Texas Jumbo Loan
Ready and Rarin’ to Go up to $3 million
Everything’s bigger in Texas. If you want a big, fancy house, or a huge ranch, you might be needing a Texas Jumbo Loan. This is a short guide to what you will need to know before buying that place.
If your mortgage amount is going to be more than $424,100 after you make your down payment, a jumbo loan for your Texas property is likely the right thing to do.
Texas Jumbo Loan Information
Fannie Mae and Freddie Mac guarantee mortgage loans through the federal government. When a loan is more than what they call the ‘conforming limits’, it is called a Texas Jumbo Loan. Mostly, they are just bigger.
Texas. Jumbo. Of course they are bigger.
A Texas jumbo loan is backed by several private investors. The investors receive no guarantee on their money so the guidelines are less standardized. The guidelines for a Texas jumbo loan may be more restrictive than for a low value mortgage on a lower value property. But larger purchases can be financed at very competitive rates. Texas jumbo loan interest rates are at historic lows right now, plus the interest on your loan up to $1 million is tax-deductable.
There are some differences between these jumbo loans and the conforming mortgages:
- You need Texas Jumbo Loan minimums are $424,100.
- You don’t pay private mortgage insurance (PMI) on your Jumbo Loan.
- The down payment is decided by the lender. There is a lot of flexibility in that. More than you can shake a stick at, in fact.
- Your credit score should be decent. Around 680 to 700 or so.
- You’ll need some savings, after you make your down payment. You have to show you could make several payments even without any additional income. Typically you’d need payments for 2 to 12 months, half in a savings account and the rest in your retirement fund. If the rest of your application is especially strong, you might not need to show any cash reserves.
- You need proof of income. Assets, too. Taxes work. Bank accounts. Information from your employer. Whatever you have.
- Your DTI, or debt to income ratio, will need to be 45% or less.
- You can choose from fixed interest rate and adjustable interest rate options.
At Good to Go Mortgage we are ready and rarin’ to go to help you get your Texas Jumbo loan.
Whether you are looking a purchasing property or refinancing, Prequalify Today.