Jumbo Mortgages

Lenders set their own underwriting rules for jumbo loans, which means the eligibility criteria can differ from one Texas lender to another. It’s important to ask each lender about their specific requirements and underwriting process.

Jumbo loans tend to appeal to Texas buyers with complex income sources, but that also means they typically require more documentation than a standard conventional loan. Many lenders look for a FICO score above 700, and some may require 720 or higher. If your score is below that range, you may need a lower debt-to-income ratio (DTI) to compensate. Most lenders want to see a DTI under 43%, ideally closer to 36%.

Because of the higher loan amounts, it’s also common for Texas lenders to require 10–12 months of cash reserves. Borrowers should expect to provide 30 days of pay stubs, two years of W-2s, bank statements, and details about any investment accounts.
If you’re self-employed, you’ll typically need to show two years of tax returns and at least 60 days of bank statements.

Jumbo loans are manually underwritten, so an underwriter will closely review your credit history, assets, and financial patterns. Past issues such as bankruptcies or foreclosures can make approval more challenging.

Your Texas property must also meet VA appraisal standards, meaning it must be clean, safe, sound, and sanitary. A VA appraiser will verify this before closing.

Not all government-backed loans work well for jumbo financing.

- USDA loans have strict income limits, making jumbo approval nearly impossible.

- FHA loans require mortgage insurance for the life of the loan, which makes strategies like piggyback loans impractical for reducing your balance to conforming limits.

However, VA loans can be used for jumbo financing. The VA guarantees the portion of your loan that falls under the conforming loan limit, and your down payment (if any) is calculated only on the amount above that limit. Some VA jumbo borrowers can even qualify with no down payment and no PMI.

Certain Texas buyers may also qualify for specialty programs such as physician loans, which often offer jumbo financing with 0%, 5%, or 10% down for eligible doctors and dentists.