Dallas Jumbo Home Loans

Some properties come with super high price tags that exceed the conforming limits for Conventional and government-backed mortgages. You’ll need Jumbo loans to finance these properties. These mortgages exceed the conforming loan limits set by Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency.

If you’ve been eyeing a high-end property in Dallas, our team at Capital Home Mortgage is here to help you obtain a Jumbo home loan. We understand that buying a high-priced home comes with challenges, so we offer various flexible financing options to meet your needs. 

Jumbo Loans vs. Conforming Loans

The main difference between Jumbo and conforming loans is the amount of money you’re borrowing. Jumbo loans are for high-priced homes that cost more than the maximum amount allowed for conforming loans.

Conforming loans are the best choice for most people as they adhere to FHFA limits, making them easier to obtain. Meanwhile, Jumbo loans don’t meet these guidelines and exceed the loan limits set by government-sponsored enterprises. 

As a result, they’re considered riskier for both lenders and borrowers since they can’t be sold to government-sponsored enterprises in the event of default. 

Qualifying for a Jumbo Loan

Jumbo loans are not for the faint of heart. With higher amounts and requirements beyond what most people need, these types of financing come with risks you might not want to take on your house payment. Additionally, since they are more expensive than conventional and are not government-backed, they have stricter requirements.

If you want to take out a Jumbo Loan, your credit score must be at least 720. Some lenders will only provide loans for those with higher scores. We recommend checking your credit score and history before applying for a Jumbo home loan in Dallas. This way, you’ll know immediately if you qualify or not. 

In addition to having an excellent stellar credit score, your payment history will be scrutinized more carefully. Any late payments, bankruptcies, or foreclosures will make it harder to qualify for a Jumbo loan. 

Ideally, your debt-to-income ratio (DTI) must be below 45%, and you should be able to afford a down payment of 10 to 30% of the sales price.

Furthermore, you’ll need to provide documents that verify your income and employment. These documents include but are not limited to bank statements, financial statements, pay stubs, tax returns, and W-2 statements. We may also ask for other kinds of proof as needed during the application process, so it’s best to keep them on hand!

Get a Jumbo Home Loan in Dallas Today

At Capital Home Mortgage, we understand that buying a home is a considerable investment. We also know that some homebuyers dream of an exclusive property, which is why we work with homebuyers to help them get suitable Jumbo home loans for their needs.

Our team prides itself on ensuring our clients have an enjoyable mortgage and home-buying experience. Get in touch today by calling (214) 372-0015. We look forward to providing your next Dallas Jumbo loan.