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Homebuyers with excellent credit scores—especially around 780—have access to some of the best mortgage terms in the market. But when your loan amount exceeds conforming limits, the choice becomes more nuanced: should you go with a High-Balance Conventional Loan or a Portfolio Jumbo Loan?
This guide dives deep into the pros and cons of each option, helping you decide which loan product best suits your needs.
What Is a High-Balance Conventional Loan?
A High-Balance Conventional Loan is a conforming loan that exceeds the standard conforming loan limits set by the Federal Housing Finance Agency (FHFA), but is still eligible for purchase by Fannie Mae and Freddie Mac in high-cost areas.
2025 Conforming High-Balance Limits (varies by location):
- Up to $1,149,825 in select high-cost counties.
Key Benefits for 780 FICO Borrowers:
- Lower interest rates compared to jumbo loans.
- Easier to qualify with less stringent underwriting.
- Potentially lower down payment (as low as 5%).
Learn more about conforming loan limits and eligibility →
What Is a Portfolio Jumbo Loan?
A Portfolio Jumbo Loan is a non-conforming mortgage that exceeds FHFA loan limits and is held (“portfolioed”) by the lender rather than sold to Fannie Mae or Freddie Mac.
Why It’s Attractive for High-Net-Worth Borrowers:
- Custom loan solutions with flexible guidelines.
- Larger loan amounts available—often over $2M.
- May allow asset-based underwriting and alternative documentation.
Explore how jumbo loans work →
Head-to-Head Comparison: 780 FICO Borrower
| Feature | High-Balance Conventional | Portfolio Jumbo |
| Minimum Credit Score | 700+ | 720+ (often 740 or higher) |
| Loan Amount Range | $766,551 – $1,149,825 | Over $1,149,825 |
| Interest Rate | Lower (due to conforming status) | Slightly higher (risk-based pricing) |
| Down Payment Requirement | As low as 5% | Typically 10–20% |
| Debt-to-Income Ratio | Max 45% | Flexible, but often stricter |
| Mortgage Insurance | Required if <20% down | Usually not required |
| Underwriting Process | Automated, standardized | Manual, case-by-case |
Which One Should You Choose with a 780 FICO?
Choose High-Balance Conventional if:
- Your loan amount fits within high-cost limits.
- You want a faster and more predictable underwriting process.
- You’re aiming for the lowest possible rate.
Choose Portfolio Jumbo if:
- You need a loan amount above high-balance limits.
- You have complex income or significant assets.
- You want a tailored lending solution.
Pro Tip: With a 780 FICO, you’re in a premium tier with lenders—be sure to negotiate rate concessions on either loan type.
Real-World Example
Scenario: A borrower in Los Angeles County with a 780 FICO wants a $1.2M home with 20% down.
- High-Balance Limit in LA (2025): $1,149,825
- Loan Amount Needed: $960,000
Since the loan is under the high-balance limit, a High-Balance Conventional Loan is available—and likely the better choice due to better pricing.
If the purchase price were $1.6M with the same down payment, a Portfolio Jumbo Loan would be necessary, and should be shopped aggressively across lenders.
FAQs
Does a 780 FICO score guarantee the best mortgage rate?
Yes, most lenders offer top-tier pricing starting at 760, so a 780 FICO qualifies you for the best available rates.
Can I avoid mortgage insurance with a high-balance loan?
Yes—if you put down at least 20%, PMI is waived. Otherwise, it may apply.
Are jumbo loans harder to qualify for?
Typically yes. Expect stricter income verification, lower DTI ratios, and larger reserves.
Read Next
- Top Mortgage Programs for High-Income Buyers →
- How to Get the Best Jumbo Loan Rate with a 780+ FICO →
- 5 Things to Know About Mortgage Insurance in High-Cost Areas →
Still not sure which loan is right for you? Contact us now → to schedule a free consultation with a mortgage expert.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
