Secure Jumbo Loans in Texas

Key Takeaways

Jumbo loans in Texas finance properties above the conforming loan limit of $766,550 in most counties and $920,000 in high-cost areas like Austin for 2025.

Texas jumbo borrowers typically need credit scores of 700+ (with best rates at 740+), down payments of 10-20%, and debt-to-income ratios below 43%.

Interest rates for Texas jumbo loans are competitive with conventional rates, sometimes running just 0.25-0.5% higher despite the larger loan amounts.

Jumbo loan options include fixed-rate, adjustable-rate, interest-only, and portfolio programs, each serving different financial strategies for luxury homebuyers.

Prime Texas jumbo markets include upscale neighborhoods in Dallas-Fort Worth, Houston, Austin, and vacation destinations, with property values ranging from $800,000 to several million.

Understanding Texas Jumbo Loans

What Defines a Jumbo Loan in Texas

Jumbo loans in Texas are mortgages that exceed conforming loan limits set by the FHFA. Unlike conventional loans backed by Fannie Mae and Freddie Mac, jumbo loans aren't government-backed, meaning lenders take on more risk and apply stricter qualification standards.

In Texas, any mortgage above the county-specific conforming limit is considered jumbo, regardless of property type or location. These loans are crucial for financing luxury homes, properties in exclusive neighborhoods, and high-end real estate. Without jumbo loans, buyers would need much larger down payments or alternative financing options to purchase higher-priced homes.

Current Texas Jumbo Loan Thresholds

For 2025, the conforming loan limits in Texas are:

These thresholds are set annually by the FHFA based on home price movements. The most recent update reflects the significant home price appreciation across Texas markets in recent years.

It's worth noting that while few areas in Texas qualify for the higher limit, certain high-cost pockets may have different thresholds. Travis County (Austin area) currently has the highest conforming loan limits in Texas due to its substantial home price growth in recent years.

Benefits of Texas Jumbo Mortgages

 Jumbo loans offer key advantages for Texas luxury homebuyers:

• Higher Borrowing Power: Finance high-value homes in exclusive neighborhoods beyond conforming limits.
  
  
• Competitive Rates: Well-qualified borrowers often secure rates just 0.25–0.5% higher than conventional loans (as of March 2025).
  
  
• Single Loan Convenience: One loan, one payment, and one set of terms—simplifying finances and potentially lowering closing costs.
  
  
• Luxury Property Access: Unlock premium homes in top Texas markets.
  
  
• Potential Tax Benefits: Mortgage interest on loans up to $750,000 may be deductible (consult a tax advisor).
  
  
• Flexible Loan Types: Choose from fixed-rate, adjustable-rate, or interest-only options to match your strategy.

When a Jumbo Loan Makes Sense in Texas

Jumbo loans are ideal for:

• Luxury Home Purchases: Buying in upscale areas like Westlake (Austin) or River Oaks (Houston) where home prices exceed conforming limits.
  
  
• High-Income Professionals: Doctors, executives, and others with strong incomes but limited liquid assets.
  
  
• Relocation Buyers: Moving from higher-cost states like California or New York and needing larger financing.
  
  
• Investment Strategy: Financing instead of paying cash to keep capital available and benefit from mortgage interest deductions.
  
  
• Vacation Properties: Buying premium waterfront homes in places like Galveston or Lake Travis.

Texas Jumbo Loan Requirements

Credit Score Requirements for Texas Jumbo Loans

Jumbo loans in Texas typically have stricter credit requirements than conventional loans. While specific requirements vary by lender, you can generally expect:

Minimum Credit Score: Most lenders require a FICO score of at least 700, with the best rates reserved for scores above 740.

Credit History: Lenders review your full credit history, not just your score. They look for:

• Clean payment history with no late payments in the past 12-24 months
• Low credit utilization (ideally below 30% of available credit)
• Diverse credit mix showing responsible management of different credit types
• Limited recent credit inquiries

Foreclosures and Bankruptcies: Most jumbo loan programs require 7 years from a foreclosure and 4-7 years from a bankruptcy, compared to shorter timeframes for conventional loans.

At Truss Financial Group, we work with multiple jumbo loan investors, some of whom offer more flexible credit guidelines for borrowers with compensating factors such as larger down payments or substantial reserves.

Down Payment Expectations in Texas Luxury Markets

Down payment requirements for Texas jumbo loans are typically higher than for conventional mortgages:

Standard Down Payment: Most jumbo loans require 20% down, though some programs accept 10-15% with additional requirements.

