Understanding Jumbo Loans in Texas

Share this:

jumbo loans in texas

Are you eyeing that dream home in Texas that surpasses the conventional loan limits? Then you might be in the market for a Texas Jumbo Loan. But what exactly is a Jumbo Loan, and how does it work? Let’s delve into the details.

What is a Jumbo Loan?

In essence, a Texas Jumbo Loan exceeds the maximum loan amounts set by Fannie Mae and Freddie Mac for conventional loans. Typically, Jumbo Loans come with higher interest rates compared to standard conforming loans. They are primarily sought after for purchasing more luxurious homes and high-end custom constructions. However, securing a Jumbo Loan also necessitates a higher down payment compared to traditional loan options. As of January 31, 2023, any loan amount exceeding the conforming loan limit is classified as a Jumbo Mortgage.

Jumbo Loan Limits

The landscape of Jumbo Loans is continually evolving, particularly in Texas where the housing market is booming. As of January 31, 2023, the Federal Housing Finance Agency (FHFA) has established new Jumbo loan limits across the state. Here’s a breakdown of the updated figures:

  • Across all counties in Texas, the Jumbo Loan limit stands at a robust $726,200, a significant increase from previous years.

Types of Jumbo Loans in Texas

At Rock Mortgage, we understand that each borrower has unique needs. That’s why we offer a variety of Jumbo Loan options tailored to suit different financial situations:

  1. Purchase Jumbo Loan: Our Jumbo Purchase Loans come with competitive rates and are easier to qualify for compared to big banks. Whether you’re eyeing a sprawling estate or a custom-built mansion, we have the solution for you.
  2. Refinance Jumbo Loan: Whether you’re looking to convert from an adjustable-rate mortgage to a fixed-rate loan or seeking to tap into your home’s equity, our Jumbo Refinance options provide flexibility and savings.
  3. Home Equity Jumbo Refinances: Unlock the potential of your home’s equity with our Jumbo Refinance options. Use the extra funds for home improvements, debt consolidation, or investing in other ventures.

Jumbo Loan Requirements

Securing a Jumbo Loan in Texas comes with its set of requirements:

  • Credit Score: Typically, a minimum credit score of 680 is required, though borrowers with scores in the upper 700s to low-mid 800s are more common.
  • Financial Documentation: Lenders may request bank statements to ensure borrowers can meet payment obligations, along with cash reserves to cover closing costs.

Jumbo Loan Interest Rates

Interest rates on Jumbo Loans tend to be higher compared to conforming loans. However, borrowers can choose from various options, including fixed-rate loans, adjustable-rate mortgages, and interest-only loans. Our Home Loan Specialists can guide you through the options to find the best fit for your financial goals.

Jumbo Loan Loan-to-Value Ratio

While a minimum 10% down payment is often required, some borrowers may need to put down 20% or more depending on their specific circumstances. Our team will work with you to determine the optimal down payment based on factors such as credit score, debt-to-income ratio, and property type.

Ready to take the leap into Jumbo Loans? Contact our Home Loan Specialists at (877) 280-4833 to explore your options and turn your homeownership dreams into reality. Apply online today!

Disclaimer: All loans are subject to underwriting or investor approval, and other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines and products are subject to change. Contact Rock Mortgage in Houston to learn more about Jumbo Loans.

Jamie Ayala

Jamie Ayala

Jamie Ayala has been working as a Loan Processor at Rock Mortgage for more than 4 years. As a knowledgeable account executive he has had many years of customer service experience in the loan, information technology, and political industries. Recognized for demonstrating a natural aptitude for working with cross-functional teams, as well as for meeting deadlines and validating loan documents, Jamie has a verifyable history of consistently exceeded sales and performance goals. His professional focal points include loan processing, client negotiations, team collaboration, and project management.