Jumbo Loans

One-line summary: Mortgage loans above the conforming loan limit set by Fannie Mae and Freddie Mac, used for higher-priced homes, with tighter qualifying than conventional but competitive rates for strong borrowers.

Best for

Buyers and refinancers needing loan balances above the Texas conforming limit. Jumbo financing triggers explicitly once the loan amount exceeds the statewide conforming limit of $832,750.

Key terms (typical)

Attribute	Typical Range
Eligible properties	1–4 unit primary, second home, or investment
Down payment	10–20% typical; some programs go to 5% with strong credit
Credit score	700+ typical; 740+ for best pricing
Loan amounts	Above the conforming limit, up to $3M+ depending on program
Reserves	6–12 months of PITI in liquid reserves typical
Term	30 years fixed; 15 year; ARM options available
Debt-to-income	Typically capped at 43%; some programs to 45%

Why borrowers choose this program

• Loan amounts beyond conforming limits. Jumbo is how higher-priced homes get financed once conventional loan limits run out.
• Competitive rates. Despite the name, jumbo rates are often comparable to or even better than conforming rates for strong borrowers, large banks compete aggressively for high-balance loans from creditworthy borrowers.
• Interest-only options. Some jumbo programs offer interest-only payment options for a portion of the loan term, useful for cash flow management.
• Property flexibility. Like conventional, jumbo can finance primary, second home, and investment properties, at higher loan amounts.

Considerations

• Tighter qualifying. Jumbo underwriting is more conservative than conventional: higher credit score minimums, larger reserves, tighter DTI caps, full documentation.
• Larger down payment typical. Most jumbo programs require 10–20% down. Lower down payment jumbo exists but typically for very strong borrowers.
• More documentation. Expect tax returns, bank statements, asset documentation, and possibly business returns, more paperwork than a conforming loan.