Jumbo Loans
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Jumbo Loans
Jumbo loans finance properties above applicable conforming loan limits — making them a common choice for higher-value homes in competitive markets like Austin.
Who May Benefit
- Buyers purchasing higher-value homes above conforming loan limits
- Borrowers with strong credit, documented income, and significant assets
- Those purchasing in competitive markets like Austin where home values are elevated
- Buyers who need financing that exceeds conventional program limits
- Borrowers with substantial cash reserves
How It Generally Works
Conforming loan limits are set annually by the Federal Housing Finance Agency (FHFA) and vary by location. A jumbo loan is any mortgage that exceeds the applicable limit for the area. Because jumbo loans cannot be sold to Fannie Mae or Freddie Mac, lenders set their own guidelines.
Jumbo borrowers typically need strong credit, documented income, significant assets, and cash reserves. Documentation requirements are often more thorough than for conforming loans.
Key Considerations
Conforming Loan Limits
Jumbo loans exceed the conforming loan limits set annually by the FHFA. Limits vary by location. Your lender can confirm the current limit for the area where you are purchasing.
Documentation Requirements
Jumbo loans typically require thorough income, asset, and employment documentation. Lenders set their own guidelines, which are often more stringent than conforming loan standards.
Credit and Reserves
Strong credit and significant cash reserves are typically required. Reserve requirements can be substantial — often several months of mortgage payments held in liquid accounts after closing.
Property Appraisal
Jumbo loans often require more rigorous appraisal review, sometimes including multiple appraisals. The property must support the loan amount.
Conforming loan limits change annually. Jumbo loan requirements, rates, and availability vary by lender and are subject to change. Contact us for current program details.
Frequently Asked Questions
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