Down Payment by Loan Amount:

• $766,550 - $1 million: 10-20% down payment
• $1 million - $1.5 million: 15-25% down payment
• $1.5 million+: 20-30% down payment

Down Payment Sources: Lenders typically require documentation showing the source of your down payment funds. Acceptable sources include:

• Savings or checking accounts
• Investment accounts
• Sale of other assets
• Gift funds (with some restrictions)
• Retirement account withdrawals (with proper documentation)

Private Mortgage Insurance (PMI): Unlike conventional loans, jumbo loans typically don't offer PMI options for down payments below 20%. Instead, lenders may charge a higher interest rate for lower down payments.

Income and Debt-to-Income Guidelines

Income verification is particularly stringent for jumbo loans in Texas:

Debt-to-Income (DTI) Ratio: Most jumbo loans require a maximum DTI of 43%, with some premium programs allowing up to 45-50% for borrowers with exceptional credit and reserves.

Income Verification: Lenders typically require:

• Two years of employment history
• Two years of personal tax returns
• Two years of business tax returns (if self-employed)
• Recent pay stubs covering 30 days
• W-2s from the past two years

Self-Employed Borrowers: Additional documentation is usually required, including:

• Business profit and loss statements
• Balance sheets
• Business bank statements
• CPA letter verifying business stability

Income Stability: Lenders favor borrowers with stable or increasing income. Recent job changes, especially industry changes, may require additional scrutiny.

Reserve Requirements for Texas Jumbo Loans

Jumbo loans typically require larger cash reserves than conventional mortgages:

Minimum Reserves: Most lenders require 6-12 months of reserves (covering principal, interest, taxes, insurance, and association fees).

Reserve Requirements by Loan Amount:

• $766,550 - $1 million: 6-9 months of reserves
• $1 million - $2 million: 9-12 months of reserves
• $2 million+: 12-24 months of reserves

Acceptable Reserve Assets:

• Checking and savings accounts
• Certificates of deposit
• Investment accounts (stocks, bonds, mutual funds)
• Retirement accounts (usually counted at 60-70% of value)
• Cash value of life insurance policies

Unacceptable Reserve Sources:

• Funds needed for closing
• Equity in other real estate
• Unsecured loans
• Gift funds not yet received

At Truss Financial Group, we can help you determine exactly how much you'll need in reserves based on your specific loan amount and circumstances.

Texas Jumbo Loan Options

Fixed-Rate Jumbo Mortgages in Texas

Fixed-rate jumbo loans offer predictable payments for the entire loan term:

Available Terms: Most lenders offer 15, 20, and 30-year fixed terms, with 30-year being the most popular.

Rate Comparison: As of March 2025, 30-year fixed jumbo rates in Texas average 6.25%, compared to 6.0% for conventional loans.

Benefits:

• Payment stability throughout the loan
• Protection against future interest rate increases
• Easier budgeting and financial planning
• Potential for accelerated principal reduction through additional payments

Best For: Homebuyers planning to stay in their home long-term or those who prefer payment predictability over potentially lower initial rates.

Adjustable-Rate Jumbo Financing

Adjustable-rate mortgages (ARMs) offer lower initial rates that adjust periodically:

Common ARM Options:

• 5/6 ARM: Fixed for 5 years, then adjusts every 6 months
• 7/6 ARM: Fixed for 7 years, then adjusts every 6 months
• 10/6 ARM: Fixed for 10 years, then adjusts every 6 months

Rate Caps: Texas jumbo ARMs typically have caps limiting how much rates can increase:

• Initial adjustment cap: 2-5%
• Periodic adjustment cap: 1-2%
• Lifetime cap: 5-6% above the initial rate

Current Rates: As of March 2025, 7/6 jumbo ARMs in Texas average 5.75%, offering initial savings compared to fixed-rate options.

Best For: Homebuyers planning to sell or refinance before the fixed period ends, or those comfortable with potential payment changes in exchange for lower initial rates.

Interest-Only Jumbo Loans in Texas

Interest-only loans allow borrowers to pay only interest for an initial period:

Typical Structure:

• Interest-only period: Usually 5-10 years
• After interest-only period: Loan resets to a fully amortizing payment for the remaining term
• Total term: Often 30 years (e.g., 10 years interest-only, then 20 years fully amortizing)

Qualifying Requirements: Stricter than standard jumbo loans, typically requiring:

• Higher credit scores (720+)
• Lower DTI ratios (below 40%)
• Larger down payments (25-30%)
• Substantial reserves (12+ months)

Payment Example: On a $1 million loan at 6.5%, an interest-only payment would be approximately $5,417/month, while a fully amortizing payment would be $6,329/month.

