The Houston area real estate market has changed rapidly in recent years. Whether searching for mansions in The Woodlands, waterfront estates along Buffalo Bayou or luxury condominiums in Sugar Land, dream homes in Houston often fall outside customary loan limits.
That's where jumbo loans come in.
Flagstone Mortgage specializes in jumbo mortgages for Houston's most discerning homebuyers. Flagstone Mortgage has closed over 4,000 loans totaling $1.2 billion. We have 85 years of combined mortgage experience on the Flagstone team. If you're thinking about a jumbo loan, here's what you need to know and why your lender matters.
What Is a Jumbo Loan?
A jumbo mortgage is a mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). The conforming loan limit is $806,500 for most counties, as of 2025, but it is higher in other designated high-cost counties.
In other words, anything you need to borrow over that amount is a jumbo loan, and we see more of that in the Houston metro area, as median home prices rise in desirable neighborhoods.
The main difference between jumbo and conventional loans is how lenders underwrite your mortgage application. It is not how much you can afford. Jumbo loans can be more difficult to qualify for, but this isn't always a bad thing. At Flagstone, we take more than a checklist approach. We take a common sense approach to our underwriting process, which allows us to assist borrowers that would be rejected by other larger, less nimble financial institutions.
The Houston Market: Why Jumbo Loans Are Growing
Houston's real estate market has changed, but in the luxury segment, inventory is tight and competition is high. Home values in some of these neighborhoods have skyrocketed well beyond the conforming loan ceiling.
We see it in action as more and more of our customers buy homes in the $1M-$3M+ space, not only as an owner-occupied primary residence, but also as a second home in a resort community or an investment property. For these customers, a jumbo loan is not an exotic financial instrument but actually a necessity.
The biggest change has been the jumbo loan market itself, which a few years ago had higher rates and less favorable terms. The market nowadays is considerably different, but Flagstone's experience and nimbleness allow us to offer competitive rates on jumbo products and more rapid closing than the large national lenders most people assume are their only option in this market.
In fact, many clients are shocked to learn they can get a better rate from a local mortgage broker with 85 years of combined experience rather than a national call center.
Who Should Consider a Jumbo Loan?
You're a good candidate for a jumbo loan if you meet these requirements:
You're buying an expensive home. If you're looking at homes larger than your local conforming loan limit, a jumbo loan might be your best option.
You want to keep some liquidity. A jumbo loan allows you to buy expensive properties without having to spend all your savings on a large down payment. A lot of our clients prefer to spread out their money rather than put it all down with a down payment.
You're refinancing an existing jumbo mortgage. If you already have a jumbo mortgage and mortgage rates have fallen or your creditworthiness has improved, you may be able to refinance your jumbo mortgage at a lower rate.
You're self-employed or high-net-worth. Jumbo loans may be a better fit for self-employed borrowers, investors and executives, especially business owners or high-net-worth individuals whose income is not solely reflected on their W-2 forms, because lenders consider the whole financial picture.
You want flexible terms. Jumbo lenders have greater flexibility to customize products to meet your needs and situation. Fixed or variable rate, various amortization periods. Multiple types of properties. This flexibility is impossible with cookie-cutter conventional loans.
The Real Advantages of a Jumbo Loan
Here are a few benefits of a well-structured jumbo loan, besides the ability to borrow more:
Access premium properties without overspending. Buy the home you actually want without compromising on location or features. With the right loan structure, payments can be less than you might expect.
Investment property financing. Jumbo loans aren't just for primary residences. Several of our clients have used them for investment properties, second homes, and other additions to their portfolios. Conventional loans are not an option.
Better rates than you might think. Jumbo doesn't always mean higher rates and fees. In fact, our jumbo products have among the most competitive rates around. We have customers who've shopped against national lenders and consistently found us lower.
Faster closing times. We close most of our jumbo loans in 30 days or less. This gives you the ability to jump on properties quickly when you find the right one in Houston's fast-moving market.
A real person, not a call center. That's the point at which the difference between a local mortgage broker and a big national lender becomes crystal clear. With Flagstone, your loan officer knows you better than anybody else, so there are no transferred calls and no starting from scratch with a new person every time you call. No surprises at closing.
Understanding Jumbo Loan Requirements
Let's be clear about what jumbo lenders expect from you:
Strong credit. Most jumbo lenders typically require a credit score of 700 or higher. At Flagstone, we lend to a broad range of borrowers but credit quality does matter.
A meaningful down payment. This typically ranges from 10% to 25%, depending on the property's status, your finances, and market conditions. It's not without reason. That said, this is often a point where borrowers realize they're in a better position than they initially thought.
Documentation. Yes, jumbo loans need additional documentation. But this is actually protective for you. Very thorough underwriting catches any issues early. It prevents closing surprises. We'll walk you through exactly what we need and why.
Proof of income and assets. Lenders want proof that you can afford the loan. For most W-2 employees, this is straightforward. For business owners, investors, commission earners, and others, we go deeper. We know how to help you present your financial situation in the best light.
Property appraisal and title search. High value, high attention. We will order a full appraisal and do a complete title check to protect you and the lender.
This is not meant to scare you. It's simply the way jumbo lending works, and we've successfully helped hundreds of clients with this process.
Is a Jumbo Loan Right for You?
Another way to determine whether a jumbo loan makes sense is simply whether the cost of borrowing through a jumbo loan is lower than other options. If you're buying a $1.5M home, then naturally you'll need a jumbo loan.
Sometimes, though, it's not quite so cut and dry: should you put 40% down on a conforming loan, or should you get a conforming loan and then a second mortgage?
This is where an experienced broker can really help and we can run the numbers. We'll show you your options side by side and explain the long-term implications of each. And then we'll help you decide based on your specific financial goals rather than on what a computer algorithm thinks you should do.
Why Flagstone Is Different
We could tell you we have competitive rates and quick closings. And we do. But here's what really sets us apart:
We know Houston's market. We're not simply a call center in another state. We know the neighborhoods, the properties, the local economy, and the complexities of financing in this market.
We have jumbo expertise. Having closed hundreds of jumbo loans, we have seen it all, solved it all and built relationships with jumbo investors and lenders, to your benefit.
We care more about you than quotas. We don't treat our loans like widgets like many big box lenders do. We want you to have the right loan. If we feel there is a better option than jumbo available, we will let you know. If it is, we will make sure the structure works.
We close fast. Most jumbos in 30 days or less. This isn't just something we say. It's what we do. And the difference is obvious to clients trying to secure properties.
Clear communication. We'll keep you informed to make sure you know where you are, what you need to do and what to expect. Clients tell us that transparency and communication are game changers for them.
Ready to Explore Jumbo Financing?
If you're considering purchasing a luxury property in Houston, The Woodlands, Katy, Sugar Land, Pearland, or anywhere in the Houston metropolitan area, let's discuss financing options.
We will first help you become pre-qualified. We will review your situation and present options for your financial profile based on real numbers.
Get Your Free Pre-Qualification or Call A Loan Officer Today at 713-458-3232!
At Flagstone Mortgage, we don't just process loans. We build relationships. We solve problems. And we help Houston's most discerning homebuyers achieve their real estate goals.
Let's talk about yours.
Flagstone Mortgage is a Houston-based mortgage broker. Specializing in jumbo, conventional, VA, and other mortgage types, we have closed over 4,000 loans totaling $1.2 billion and have a 4.9-star customer rating. Combined our team's mortgage industry experience totals 85 years.