In Texas, all home purchase or refinance loans over $484,350 are Jumbo loans. Essentially, a Jumbo loan is a conventional loan that is too large to be purchased by Fannie Mae and Freddie Mac. Therefore, a Jumbo loan is known as a “non-conforming loan" whose lending criteria is determined solely through investor demand in the private market, while a “conforming loan” is any loan bought and sold by Fannie Mae and Freddie Mac. Although a Jumbo loan in Houston Metro area can extend beyond 25 Million dollars, however most Jumbo loans are between $485,350 and 3 Million Dollars.
Factors such as down payment, interest rate, and reserves vary depending on your credit score and the jumbo program offered by each lender.
Variable down payment, could start at a minimum of 5% down.
Minimum credit score starts as low 680.
Required reserves could be from six to fifteen months.
Could require two appraisals.
Below are the Jumbo minimum loan limits for 2019 for Harris County.
In limited cases Jumbo loan down payment could start as low as 5% , however, down payment requirements can increase as the jumbo loan amount exceeds one and a half million dollars.
In general, on most Jumbo Loan Programs, credit score starts at 680; however, as the loan amount increases, usually, the lender wants to see credit score above 720+. In other cases, if the Loan to Value decreases to 50% some programs allow a FICO score below 680.
Many Jumbo Loan Programs require the borrower to have at least 6 months of reserves for loans up to $1,000,000. However, if the loan amount is higher, lender may require 6, 9, 12, or up to 15 months reserves.
If you use our realty affiliate Texas Property Realty on a closing transaction of a home, then your final home loan interest rate in combination with all expenses, will be lower on the same loan product than any competitor by at least 1/8 percent APR, or we Texas Property Lending, Inc. will pay $1,000 towards your closing costs when you close Texas Property Realty.*This Guarantee applies only to Products and Programs that Texas Property Lending offers, and only includes Jumbo, and Conventional, and, any claim for reimbursement must be made in writing no later than 30 days prior to closing. In all cases Texas Property Lending must have the opportunity and right to beat the rate and expense of any competitor. This guarantee does not apply if your family member, extended family member, fiancé or significant other is doing your loan, as our competitor.
Try our affiliate:
Our loan services at Texas Property Lending, Inc. are available to anyone purchasing a home. However, you can streamline your home purchase by combing the services of Texas Property Lending, Inc. with our affiliate Texas Property Realty as your real estate broker. Combining these services will help us (Texas Property Lending, Inc.) get you in your dream home quickly and could also decrease your overall costs. If you’d like to learn more about this bundling of services from Texas Property Lending, Inc, and how this could save you money, call now at 713-955-LOAN (5262).
We endorse the spirit of giving espoused by Bill and Melinda Gates, Warren Buffet, and others, in helping to reduce global inequality and human suffering. Each time you close a transaction with either affiliated business, Texas Property Lending Inc or Texas Property Realty, we donate 10% of earned Commissions to Charity. With each of your particular transactions, ask us for details!
-Bill and Melinda Gates
Texas Property Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.