Amarillo Jumbo Home Loans

If you want to own high-end, luxury properties in Amarillo, a conventional mortgage loan will not cut it. Instead, you’ll need to obtain a Jumbo home loan. This loan is so named because the amount you can borrow is higher than the conforming loan limits in the area. 

Capital Home Mortgage offers Jumbo loans in Amarillo. We invite you to contact our Amarillo mortgage loan officers to know if you need this unique mortgage product. 

Qualifying for a Jumbo Loan

Jumbo loans are stricter than conventional loans because Fannie Mae and Freddie Mac don’t guarantee these loans. Lenders offering jumbo loans tighten up the requirements because of the risk involved in giving jumbo loans. Because if the borrower defaults, the lender will shoulder the loss.

• Minimum Credit Score

The minimum score of a jumbo loan applicant must be at least 700 to qualify for a jumbo loan. We don’t guarantee approval if you have that score. If your credit score is low, it can mean a lot of things. Get a copy of your credit report before applying to know if there are issues with your credit score.

• Down Payment

The standard down payment in conforming loans is 20% if you want to skip mortgage insurance. But with jumbo loans, the down payment varies depending on the applicant’s financial condition. It can be 20% or go as low as 10%. The amount of down payment varies depending on the borrower’s credit history and the lender’s assessment.

• Credit History

Lenders would want to see how you honor past debts. They’ll review your credit history and check for late payments, including penalties and surcharges. However, even if you pay on time, you’re still not out of the woods because more factors are involved in assessing creditworthiness, such as reviewing the credit utilization rate.

• Asset & Reserves

Since jumbo loans are risky for lenders, asset reserves can reduce lending risk if you show that you’re liquid enough. We might require you to provide bank statements and other documents showing ownership of these assets.

Jumbo Loans vs. Conforming Loans

The conforming loan limits in Amarillo are from $420,680 to $809,150. For example, the limit of a four-plex is $809,150. If the price of the house you want is beyond that limit, you need to apply for a jumbo loan. A conforming loan is a mortgage within limits set by the Federal Housing Finance Agency or FHFA. 

Limits change per year, so next year’s limitations might increase if the trend goes upward. You might want to delay purchasing a house this year if next year’s limit exceeds the price of the home you want to buy. That way, you can apply for a conforming loan rather than a jumbo loan.

Apply for a Jumbo Loan in Amarillo Today

At Capital Home Mortgage, we aim to deliver a one-of-a-kind home-buying experience. Contact our Amarillo loan officers at (806) 589-3428 to start your Jumbo loan application.