Texas Jumbo Home Loans in 2022
A jumbo mortgage loan is a home loan which is more than the conforming loan limits established by the government sponsored enterprises (GSE) Fannie Mae and Freddie Mac. In Texas, that limit is set at $647,200 for all counties and cities.
In other states, there's usually a few counties with higher limits due to neighborhoods with multi-million dollar luxury homes. Texas definitely has many counties that deserve higher limits yet that is not the case so there are more home loans being funded by jumbo mortgage lenders.
Jumbo mortgages provide an excellent benefit because they help borrowers buy luxury homes that they couldn't obtain with a conforming loan capped at $647,200. One example is a $1 million dollar lakefront home that you want to buy. In order to get a conforming loan you'd have to make a down payment of $352,800. But with a Jumbo loan, you may qualify with a down payment of just $100,000 or a 10 percent down.
So if you're considering purchasing a home in an affluent neighborhood like Memorial Villages or West Lake Hills, you will very likely need jumbo mortgage. One of the licensed jumbo mortgage originators here will advise and assist you with qualifying for loan amounts from $647,201 up to $10,000,000. Apply online here or give us a call, and we will help you the best we can for your jumbo mortgage request.
What You Need to Know about Jumbo Mortgages in Texas
Jumbo loans: the conforming loan limit for most counties in Texas is $647,200. Amounts above that are jumbo loans and amounts over one million dollars are considered a super jumbo.
Down payment: the majority of lenders will require a 20% down payment, but some lenders will allow a jumbo loan with 10% or as low as 5% down, especially when it's for a primary home purchase.
Mortgage insurance: many lenders frequently ask the borrowers to pay monthly mortgage insurance when it's less than 10 percent down. But the jumbo programs offered by lenders and loan originators here do not have any mortgage insurance (MI). There's not any MI or PMI.
Qualification: In general, the requirements to qualify for a jumbo mortgage are not very strict unless your down payment is less than 15 percent. Typically, the minimum credit score is 660, yet 700 scores or above are necessary for low down payments, refinance, and cash out refinancing. Some jumbo lenders allow debt-to-income ratios (DTI) up to 50 depending on your credit score and liquid reserves.
Loan Types: your options are based on the lender's pool of programs. For the most part, the choices are either adjustable-rate loans (most have a fixed period of 5, 7 or 10 years) and fixed-rate loan terms of 15, 20 and 30-years. There is one loan product where you can pick your fixed term years of 30, 29, 28 and lower if your DTI, credit score and loan to value qualifies.
Do you think you qualify for a jumbo mortgage? Apply online below or give us a call and we will help you get the best texas jumbo loan product.