Best jumbo loans in Texas for 2022 • Benzinga
With the recent increase in the cost of building materials, rising inflation and seemingly ever-higher interest rates, jumbo loans are becoming more and more common. A jumbo loan is a loan that exceeds the upper limit that Freddie Mae and Fannie Mac put on financing a home loan.
If you’re looking to buy a home in a high-value area or one of the Lone Star State’s many emerging markets, you may need to consider a jumbo lender when shopping around. Let’s take a look at some of the best giant mortgage lenders in Texas, and let’s take a closer look giant mortgages and discuss how they differ from standard home loans.
Best jumbo loans in Texas
Finding the perfect jumbo loan is all about finding the right financing partner. With so many different mortgage options, it can seem difficult to find the one that best suits your needs. Also, you should remember that not all lenders you will see online operate in all areas of Texas, and not all lenders offer jumbo loans.
When looking for a jumbo mortgage in Texas, you have many options. The following financial institutions serve the Lone Star State and offer unique qualification standards or benefits to applicants that help them stand out from competing jumbo loan providers.
Angel Oak offers standard financing options but primarily markets its services for less traditional loans such as portfolio loans, investment loans, and jumbo loans. It creates products primarily for borrowers in unique financial situations – for example, business owners with non-traditional income documents.
With products ranging from low-interest loans for qualified buyers to specialized programs for those with less than stellar credit, Angel Oak offers flexible options for buyers looking to buy more expensive homes. All of Angel Oak’s jumbo loan program choices can be used for primary residences, secondary residences, or investment properties. Angel Oak’s Jumbo Gold Prime Loan Offers Highest Qualified Buyer Approval With Up To 50% debt to income ratioa down payment as low as 10% and loan amounts of up to $3.5 million.
The Jumbo Platinum Non-QM loan allows buyers who faced bankruptcy or foreclosure more than four years ago to obtain a jumbo loan. It also offers a one-year tax filing program, which means a past credit error won’t necessarily prevent you from getting a loan when you submit your full tax return for review. With flexible options to suit your needs, Angel Oak is a great option for jumbo loans in Texas.
With a simple app and plenty of loan options, it’s not hard to see why Rocket Mortgage is one of the nation’s leading home lenders. This branch of Quicken Loans offers you a mortgage process that is simple, convenient, efficient and accessible to all buyers. Rocket Mortgage’s jumbo loan application requires less paperwork and time than many competitors.
Rocket Mortgage jumbo loans are available for purchases or refinances of up to $2.5 million on primary residences, second homes, or investment properties. You must have a minimum credit score of 680, pay between 2% and 6% of your loan value in closing costs, and have a debt-to-equity ratio of 45% or less.
Avg. Days before loan closing
30 – 40
Available in: CA, CO, CT, DC, FL, GA, IL, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA, WA
Independents or entrepreneurs generally find it more difficult to obtain financing to buy a house. This is especially true when looking to apply for jumbo loans with non-traditional sources of income. Many mortgage lenders ask these potential buyers to provide a lot of additional information before they can get a home loan. Some major lenders consider self-employed men and women to be riskier loan candidates.
Fortunately, CrossCountry Mortgage has special programs in place for people who might not qualify for a mortgage the traditional way. CrossCountry Mortgage offers programs that allow you to qualify for a loan based on potential cash flow, bank statements, 1099 documents, or liquid assets.
This lender offers financing of up to $3 million to borrowers with a credit score as low as 620 points. Its loan-to-value ratios start at 85% when buying a new home, and it offers 15-, 30-, and 40-year fixed rates and adjustable rate programs. If you’ve looked for a mortgage in the past and had difficulty because you’re self-employed, then CrossCountry Mortgage might be able to help.
North American Savings Bank
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North American Savings Bank (NASB) is another major lender that uses its resources and lending experience to provide you with several mortgage options, including jumbo loans. The NASB Jumbo Loan Program has unique qualification standards, including a maximum debt-to-equity ratio of 43%, a maximum loan amount of $1.25 million, and a minimum down payment of 10%.
Although the loan balances available through NASB are lower than those of most competitors, this lender might be right for you if you have financial errors on your record. NASB jumbo loans can be obtained just two years after bankruptcy and just four years after a foreclosure or short sale. If you qualify and have recently filed for bankruptcy or foreclosure, the NASB could still allow you to finance the perfect home with a jumbo loan.
New US funding
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New American Funding also offers jumbo loans for Texas borrowers, with loan balances of up to $3 million available. New American allows you to use a cosigner when applying for a jumbo loan, which can help you invest in a higher value property with a lower income. A co-signer is someone who doesn’t live with you, but whose financial history can help you get financing.
The biggest benefit of financing your home through New American is the company’s “5 Year Rate Protection Pledge.” New American offers you the flexibility to refinance without a lender or appraisal fees at any time over the next five years if rates become more favorable, ensuring you qualify for the best possible rate. If you’re concerned about potentially high market rates and want to be sure you’re getting the best deal, check out New American’s loan offers.
What is a Jumbo Loan?
The Federal Housing Finance Agency (FHFA) is a government agency that sets a consistent limit on home loans. Properties with loans below the conforming limit can be sold on the secondary market and are within the financing limits of Freddie Mac and Fannie Mae. For the vast majority of the country, including the entire state of Texas, the compliance limit is $647,200. Any mortgage loan above this amount is considered a jumbo loan.
In 2022, the FHFA increased the compliance limit to $98,950. This was the largest year-over-year increase and was an indicator of rising house prices in 2021. Jumbo loans are similar to typical home loans, except they are for amounts higher and sometimes carry higher rates. The VA and FHA programs can be used in conjunction with jumbo loans, and these loans can be structured as fixed or adjustable rate mortgages.
How to prepare for a jumbo loan
There are steps you can take to increase your chances of being approved for a jumbo loan, including the following.
Check your credit report: Jumbo loans pose a higher risk to lenders compared to conforming loans, which means you might need a higher score to qualify. Take the time to review your credit report with the three major bureaus and point out any negatives if there are any you don’t recognize.
Repay the debt: One of the fastest ways to improve your debt ratio is to pay off outstanding balances before applying for a loan. You may want to take a few months to focus on eliminating as many student loans, credit cards, or other monthly recurring debt as possible before applying. This process can be especially helpful if you miss other application areas (for example, if you have a lower credit score).
Avoid other apps: During the underwriting process, your lender will review your financial details as they appear on your application. Avoid opening new lines of credit or soliciting other sources of financing when applying for a mortgage to improve your chances of approval.
Frequently Asked Questions
What is the jumbo loan limit in Texas?
Any mortgage over $647,200 is considered a jumbo loan in the state of Texas.
Can you make a big cashout in Texas?
Cash-out refinances are possible in Texas, although the required loan-to-value ratio may be higher compared to conforming loans.