We had a buyer make a $600,000 offer in Sutter Creek, CA (in the Sierra Foothills). Her max down payment was 10% or $60,000. The problem: The MAX HIGH BALANCE LOAN is only $443,750 in Amador County (Sutter Creek).
So our borrower’s ONLY option is/was Portfolio Financing, but ALL of our portfolio lenders wanted at least 20% down b/c the property was “unique” (116 acres). Our borrower did not have sufficient funds, so her deal effectively died.
In any case, in coastal areas and “expensive areas”, it is safe to assume the High Balance Loan Limit is $729,750, but as you head east from the coast, check your loan limits before making offers.