We all have heard of a Jumbo Mortgage, haven’t we? It is a type of home financing for those individuals whose amount exceeds the conforming loan limits. Unlike regular mortgages, they are not eligible for purchase, securitized or guaranteed.
They are apt for financing luxury homes or properties which are competitive in the real estate markets. They feature unique requirements for tax implications and underwriting.
Jumbo Texas Mortgage is being highly sought after. This is because Jumbo Mortgages are quickly gaining momentum. Let’s look at facets and factors that you need to identify in the best Jumbo Mortgage provider in Texas. Before that, let’s look at the eligibility criteria for Jumbo Mortgage.
Eligibility for Jumbo MortgageJumbo Mortgage is bracketed into a category of high-income earners who earn between $250000 and $500000 per year. Also referred to as ‘HENRY’, which stands for ‘High Earners Not Rich Yet’; they are allotted to an individual who makes a good living but who do not have the large sums towards assets accumulated yet.
Individuals availing a Jumbo Mortgage usually possess a good credit score and are established in credit histories more than an average home buyer. These individuals also possess well-established retirement accounts. A credit score of 660 and above is considered ideal. The lower the credit score the lower the percentage of down payment. Ideally, a debt-to-income ratio of 43% is considered for an individual.
Identifying Jumbo Mortgage Providers in TexasIf you are looking for the best Jumbo Mortgage providers in Texas, then select somebody who will allow you
5% down Jumbo Mortgage. As per Texas laws, the maximum conforming mortgage limit for a loan is $453100. This is for a single family home. The laws are liable to every county in Texas.
With a 5% down, you save so much.
Regular lenders in Texas ask for a down payment of 20%. You must avoid this and go for a genuine and hassle-free lender with 5% down payment. Work with a suitable lender who will under your financial situation and help you prevent burning a hole in your pocket. A 5% down payment is awesome because come to think of it, the Jumbo Mortgage threshold goes up to $636150 in major high-cost areas.
Jumbo Mortgage is plus sized loan for homes which weigh at the dollar amount above the conforming loan limit. A Jumbo Mortgage will come with demanding requirements so choose a lender who will do all the paperwork for you and ensure you do not feel any hassles. Usually, the percentage of Jumbo Mortgage down payment ranges from 15% - 30%. Finding a lender who offers a percentage of down payment as low as 5% is not just rare but awesome.