Who Qualifies for a Jumbo Loan in Texas?
To qualify for a jumbo loan, borrowers must typically meet higher income and credit requirements compared to standard mortgages. Qualifications include:
- – Credit scores of 680 and above
- – Low debt-to-income (DTI) ratios under 50
- – Verifiable employment for 2 years or retirement income lasting 3 years
- – Documemted mortgage reserves sufficient to take care of 6-12 months of mortgage payments
Jumbo loans are popular among high-net-worth individuals and real estate investors and those seeking large luxury and custom-built homes in Texas' affluent neighborhoods.
Minimum Down Payments
Down payment requirements for Texas jumbo loans do vary and begin at ten-percent up to $3 million for those high credit scores. If you don't fit in that category, a then 15-20% or higher down payment is necessary based on the loan size, credit history and debt to income ratios. Larger down payments or paying a discount point fees to get lower interest rates are required when your DTI is over 50.