Best For: Borrowers with variable income (such as those receiving large bonuses or commissions), investors maximizing cash flow, or homeowners expecting significant income increases in the future.

Portfolio Jumbo Loans for Texas Luxury Properties

Portfolio loans are kept on a lender's books rather than sold to investors, allowing for more flexibility:

Key Features:

• Customized underwriting guidelines
• Higher loan limits (some Texas portfolio lenders go up to $10 million+)
• More flexible property types (including non-warrantable condos)
• Alternative income documentation options

Common Portfolio Loan Types:

• Asset depletion loans (qualifying based on assets rather than income)
• Bank statement loans for self-employed borrowers
• Loans for foreign nationals purchasing Texas luxury properties
• Loans for unique or non-standard properties

Best For: High-net-worth individuals, self-employed borrowers with complex finances, or buyers of unique luxury properties that don't fit standard guidelines.

Prime Texas Jumbo Loan Markets

Dallas-Fort Worth Luxury Home Financing
Top Areas: Highland Park, University Park, Westlake, Southlake, Preston Hollow, Frisco, Prosper

• Median price: $1.4M (March 2025)
  
  
• Avg. days on market: 45
  
  
• Price growth: 4.8% (2024–2025)
  
  
• Property types: Estates, custom homes, luxury condos, gated communities
  
  
• Trends: High demand for home offices, outdoor spaces, and smart tech.
  
  

Houston High-End Real Estate Loans
Top Areas: River Oaks, Memorial, The Woodlands, Sugar Land, West University, Bellaire

• Median price: $1.35M (March 2025)
  
  
• Avg. days on market: 60
  
  
• Price growth: 3.9% (2024–2025)
  
  
• Property types: Estates, waterfront homes, luxury high-rises, master-planned communities
  
  
• Trends: Rising international buyers, demand for flood-resistant features.
  
  

Austin Luxury Property Mortgages
Top Areas: Westlake, Rollingwood, Barton Creek, Tarrytown, Lakeway

• Median price: $1.65M (March 2025)
  
  
• Avg. days on market: 35
  
  
• Price growth: 6.2% (2024–2025)
  
  
• Property types: Contemporary estates, waterfront homes, downtown penthouses, hill country ranches
  
  
• Trends: Strong tech-driven demand, especially from California relocations.
  
  

Texas Vacation Property Jumbo Financing
Top Markets: Galveston, South Padre Island, Lake Travis, Lake LBJ, Fredericksburg

• LTV limits: 65–75%
  
  
• Reserve requirements: 3–6 months extra
  
  
• Rates: 0.25–0.5% higher than primary homes
  
  
• Special notes: Extra insurance for coastal/lakefront homes; local building code considerations.

The Texas Jumbo Loan Application Process

Required Documentation for Texas Jumbo Loans

Jumbo loans require more extensive documentation than conventional loans:

Personal Documentation:

• Government-issued photo ID
• Social Security number verification
• Proof of residence (utility bills, voter registration)
• Contact information for employers

Financial Documentation:

• Last two years' personal tax returns with all schedules
• Last two years' W-2s and/or 1099s
• Last two months' pay stubs
• Last two months' bank statements for all accounts
• Retirement and investment account statements
• Documentation for other income sources (rental income, dividends, etc.)

Property Documentation:

• Purchase agreement (for purchases)
• Current mortgage statement (for refinances)
• Homeowner's insurance information
• Property tax statements
• HOA information (if applicable)

Business Documentation (if self-employed):

• Last two years' business tax returns
• Year-to-date profit and loss statement
• Balance sheet
• Business bank statements
• Business license or CPA letter

The Jumbo Loan Underwriting Process

The underwriting process for Texas jumbo loans is typically more rigorous:

Timeline: Jumbo loan underwriting usually takes 21-30 days, compared to 14-21 days for conventional loans.

