions on High Balance

Fannie Mae applies tighter LTV limits on high balance loans than on standard conforming. For primary residence purchase, LTV is capped at 97% only if both the borrower and co-borrower are first-time homebuyers and the loan uses HomeReady or standard 97 parameters. Otherwise, primary purchase caps at 95% LTV. Investment property high balance is limited to 75% LTV for purchase and 70% for cash-out refinance, compared to 85% on standard conforming purchases. Second homes follow the same LTV as primary for purchase.

LLPA Impact on High Balance Pricing

High balance loans carry a standard LLPA that is applied on top of base conforming LLPAs. Fannie Mae's LLPA table shows a base high balance adjustment that typically runs 0.25% to 0.75% in fee equivalent, depending on LTV and loan term. This is in addition to any FICO and LTV-based LLPAs. On a $900,000 loan, even a 0.25% LLPA translates to $2,250 in pricing impact. Run the full LLPA calculation in your pricing engine before presenting rates.

DU Behavior on High Balance Files

Desktop Underwriter handles high balance files automatically when the loan amount exceeds the standard conforming limit and the property county qualifies. DU will apply the appropriate high balance parameters and issue findings accordingly. If DU returns a Refer instead of Approve/Eligible on a high balance file, the file cannot use standard high balance parameters -- it must go portfolio or jumbo. Manual underwrite is not permitted on high balance loans.

• ✦Confirm county eligibility before entering DU: a loan in a non-high-cost county above the standard limit is a jumbo, not high balance
• ✦High balance is available on 15-, 20-, and 30-year fixed and on ARMs
• ✦Condo high balance requires standard project review -- Fannie's PERS waiver does not extend to high balance condos in all cases
• ✦Non-occupant co-borrowers are permitted on high balance under the same rules as standard conforming