Houston Jumbo Home Loans
We Guide The Way
Houston Jumbo Home Loans
30, 20, 15 Year Fixed Mortgages
If you're looking to purchase a larger, more luxurious home in Houston, TX, a jumbo home loan may be the right option for you. At Flagstone Mortgage, we can broker competitive rates on jumbo loans up to $3,000,000.
To qualify for a Houston jumbo mortgage, you will typically need a credit score of at least 700, as well as documentation of income and assets. In Houston, TX, the maximum debt-to-income (DTI) ratio for jumbo loan borrowers is 45%, and the required reserve amount is generally at least six months in reserves after closing.
We offer both fixed rate and adjustable rate options, as well as 80% LTV maximum, subject to investor requirements. Our local Houston customer service team is available to assist you every step of the way, from application to closing. We understand that purchasing a luxury home can be a complex process, and we're here to help make it as easy and stress-free as possible.
Overall, a Houston jumbo home loan can be an excellent mortgage option for those looking to purchase a larger, more expensive home. With competitive rates, flexible options, and local Houston customer service, Flagstone Mortgage is the perfect lender to guide you through the process
What Are the Requirements for a Jumbo Home Mortgage in Houston, TX
A Few Things To Consider
If you're interested in qualifying for a Houston jumbo loan, there are a few important steps you can take to ensure that lenders view you as an ideal borrower. Here are some of the jumbo loan qualification requirements for 2021:
1.) Raise your credit score: Jumbo loans typically require a higher credit score than traditional loans, so it's important to work on improving your credit score before applying. Your score should be at least 720 before you apply, as your lender will run a credit report when you meet with them.
2.) Pay off your debt: Your debt-to-income ratio is an important consideration when applying for a jumbo loan. Most lenders prefer to loan to borrowers with a debt-to-income ratio of less than 45%, so it's important to pay off as much debt as possible before applying.
3.) Save up some cash: You'll need enough cash to cover your down payment when you apply for a jumbo loan, and many lenders will also want you to have at least one year of mortgage payments in your bank. Having enough cash stored up shows lenders that you're at low risk of defaulting on your mortgage.
Conforming Home Mortgage
Our Conforming Home Mortgage option is designed to fit the needs of those looking for a mortgage that conforms to the guidelines set by Fannie Mae and Freddie Mac.
Jumbo Home Mortgage
A jumbo loan is a mortgage for high-value properties that exceed the conforming loan limits set by government-sponsored enterprises, with stricter qualification requirements and higher interest rates due to the larger loan amount.
4.) Gather documents: When you apply for a loan to buy a home in Houston, you'll be asked to provide a lot of documentation, including tax returns, bank statements, investment account information, and pay stubs. Make sure you have all these documents in a neat folder and be able to hand them over to your lender without any issues.
5.) Prepare for a double appraisal: Your home may have to be appraised twice when you take out a jumbo loan. This is because jumbo loans often exceed the conforming loan limit, and lenders want to ensure that the home is worth the amount being borrowed.
By following these steps, you can increase your chances of qualifying for a Houston jumbo loan. With a higher credit score, lower debt-to-income ratio, and enough cash saved up, you'll be in a better position to secure the financing you need to purchase your dream home.
Non-QM Mortgage
This type of loan may be suitable for those who can demonstrate their creditworthiness through bank statements or Debt Service Coverage Ratio (DSCR).
FAQ's About Jumbo Home Loans in Houston, TX
What are jumbo loan rates compared to conventional?
Jumbo loan rates are often competitive with, and sometimes even lower than, conventional loan rates, especially for well-qualified borrowers with excellent credit, substantial assets, and strong financial profiles. However, this relationship can vary based on market conditions and individual lender pricing strategies. Historically, jumbo home loan rates carried a premium over conventional rates because these larger loans weren't backed by Fannie Mae or Freddie Mac, meaning lenders assumed more risk. Still, today's competitive lending environment has shifted the landscape, with many jumbo lenders offering rates within 0.25% to 0.50% of conventional rates, and in some cases matching or beating them for borrowers with credit scores of 720 or higher and significant down payments.
What are the requirements for a jumbo loan?
The requirements for a jumbo loan are more stringent than conventional financing, typically including a minimum credit score of 700-720 (though 740+ secures the best rates), a debt-to-income ratio below 43-45%, a down payment of at least 20% (though 10-15% programs exist with higher rates or PMI), liquid reserves equivalent to 12+ months of mortgage payments after closing, and comprehensive financial documentation including two years of tax returns, W-2s or 1099s, recent pay stubs, bank statements for all accounts, and proof of assets.
What's the difference between a jumbo loan and a conventional loan?
The difference between a jumbo loan and a conventional loan is primarily the loan amount, jumbo loans exceed the conforming loan limit ($806,500 in Texas for 2025) while conventional loans stay at or below this threshold, with jumbo loans requiring stricter qualification standards including higher credit scores (typically 700-720 minimum vs. 620 for conventional), larger down payments (usually 20% vs. 3-5% for conventional), more substantial reserves (12+ months vs. 2-6 months), and more rigorous income documentation since they're not backed by Fannie Mae or Freddie Mac.
What is the jumbo loan limit in Texas?
The jumbo loan limit in Texas is any mortgage amount exceeding $806,500 for a single-family home in 2025, which represents the conforming loan limit set by the Federal Housing Finance Agency, meaning if you're buying or refinancing a Texas home for more than $806,500, you'll need jumbo financing rather than a conventional conforming loan. Understanding the jumbo loan limit Texas is important because unlike high-cost areas in California, New York, or Hawaii where conforming limits can reach $1.2 million or higher, Texas doesn't have any counties designated as high-cost areas, so the standard baseline conforming limit of $806,500 applies uniformly across the entire state whether you're buying in Houston's River Oaks, Dallas's Highland Park, Austin's Westlake, or rural East Texas.
How much down payment do you need for a jumbo loan?
The down payment for a jumbo loan typically requires at least 20% of the purchase price to secure the best rates and avoid private mortgage insurance (PMI). However, some jumbo loan programs allow down payments of 10-15% with slightly higher interest rates or jumbo PMI. Ultra-qualified borrowers with exceptional credit (780+), substantial reserves, and low debt-to-income ratios may access programs that require as little as 10% down for loan amounts up to $2 million.