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A Texas Jumbo Loan is a loan that exceeds the maximum loan amounts of a conventional loan, according to Fannie Mae and Freddie Mac loan limits. Rates on Jumbo Loans are typically higher than conventional conforming loans. Jumbo Mortgage Loans generally are used to buy more expensive homes and high-end custom-construction homes. These larger loans also require a higher down payment than traditional loans. Effective January 31, 2023, the conforming loan limits increase. Anything above the conforming loan limit is classified as Jumbo Mortgage.
The new jumbo loan limits in Texas, effective January 31, 2023, are as follows according to the Federal Housing Finance Agency (FHFA):
As the Texas housing market explodes, the loan limits will need to follow. Jumbo Loan Limits have increased year after year and as of 2023, this is the most impressive stable number. A solid $726,200 across all counties in Texas. Look at the difference from 2022 below.
Previous Year numbers (2022)
TheTexasMortgagePros.com offers Jumbo Loans with attractive rates at a low cost to the borrower. Our Jumbo Purchase Loans in Texas are very competitive and easier to qualify for compared to big banks. While other lenders are falling short on Jumbo Loans, we open our door to lending Jumbo Loans
Here are the Jumbo Loan Requirements in Texas:
Here are the Jumbo Loan Qualification Requirements in Texas: Credit score requirement is typically higher; a minimum of 680 middle credit score is required. The typical Jumbo Mortgage borrower has a middle FICO score of 740 and above. It’s not uncommon for credit unions and lenders to see a jumbo borrower’s credit score in the upper 700s to low-mid 800’s when originating a Jumbo Loan.
A Jumbo Loan may also require jumbo borrowers to provide bank statements to lenders to prove that they have the capacity to follow the payment schedule. Lenders may also require cash reserves to pay for the closing costs. Closing costs are around 3% -6% of the total property value.
Jumbo Loan Interest rates are usually higher compared to Conforming Loans. Jumbo Loan mortgage rates are usually available in a variety of forms, such as fixed-rate loan and adjustable-rate mortgage (ARM) loan options. There are also interest-only loans (HELOC or HELOAN) or temporary buy-downs. With interest-only option loans (HELOC or HELOAN), a borrower cannot build equity through monthly interest-only payments. In order to build equity, a borrower has to make voluntary principal payments during the interest-only period when making payments. The line of credit (HELOC or HELOAN) has a variable interest rate (ARM) which may increase or decrease the monthly payment as interest rates fluctuate. The borrower can convert a portion of, or all of, the outstanding lines of credit to a fixed rate amortized in a 5 – 20-year loan term.
The Jumbo Loan loan-to-value ratio in Texas is as follows. At a minimum, a Jumbo Loan borrower is required to come up with a 10% down payment; but more often, 20% is required to qualify for a Jumbo Purchase Loan. This is usually looked at on an individual basis since a borrower’s situation for Jumbo Loans varies from one borrower to the next. Some borrowers will be required to come up with a 25% – 30% down payment depending on their situation, credit score, DTI, and type of property being purchased. For details about Jumbo Loans, jumbo financing, and other non-conforming loans, contact our Home Loan Specialists at (877) 280-4833.
All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines and products subject to change.
