Did you know there is a loan product in between conforming and jumbo? The High Balance Conforming is a good option if your loan amount is not substantially higher than the conforming limits. The interest rates are only about 0.125% higher than a conforming loan.
This loan product can be used for principal residence, second home, and investment property. The maximum loan to value on a purchase for principal residence is 90%, on a second home 65%, and on an investment property 65%. Good credit is important for these loans. In Hawaii, the loan limits by county are as follows:
- Kauai: $713,000
- Hawaii (Big Island): $625,500
- Honolulu: $721,050
- Maui: $626,750
- Kalawao: $626,750
It’s always good to compare the high balance and jumbo loan products. Depending on your specific situation, jumbo can be the better option. However, considering the High Balance first would be a good idea.