Odessa Jumbo Home Loans

Identifying the type of mortgage that best meets your needs is one of the most crucial aspects of house hunting. Sometimes, you may need a jumbo loan to purchase the home of your dreams in Odessa or one of Texas’s costlier regions.

Capital Home Mortgage is a full-service mortgage lender that provides a variety of Odessa, Texas home loans, including jumbo loans. Contact us for details regarding our mortgage products.

What are Jumbo Loans?

The Federal Housing Finance Agency determines conforming limits annually, outlining the maximum loan amount government-sponsored enterprises (Fannie Mae and Freddie Mac) are willing to purchase on the secondary market. When the loan amount exceeds Fannie Mae and Freddie Mac’s limit, the loan is referred to as a jumbo mortgage. Any mortgage that exceeds these limits is a jumbo loan, also known as a non-conforming loan. 

These limits may vary by region and are subject to annual adjustments based on the national median home price. The conforming loan limit for all Texas counties in 2022 is $647,200. However, note that this is not a limit on the home purchase price but the loan amount.

Will I Qualify for a Jumbo Loan?

The qualification process for a jumbo loan is typically more stringent than that for a conforming loan. It would help if you had a consistent income, sizable savings, and a low debt load to get approved for a jumbo loan. Credit score and debt-to-income ratio requirements may also vary slightly between lenders. 

As with any home loan, lenders look closely at your income and assets to ensure you can afford the monthly mortgage payments. Also, ensure you can handle the additional costs, such as taxes, maintenance, and upkeep. There is also the matter of insurance. Since jumbo loans are often used to buy more expensive homes, ensure you have enough insurance in case of a significant disaster or total loss.

What are the Benefits of a Jumbo Loan?

A jumbo loan also has jumbo advantages for qualified borrowers, which include:

• Access to more considerable funds for purchasing higher-priced homes or even luxury properties.
• You can pick the best plan for your financial situation at both fixed and variable rates.
• Funds can be used for purchasing a second home or investment property.
• Non-occupying co-borrowers are allowed. A family member or friend doesn’t have to live in the same house as you to co-sign the loan.
• All or part of the interest you pay is tax deductible. Consult a tax specialist for specifics.

Is a Jumbo Loan For Me?

If you want to finance more than $647,200 and have a high credit score, low debt-to-income (DTI) ratio, and a substantial down payment, a jumbo loan may be a good option. 

Contrary to popular belief, jumbo loans are not always reserved for high-end properties. If you plan on buying a home in a high-cost area, where properties priced below the conforming loan limits are scarce, a jumbo loan may be your best option.

Are You Ready to Take the First Step toward Your Dream Home?

One of the main selling points of jumbo mortgages is that they make it possible for borrowers to finance the purchase of properties that would otherwise be out of reach.

If you are considering a high-priced property in Odessa, contact Capital Home Mortgage now at (432) 218-4828! Our home loan experts can talk to you about the process and help you decide if a jumbo loan is the best choice for you.

No matter how big your home ownership dreams are, we are always ready to help you reach them. Call us today!