Houston Jumbo Home Loans

Sometimes the house of your dreams comes at a high price. Perhaps it is located in an upscale neighborhood where home prices are in the millions. Unfortunately, Conventional loans don’t cover homes beyond the maximum loan limits set by Fannie Mae and Fannie Mac. As such, you’ll need a different type of home loan.

If you’re planning to buy luxury houses and properties, the most appropriate mortgage program would be a Jumbo loan. 

Capital Home Mortgage offers Jumbo loans in Houston. Here’s what you need to know. 

Qualifying For A Jumbo Loan 

Jumbo loans can cover homes that are beyond loan limits. They can be more than a million dollars depending on the property. Hence, Jumbo loans have stricter requirements than conventional loans. 

• Credit Score

Lenders often impose a minimum credit score of 700 to qualify for a Jumbo loan. It can go higher to 720 at the lender’s discretion. If you currently have a lot of debt, we recommend paying them off before applying for a Jumbo loan. Reducing your current obligations can also improve your credit score and credit history.

• Assets & Reserves

Mortgage lenders also focus on your assets and reserves regarding Jumbo loans. They want to determine if you have enough assets to afford the loan. Lenders also want to know if you’re liquid enough to pay future mortgage payments. Hence, having enough cash in the bank, including investment accounts, can give plus points to your application.

The minimum down payment for conventional loans is 20% to skip private mortgage insurance. But for Jumbo loans, it can be as high as 30%, depending on the lender.

• Employment and Proof of Income

Lenders might ask for proof of income like federal tax returns, W-2 statements, bank statements, and pay stubs. Business owners will be asked to provide financial statements for at least two years as proof of stable business income and a current profit and loss statement. 

Aside from proof of income, underwriters may contact current or previous employers to verify your employment and ask for character reference.

• Debt-to-income Ratio

A high monthly income won’t necessarily offset high monthly debt payments. Your debt-to-income ratio can affect your Jumbo loan application if it’s too high. Ideally, the maximum DTI is 45%, but a lower figure is preferred.

Jumbo Loan vs. Conforming Loan

Conforming loans have maximum loan limits per state and county. For 2022, Texas’ conforming loan limit is $647,200 for all counties. You should get a Jumbo loan if a house is above the limit. Fannie Mae and Freddie Mac revise loan limits annually.

Apply For A Jumbo Loan With Capital Home Mortgage

Qualifying for a Jumbo loan in Houston can be more challenging because of stringent requirements. Our loan specialists at Capital Home Mortgage are here to assist in your Jumbo loan application. Our direct mortgage lending services handle all applications from pre-approval to funding. We can also give you competitive interest rates plus low processing fees. 

Give us a call now at (281) 674-7372 to get started with your Houston Jumbo loan process.