Texas Jumbo Home Loans

One of the most important aspects of shopping for a new home is determining the type of mortgage that best meets your needs. In some cases, you may require a  jumbo loan to purchase the home of your dreams in some of the more expensive areas in Texas.

Capital Home Mortgage is a full-range mortgage company offering a wide range of Texas home loans, including jumbo loans. Contact us for more information about our mortgage products.

What Is A Jumbo Loan?

Jumbo loans are a type of mortgage used to finance the purchase of properties that exceed the conforming loan limit. Jumbo loan limits are significantly higher than conventional loan borrowing limits in all states.

For 2022, the conforming loan limit in Texas is $647,200 for all counties. Any home loan that is more than that amount is considered a jumbo loan.

How To Qualify For A Jumbo Loan In Texas

Lenders consider Jumbo loans high-risk because Fannie Mae or Freddie Mac does not guarantee them. Lenders lose money if a borrower defaults on a jumbo loan. As a result, the mortgage qualification criteria for jumbo loans are much more stringent than other types of loans. 

To qualify for a jumbo loan, you must have a stable income, adequate reserves, and a manageable level of debt.

Take the following steps before applying for a jumbo to increase your chances of getting approved:

     1. Improve Your Credit Score

Jumbo loans require a higher credit score than conventional loans. Lenders will run a credit report check, so work on your credit and ensure your score is at least 720 at the time of your application. Moreover, an excellent credit score may help you negotiate better mortgage terms.

     2. Clear Your Debts

Your lender will consider your debt-to-income ratio when applying for a jumbo loan. Since jumbo loans are significantly larger than conventional ones, having too much debt can hurt your chances of approval. Most lenders prefer borrowers with debt-to-income ratios of less than 43 percent.

     3. Save, Save, Save

Of course, you’ll need enough cash to cover your down payment. Lenders usually ask for a 10 – 20 percent down payment and may require you to have at least one year’s worth of reserves. Having enough cash on hand demonstrates to lenders that you are unlikely to default on your mortgage.

      4. Prepare Your Documents 

When you take out a mortgage, you will be required to provide a substantial amount of documentation. Tax records, bank statements, investment account information, and pay slips are just a few of the documents you will need to gather.

Prepare all these documents so you’re ready to hand them in as soon as they’re required. Lenders are more likely to work with borrowers who are well-prepared.

Apply For A Texas Jumbo Loan Now!

Jumbo mortgages are very attractive because they enable borrowers to acquire high-end properties that they would not be able to afford with a traditional mortgage.

If you’re considering buying a high-priced property in Texas, contact the experts at Capital Home Mortgage. Our jumbo loan specialists can discuss the process and help you decide whether a jumbo loan is your best option.

We are always ready to assist you in achieving your home ownership goals, no matter how lofty they may be. Call us at 800-960-4546 today!