Brownsville Jumbo Home Loans

Some homes are a little (or a lot) more expensive than others. A jumbo loan can get the financing you need if your eyes are set on a property well above the Brownsville loan limits.  

With a Capital Home Mortgage Jumbo Loan, your dream home is within reach! But—before you apply, we suggest you read our comprehensive guide to Brownsville jumbo loans to see if it is the right choice for you.

What are Jumbo Loans?

You’ve probably heard of the term “jumbo loan” before and, like many others, wondered what it means. No, the “jumbo” does not refer to the size of the house but its price. 

A jumbo loan is designed for financing expensive, higher-end properties that cost way beyond the loan limits of a conventional loan. They are not limited by specific mortgage standards, exceeding conforming loan limits by up to 150%, which makes them ideal for anyone who wants to purchase a high-value home or sizable residential property.

The Federal Housing Finance Agency (FHFA) sets the conforming loan limit each year, with most of the U.S. limited to $647,200 for a conventional home loan in 2022. Anything higher than that amount is jumbo mortgage territory.

Borrowers with good credit and sufficient household income can get a jumbo loan of up to $970,800.

Jumbo Loans vs. Conforming Loans

A jumbo loan and a conventional mortgage both serve the same function: to provide financing for a home. However, they vary significantly in terms of requirements and loan amounts.

Jumbo loans do not adhere to Fannie Mae’s and Freddie Mac’s guidelines, two government-sponsored enterprises that buy mortgages from lenders. They exceed the loan limit and, as a result, are not qualified for purchase by either entity.

Also, jumbo loans typically have higher credit scores and down payment requirements than conventional mortgages. And, because fewer mortgage companies are willing to loan such large sums, borrowers have limited options and may find it challenging to find a lender to work with.  

Qualifying for a Jumbo Loan in Brownsville

Many mortgage lenders offer jumbo loans at surprisingly competitive rates to attract borrowers, but this doesn’t mean it’s easy to get one. It’s quite the opposite.

Jumbo mortgages are difficult to procure. A higher loan value inherently poses more risk for the lender, so they must be stricter on who they lend. Plus, the bigger the loan, the longer it takes borrowers to pay them off. 

Still, getting approved for a jumbo loan is possible as long as you meet the requirements and prove that you’re financially capable of covering the payments.

Lenders have stricter qualifications for jumbo loans. They typically look for near-perfect credit scores (ideally above 700) and lower debt-to-income ratios (anywhere between 43% to 36%.) The borrower must also earn sufficient income to cover their monthly expenses, mortgage, and other debts.

If you are self-employed or have varying sources of income, your lender may require more documentation for income verification. Additionally, your lender will want to know how much cash you have on hand and may request proof of reserve funds, such as savings or jewelry, to ensure you have enough money to cover future mortgage payments. Your reserve funds can go a long way in proving your capability to repay your loan on time.

Of course, with a higher loan amount comes a higher down payment. Many lenders accept as little as a 3% down payment for conforming loans but ask for a 15% to 20% down payment for jumbo loans. At Capital Home Mortgage, however, we have a variety of jumbo loan programs, some offering lower down payment options based on your qualifying circumstances.

Interested in a Brownsville Jumbo Loan?

The ideal borrower will have a low debt-to-income ratio, excellent credit, and the ability to make a substantial down payment. If you meet these criteria and want to purchase a high-value home in Brownsville, a jumbo loan could be your best shot at getting the property you wish.

Capital Home Mortgage has access to a range of jumbo loan programs to meet the needs of Brownsville borrowers. We’ll get you the financing you need at payments you can afford!