Jumbo Loans

Many of the more popular government-backed loan programs and certain conventional loan options are limited to certain amounts. Borrowers looking to purchase more expensive luxury homes, second homes, or investment properties will need to look for alternatives. One valuable loan option for these types of properties is the Jumbo loan. At Troy Mannella – LNM Lending Team of Security National Mortgage Company, we offer great rates and flexible terms on jumbo loans throughout Austin, Round Rock, Hutto, and Leander.

Freddie Mae and Fannie Mac purchase most of the conventional loans offered today. Before either of these entities will purchase a mortgage, it must meet certain requirements. Loans that meet these requirements are considered conforming loans while those that do not are called nonconforming loans. To be classified as conforming, a loan cannot exceed $424,100, although in some high-cost areas, loans $636,150 may still qualify. A Jumbo loan is simply a conventional loan that exceed these limits.

Since they cannot be sold to Fannie Mae or Freddie Mac, Jumbo loans may be a bit more difficult for borrowers to qualify for. On the other hand, lenders can also be flexible with borrowers since jumbo loans do not need to adhere to the same Fannie Mae and Freddie Mac guidelines that conforming loans do. While each can set their own unique requirements, most mortgage companies will follow common industry standards when qualifying borrowers.

Texas Jumbo Loan Requirements

Credit Score – A credit score around 700 is generally needed. Flexibility may be afforded in this area depending on factors such as income and down payment availability.

Down Payment – A 20% down payment is often required for a jumbo loan. For those with better than average income and credit, smaller down payment options may be available.

Debt-to-Income Ratio and Income – A debt-to-income ratio of 43 percent is generally required although this may vary on a case by case basis. W2 forms, recent paystubs, and other similar documentation will be needed at the time of application to verify income.

Property – The property being purchased will need to support the purchase price and the mortgage being applied for.

Be prepared to provide documentation that outlines liquid assets, non-liquid assets, and any additional loans you may have when applying for a Jumbo loan. This information is used to further support your ability to repay the loan amount you are requesting.

For Texas borrowers interested in purchasing an investment property, a higher-priced home, or even a second home, Jumbo loans can be a great option. Contact Troy Mannella – LNM Lending Team of Security National Mortgage Company today for more information on jumbo loans options in Austin, Round Rock, Hutto, and Leander, or to apply for your jumbo loan today.