What Defines a Jumbo Loan in Texas?
- A single loan exceeding $625,000 is considered a jumbo mortgage in Texas.
- However, jumbo financing can be avoided by structuring loans strategically. For instance:
- A single loan of $825,000 qualifies as a jumbo mortgage.
- Alternatively, financing can be split into a first mortgage of $625,000 and a second mortgage of $200,000, effectively staying within the conforming limit for the primary loan.
Why Are Jumbo Loans Considered Riskier?
- Secondary Market Challenges: Unlike conforming loans, jumbo loans lack liquidity in the secondary market since they are not purchased by Fannie Mae or Freddie Mac.
- Supply and Demand Impact: The absence of GSE backing means fewer investors in the secondary market, driving up rates due to lower demand for jumbo loan securities.
Conforming Loan Limit in Texas: $625,000
The Government-Sponsored Enterprises (GSEs), better known as Fannie Mae and Freddie Mac, set the Conforming Loan Limit for Texas at $625,000. This limit varies by state and is determined by the median home value within the Metropolitan Statistical Area (MSA). In Texas, any loan amount exceeding this threshold is classified as a jumbo mortgage and must be securitized by institutions outside of Fannie Mae or Freddie Mac.
Innovative Solutions for Jumbo Borrowers
We understand the unique challenges of securing jumbo financing, and we offer portfolio loan programs designed to provide greater flexibility:
- Lower Down Payment Options: As low as 10% in some cases.
- Reduced Credit Score Requirements: Programs available for borrowers with scores as low as 660.
- Competitive Rates: Comparable to conforming loans, minimizing the rate gap.
Next Steps
Navigating the world of jumbo and conforming loans requires expertise, and we’re here to help. Whether you have questions about structuring your financing or need guidance on qualification requirements, contact us to explore solutions tailored to your needs.
Jumbo Loans with Just 10% Down? You Bet!
When it comes to mortgage solutions, the Team Pfeiffer difference is clear. We’re not just lenders; we’re innovators, bringing you groundbreaking opportunities like jumbo loans requiring only a 10% down payment.
Gone are the days when jumbo loan clients had to scrape together a 20% down payment to secure financing. Thanks to our portfolio lending program, we’ve shattered this barrier, allowing qualified buyers to step into homes with as little as 10% down. Whether you’re purchasing a home or refinancing above the conforming loan limit of $625,000, we’ve got you covered.
Here’s What Sets Us Apart:
- Loan Limits: Finance up to $1,000,000 on a first lien.
- Property Flexibility: Primary residences or second homes.
- Streamlined Process: Only one appraisal is required.
- Credit Requirements: Minimum FICO of 700.
- No PMI: That’s right—no Private Mortgage Insurance!
- Diverse Loan Options: Choose from 10/1 ARMs (fixed for the first 10 years), as well as 3, 5, and 7-year ARM terms.
Our team understands the trust you place in your lender. That’s why we’re committed to innovation and excellence, ensuring we meet your clients’ needs and, most importantly, close on time—every time.
Why Choose Team Pfeiffer?
We go beyond the transaction. Our mission is to partner with you, the hardworking professionals, by delivering customized solutions and unparalleled service. Let us help your clients achieve their dreams with less hassle, less stress, and more savings.
Mark Pfeiffer
Branch Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com