San Antonio Jumbo Home Loans

If you’ve got your sights fixed on a luxurious residential property or a family home in a high-end neighborhood, you’ll likely need a Jumbo home loan to finance the purchase. Jumbo loans are loans intended for properties that go beyond conforming loan limits. These loans suit Americans who want to buy luxury and investment properties. Let’s talk more about Jumbo loans.

What is a Jumbo Mortgage Loan?

Jumbo home loans, also called non-conforming home loans, are home loan that exceeds the county lending limits of the government entitled loans secured by Fannie Mae or Freddie Mac. The lending threshold differs by state and county and is determined by the maximum county limits for Fannie mae.com. Fannie Mae Freddie Mac Jumbo loans are backed by private investors and have different underwriting requirements from traditional Conventional and government home loans. Meaning no guarantee or protection of foreclosure is provided to the investors. Consequently, mortgage underwriting guidelines are not standardized and generally subject to individual investor requirements. These guidelines are typically more restrictive but make it possible for more extensive home purchases to be financed. 

Jumbo Loans vs. Conforming Loans

Conforming loans are loans that meet the guidelines set by the government-sponsored enterprises, Fannie Mae and Freddie Mac. The maximum loan limit for a conforming loan in 2022 is $647,200. However, certain high-cost areas may get as much as $970,800.

 Jumbo loans are your go-to option if the cost of the house you intend to buy goes beyond these limits.

Requirements for a Jumbo Loan

Qualifying for a Jumbo loan in San Antonio is generally more complex than conventional loans. Because they exceed the conforming limits, Jumbo loans are not backed by federal agencies, so lenders are exposed to more risk. This makes Jumbo loans’ eligibility requirements more stringent. 

• Employment and Income

Lenders would like to see stable employment and a diversified source of income. If employed, you must provide proof of income, such as federal tax returns, W-2 statements, and pay stubs. Business owners must submit income tax returns of the business, bank statements, and financial statements.

 Lenders might also require employed applicants to provide employment references (past and current employers) for verification and character reference.

• Credit Score

The minimum credit score for a Jumbo loan is 720, but other lenders can stretch it to 740. In other words, if your credit score is below 700, your chances of getting a Jumbo loan are low. In contrast, conventional loans only require a credit score of at least 620. 

To save time, ascertain your credit situation before applying for a Jumbo loan in San Antonio.

• Assets and Reserves

Jumbo loans will require a down payment of 10 – 20% of the purchase price. You must show the source of the funds to be used in the purchase transaction. Lenders will also require 12 – 24 months in reserve on jumbo loans.

• Debt-to-Income Ratio

The maximum DTI should be 45%, but a lower ratio is highly preferred. Try to stay around 35% to 40% for higher chances of approval.

Get a Jumbo Home Loan in San Antonio Today

Get a Jumbo loan from Capital Home Mortgage today for that luxury home in San Antonio. We are direct mortgage lenders, so we make all the decisions in the loan process from start to finish, allowing us to offer personalized services and quicker proper approvals. 

Call us at (210) 634-1255 to speak to our mortgage loan originators and get one step closer to obtaining your Jumbo home loan in San Antonio.