Conventional loan amounts up to and including $417,000 are considered Conforming loans, or Agency loans, and are typically backed by Fannie Mae and Freddie Mac.

In San Diego County, conventional loan amounts greater than $417,000 and less than or equal to $697,500 are considered High Balance Conforming loans (also known as Conforming Plus, Conforming Jumbo, and Agency Jumbo).

Some areas, like Los Angeles and Orange County, have high balance conforming limits as high as $729,750.

These loans are still backed by Fannie Mae/Freddie Mac.  However, the High Balance guidelines differ slightly from the true conforming guidelines.  One of the most important differences is the minimum down payment requirement.

The following is a quick breakdown of the minimum down payment requirements for High Balance Conforming loans:

Owner Occupied Purchase

• SFR and Detached PUD’s, the minimum down payment is 10%
• Condo and Attached PUD’s, the minimum down payment is 20%
• 2-4 units, minimum down payment is 25%

Second Home Purchase

• The minimum down payment for all property types is 35% for a 2nd home purchase
  
• 2-4 units are not allowed

Investment Property Purchase

• The minimum down payment for all property types is 35% for an investment property purchase
• SFR, Attached and Detached PUD’s, Condo’s, and 2-4 units allowed