Key Underwriting Steps:

1. Initial review: Preliminary assessment of documentation and credit profile
2. Detailed financial analysis: In-depth review of income, assets, and liabilities
3. Employment verification: Direct verification with employers, often including verbal verification just before closing
4. Property evaluation: Thorough appraisal review, often including secondary appraisal or review appraisal
5. Final approval: Comprehensive review of all documentation before clear-to-close

Potential Challenges:

• Income complexity for self-employed borrowers or those with multiple income sources
• Recent large deposits requiring sourcing and explanation
• Property valuation issues in unique or high-end homes
• Title complexities with luxury properties

Texas Jumbo Loan Appraisal Requirements

Jumbo loan appraisals in Texas involve more stringent requirements than conventional loan appraisals:

Enhanced Appraisal Requirements:

• Most jumbo loans require a full interior and exterior appraisal (FNMA Form 1004)
• Loans over $1.5 million typically require two separate appraisals from different appraisers
• Detailed market analysis with at least 3-6 comparable properties sold within the last 6 months
• Photos of all rooms, exterior elevations, and street scenes

Specialty Property Considerations:

• Waterfront properties may require additional information about shoreline conditions
• Historic homes often need specialized appraisers familiar with historical values
• Luxury condos require analysis of HOA finances and building amenities
• Rural luxury properties may need additional acreage and outbuilding valuations

Appraisal Review Process:

• Standard appraisals undergo additional review by a second appraiser or review panel
• Automated valuation models (AVMs) may be used to verify the primary appraisal's accuracy
• Underwriters may request additional comparable properties or explanations for value conclusions

Common Appraisal Challenges:

• Limited comparable sales in exclusive neighborhoods
• Unique property features lacking direct comparable
• Recent market volatility affecting valuation trends
• Properties at the upper end of their respective markets

Timeline Expectations: Plan for 5-10 business days for the appraisal process, which is longer than the 3-5 days typical for conventional loans. Properties with unique features or limited comparable may take longer.

Closing on Your Texas Jumbo Mortgage

The closing process for jumbo loans includes several Texas-specific considerations:

Final Verification Steps:

• Verbal verification of employment within 24-48 hours of closing
• Final review of bank statements and credit report
• Last-minute verification of property insurance coverage
• Confirmation of title clearance and survey requirements

Texas-Specific Closing Requirements:

• Texas is a "wet funding" state, meaning funds must be available before documents can be signed
• Texas requires specific disclosure forms for home equity transactions
• Title insurance rates are regulated at the state level
• Texas has specific homestead protections affecting certain loan provisions

Closing Cost Expectations:

For a $1 million jumbo loan in Texas, typical closing costs include:

Closing Location Options:

• Title company office (most common in Texas)
• Lender's office
• Attorney's office
• In-home closing (for an additional fee)
• Remote online notarization (where available)

Post-Closing Matters:

• Recording typically occurs within 1-3 business days
• Loan servicing information provided at closing
• First payment due date is typically at least 30 days after closing
• Final documents delivered to you within 30 days

Apply for a Texas Jumbo Loan Today

Ready to finance your Texas luxury property? Truss Financial Group offers a streamlined process with our specialized jumbo loan team.

Our Advantages:

• Access to multiple jumbo loan investors for best rates
• Specialized underwriting for complex financial profiles
• Local expertise in all Texas luxury markets
• Dedicated loan coordinators for personalized service
• Competitive rates with flexible down payment options

Simple 6-Step Process:

1. Initial Consultation
2. Pre-Qualification
3. Online Application
4. Document Submission
5. Loan Approval
6. Closing

Contact Us Today:

• Call: (888) 990-4505
• Online: Complete our pre-qualification form
• Visit: Offices in Houston, Dallas, Austin, and San Antonio
• Email: hello@trussfinancialgroup.com

Frequently Asked Questions: Texas Jumbo Loans

What's the minimum down payment for a jumbo loan in Texas?

Typical Down Payment Requirements:

• Loans up to $1 million: 10-15%
• Loans $1-1.5 million: 15-20%
• Loans above $1.5 million: 20-30%

Down payment requirements may vary based on credit score, property type, loan program, and overall financial profile. Truss Financial Group offers programs with down payments as low as 10% for well-qualified borrowers.

Can self-employed borrowers qualify for Texas jumbo loans?

Yes, self-employed borrowers can qualify with these requirements:

Key Qualifications:

• 2+ years of self-employment history
• Stable/increasing income
• Strong credit profile
• Sufficient down payment and reserves

Documentation Needed:

• 2-3 years of personal/business tax returns
• Current profit and loss statement
• Business balance sheet
• Business verification documentation

Alternative programs include bank statement loans, asset depletion loans, and 1099 income verification options.

What documentation is required for Texas jumbo loans?

Income: W-2s, pay stubs, tax returns, bonus/commission documentation

Assets: Bank statements, investment accounts, retirement accounts, gift fund documentation

Property: Purchase contract, insurance information, HOA details (if applicable)

Personal: Government ID, employment history, residence history

Our digital application system makes document submission simple, and our loan officers provide guidance throughout the process.