Super conforming loans: A guide for borrowers

It’s no secret that homes are expensive, but in some markets, the costs can feel sky-high. If you find your dream home in a high-cost market, it can feel difficult to find good mortgage options, given that many loan programs have maximum loan limits.

Super conforming (also known as high balance conforming) loans are a type of loan that’s designed for people who live in expensive housing markets. We’ll break down what these loans are and help you decide if they’re the right financing option for you.

What is a high-balance conforming loan?

Fannie Mae and Freddie Mac are government-sponsored enterprises tasked with helping the mortgage market run smoothly. To do this, they make a list of requirements, including maximum loan amounts, that loans must meet to be conforming. Conforming loans are easy for banks to sell to investors, so many banks prefer to offer conforming loans and provide better rates and terms for them.

Super conforming loans are loans that abide by most of the conforming loan requirements but have balances higher than the typical limit. These loans are only available in specific areas where market demand has caused home prices to be high.

Super conforming loans have similar application processes and borrower requirements as other conventional loans. The primary difference is the maximum loan amount that is permitted.

How do super conforming loans work?

Super conforming loans work quite like other conforming loans, with similar application processes, rates, and requirements. However, borrowers can borrow larger amounts with a super conforming loan.

Super conforming loan limits

Each year the Federal Housing Finance Agency (FHFA) sets the conforming loan limits for the coming year. Loans must fall under this amount to be considered conforming loans. The limit depends on national housing price changes and varies by the number of units in the property.

Counties may be designated as high-cost areas when the median home value is 115% of the loan limit set by the FHFA. The limit for a super conforming loan can be up to 150% of the standard baseline conforming loan limit if the county’s median home price justifies it.

While it’s difficult to make housing market predictions, it’s always good to take the time to be informed about the area where you’re considering buying a home. High-cost areas are subject to the same influences as more modestly priced places.

For 2026, the baseline limit for a one-unit property is $806,500, making the super conforming limit $1,249,125.

Super conforming loan rates

Outside of their higher loan limits, super conforming loans work similarly to conforming loans. That means that borrowers can choose either a fixed-rate loan or an adjustable-rate loan. Fixed-rate loans offer certainty because the rate never changes. Adjustable-rate loans usually have lower initial rates, but the rates and monthly payments can rise over time.

Mortgage rates are determined by both the housing market and the borrower’s finances. Having better credit and a lower debt-to-income ratio (DTI) can help you get a good rate.

Rates are higher today than they have been in recent years, but some believe that rates are likely to fall in the near future. You can check today’s latest rates from Rocket Mortgage^® to see what rates are currently available.

Super conforming mortgage requirements

To qualify for a super conforming mortgage, you need to meet many of the same requirements as you’d have to meet for a typical conventional loan, such as:

• Super conforming loans typically require at least a 5% down payment, though some borrowers may qualify with 3% if eligible under specific programs. You can use this down payment calculator to find out the down payment needed to purchase a home.
• A minimum credit score of 620 (may be higher for some loans).
• A maximum DTI ratio of 43% (up to 50% in some cases).
• The property must meet the property type and unit requirements.
• You must pay for private mortgage insurance if your down payment is less than 20%.
• You must pay closing costs, usually between 2% and 5% of the loan amount.

Jumbo loan vs. super conforming loan

If you’re looking to borrow a large amount of money to buy a home, you may also consider a jumbo loan.

Jumbo loans, like super conforming loans, are for large amounts, usually more than the baseline amount allowed by conforming loans. Jumbo loans are a type of non-conforming loan. They can be offered in areas that are not qualified as high-cost markets. Jumbo loan limits may be higher than the super conforming loan limit.

Because of the high lending limits and lack of backing, jumbo loans often have stricter qualifying requirements and higher rates than super conforming loans, but they may be a good fit for buyers with great finances and credit.

Exact requirements vary from lender to lender, but here’s an example of how jumbo loans and super conforming loans generally compare.

Should you get a high-balance conforming loan?

High-balance conforming loans can be a good fit for borrowers who want to purchase a home in a high-cost market. Depending on where you want to buy a home, your personal financial situation, and the market conditions, you should carefully consider which type of mortgage is best for you.

You can use the FHFA’s Conforming Loan Limit Map to look up your county’s limit, or HUD’s tool if you’re exploring FHA loan and then use a mortgage calculator to see if your mortgage will be affordable after you account for costs like principal and interest, PMI, and taxes.

Before you apply, consider some of these pros and cons.

FAQ about super conforming loans

Before you apply for a super conforming loan, it’s important to understand how they work.

How do you apply for a super conforming loan?

Applying for a super conforming loan is much like applying for any other mortgage. You need to search for a few lender options and compare their options. When you find a lender you like, you’ll submit an application, provide any requested documentation, and wait for approval. If approved, you can then close on the loan.

Can you refinance high-balance conforming loans?

Yes, you can refinance a high-balance conforming loan just like you can refinance other mortgages. It may be a good idea to refinance these loans if you want to reduce your loan’s interest rate or want to take equity out of your property. To refinance, you’ll need to apply for a new mortgage that you’ll use to pay off and replace the old one.

When does a jumbo loan make sense over a super conforming loan?

If you’re considering the benefits of a jumbo loan vs. a conventional loan, it’s good to look at the area where you want to purchase a home. Jumbo loans are available in areas where most homes are not more expensive than the standard conforming loan limit or for homes that exceed the super conforming limit.

If you don’t live in a high-cost area and want to buy a pricey, luxury home, or want to buy a very expensive home in a high-cost area, a jumbo loan may make more sense.

What’s the difference between a super conforming loan and a super jumbo loan?

A super jumbo loan is a special type of jumbo loan with very high loan limits that typically exceed $3 million. The loan amounts far exceed those of typical jumbo loans or super conforming loans.

Loan requirements for super jumbo loans are stricter, and they may be hard to find. Rocket Mortgage® offers a Jumbo Smart loan option with the opportunity to qualify for loan amounts up to $5 million on a 30-year fixed interest rate or up to $2 million on a 15-year fixed or adjustable rate mortgage (ARM).

Are there down payment assistance programs for super conforming loans?

Yes, you may still be able to get down payment assistance when applying for a super conforming loan. Many down payment assistance programs are based on factors such as whether you’re a first-time buyer rather than the amount you’re borrowing, so look for assistance opportunities in your area.

The bottom line: A super conforming loan can open the door for buyers in select markets

If you live in a high-cost housing market, saving up enough money to buy a home can feel like an insurmountable task. Super conforming loans are designed to help buyers purchase properties in some of the country’s most expensive markets. Before you apply for a loan, make sure to consider the pros and cons and ensure that your potential mortgage will be affordable.

Once you’re ready to apply, Rocket Mortgage^® will be here to help. You can start your application today.