San Francisco and two neighboring Bay Area cities (Vallejo and San Jose) recently ranked as the top three hottest markets in the United States for the month of August.

California, in fact, is home to 10 of the top 20 most prosperous markets, according to an analysis by realtor.com. Home prices remained at historic highs, while homes came off the market at a faster pace than last year. The lack of inventory is labeled as a contributing factor to quick sales and increasing prices.

Shrinking inventory has also led to a drop in overall sales in the Bay Area, while prices continue to climb, according to The Mercury News. Year-to-year, prices are up by more than 10 percent, putting the usual cost of a single-family home at $804,000.

As a consequence, current homeowners may feel uneasy about selling their home and moving to another Bay Area neighborhood, where bungalows of 1,000-square-foot are going for over seven figures, according to The Mercury News. Low inventory compounds the concern shared by some families that landing another Bay Area home is an uphill battle.

Guarantee Mortgage has a solution.

People wishing to buy in the Bay Area can maximize their dollar and get into their dream home with one of our signature High Balance and Jumbo Loan Solutions programs.

These two loans help expand our clients’ options, particularly when the balance exceeds the conforming loan and conforming high-balance loan limits, or when they have less than 20 percent for a down payment.

The conforming loan limit for a single-family home is generally $424,100, but can be as high as $636,150 in certain high-cost areas.

The program allows for a loan to be split between a first and second mortgage, known as an 80-10-10 loan. The first loan covers 80 percent of the purchase price while the second loan and the down payment take care of the remaining 20 percent. Our clients can then save money on the mortgage insurance and avoid a larger down payment through our innovative mortgage financing.

For families looking to exceed the conforming home limit, the High Balance Solution program fits the bill by splitting the loan amount. This process can result in a lower monthly bill due to lower rates provided by conforming mortgage products.

The Jumbo Solutions program is the “sister” to the High Balance Solutions and works much in the same way in that it can be used to finance a home when the loan amount exceeds the conforming high balance.

The following list provides guidance to determine if you will benefit from either our High Balance or Jumbo Solutions programs:

  • You want a loan that exceeds conforming or conforming high balance.
  • You want to pay less than 20 percent for the down payment of the home.
  • You want to avoid mortgage insurance.
  • You want flexibility of splitting house payments with a first and second mortgage to reduce monthly payments and rates.

If any of these apply to you, it may be time to take a closer look at our programs.

We understand that purchasing a home in the Bay Area may seem more challenging with each passing month. That is why we are proud to offer the solutions that will assist you in meeting your financial goals. Please contact us for more information on these exciting programs.