Austin Jumbo Mortgage Loans
Do you have questions about a jumbo mortgage? Please feel free to use this helpful resource as you research your non-conventional or jumbo mortgage needs.
What is a Jumbo Mortgage?
Jumbo loans are a type of mortgage that exceeds the size limits of a conforming loan set by the Federal Housing Finance Agency (FHFA).
What is a conforming loan?
Quite simply, the federal government annually sets guidelines for conforming loans. As a result, investors can be assured of the quality of a conforming loan. This is because, these loans are are eligible for government insurance.
What is a non-conforming loan
Non-conforming loans are typically underwritten to individual bank guidelines. They are also usually serviced and held by the bank that originally underwrote the loan. Since there is no set of standardized qualifications across all lenders, these types of loans are riskier for lenders to issue because they are not insured by the government.
Is there a loan size cut-off?
In Texas, $726,200 is the the conforming loan limit. FHFA determines the limit by state and sometimes metropolitan areas (MSA). Be aware, this is not the house price, but the loan amount.
What are the differences between jumbo and conventional?
Typically, jumbo rates are higher than conventional rates. Additionally, jumbo loans typically require higher credit scores and larger down payments than conforming loans.
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