Jumbo Loans

If the home you have your eye on costs more than what a standard mortgage will cover, a jumbo loan might be exactly what you need. A jumbo loan is a mortgage that goes beyond the conforming loan limits set each year by the Federal Housing Finance Agency (FHFA). Those limits change by county, so what counts as “jumbo” in one area might be perfectly ordinary in another, but in the state of Texas the conforming limit is $832,750. If your loan amount is above the conforming limit for your location, this is the financing route you’re looking at.

Because jumbo loans don’t follow Fannie Mae and Freddie Mac guidelines, they’re classified as non-conforming loans. That means the qualification process looks a little different — but it also means you can finance a high-value home with one loan instead of stacking multiple smaller mortgages together.

When Might You Need a Jumbo Loan?

A jumbo loan is probably in your future if:

• The home you’re buying is priced above your area’s conforming loan limit.
• You’re eyeing a luxury property, second home, or investment property in a high-cost market.
• You’d rather have one clean mortgage than split the financing into two separate loans.

What Makes Jumbo Loans Different

Jumbo loans are built for well-qualified borrowers who need higher loan amounts. A few things to know:

• Loan amounts sit above conforming limits — common for high-value markets.
• You can use them for primary residences, second homes, and investment properties.
• Both fixed and adjustable-rate options are available, depending on the lender.
• Terms are flexible, typically running 15 to 30 years.

Since lenders take on more risk with these loans, the approval guidelines tend to be a bit stricter than what you’d see with a conforming mortgage.

What It Takes to Qualify

Qualifying for a jumbo loan generally asks more of you than a standard conforming loan does. Here’s what lenders will usually want to see:

• A strong credit score — often 700 or higher, depending on the lender.
• A lower debt-to-income ratio, to show you can comfortably handle repayment.
• Solid assets or reserves, whether that’s savings, investments, or both.
• Full income documentation and employment verification.
• An appraisal confirming the home supports the loan amount.

Every lender sets its own bar for jumbo loan approval, so requirements can shift depending on who you work with.

Why Borrowers Choose a Jumbo Loan

For the right buyer, a jumbo loan comes with real advantages:

• More purchasing power for luxury or high-cost properties.
• One loan instead of juggling multiple mortgages on the same property.
• More flexibility to structure terms and repayment around your goals.

A Few Things to Keep in Mind

Because jumbo loans are non-conforming, there’s a bit more to navigate:

• Qualification standards are stricter than a standard loan.
• Interest rates can run a little higher, though a strong credit profile can still land you a competitive rate.
• Expect more documentation during underwriting.

If you’re considering a jumbo loan, it’s worth sitting down with an experienced mortgage professional who can walk you through the specifics and help you land on the right loan for your goals.