Texas Jumbo Loan

The Texas Jumbo loan is big, like our great state itself! If you need such a large loan, be prepared. Here’s what you need land the big one.

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If you need a Texas-sized loan to purchase the home of your dreams, you may need to take out a jumbo loan.

A jumbo loan is a type of mortgage used to finance loan amounts above the conforming loan limit.

The 2026 baseline conforming loan limit for a single-family home is $832,750, and jumbo loans allow borrowers to finance amounts above the limit for their county.

In Houston, the conforming loan limit is $832,750. A Houston jumbo loan allows you to borrow more than the conforming loan limit so you can purchase your home.

Jumbo loans are a mortgage option for buyers whose loan amount is too large for a conforming conventional loan. If you need a Texas mortgage, here’s what you need to know before you apply for a Texas jumbo home mortgage loan.

Your Guide to Jumbo Loans in Houston, Texas

If your loan amount exceeds the FHFA conforming loan limit for your county, you will need a jumbo loan.

Because jumbo loans exceed the conforming limit, they can’t be sold to Fannie Mae or Freddie Mac, so lenders typically apply stricter credit, reserve and down payment requirements.

Jumbo loans are funded by banks and private investors, and rates can be competitive depending on market conditions and your financial profile.

You can apply for a fixed-rate or adjustable rate jumbo loan.

Here’s how you can qualify. Read on or contact us to get more details.

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How to Qualify for a Texas Jumbo Loan

Before you apply for a Jumbo loan, you should take the following steps to ensure lenders will view you as an ideal borrower. These are the jumbo loan qualification requirements for 2026.

1. Raise Your Credit Score
Jumbo loans typically require a higher credit score than conforming loans. Many lenders look for scores around 700 or higher, and requirements vary by lender. Your lender will run a credit report when you apply.

2. Pay Off Your Debt
When you apply for a jumbo loan, your lender will consider your debt-to-income ratio. If you have too much debt, you may not be approved for a jumbo loan. Many lenders look for a debt-to-income ratio below about 43% to 45%.

3. Save Up Some Cash
You’ll need enough cash to cover your down payment and closing costs. Many lenders also require cash reserves that could cover several months of mortgage payments, and the amount varies by lender and loan size.

4. Gather Documents
When you get ready to buy a home in Texas and apply for a loan, you are going to be asked to provide a lot of documentation. Tax returns, bank statements, investment account information, and pay stubs are just a few of the things you will be asked to provide.

Have all these documents organized so you can provide them to your lender quickly. Being prepared can help the process move more smoothly.

Some jumbo lenders may require a second appraisal, especially on larger loan amounts.

Jumbo and Conventional Loans: The Key Differences

There are a few key differences between jumbo loans and traditional loans that you should be aware of.

Higher Interest Rates

While interest rates on jumbo loans are competitive, they can be more expensive than conventional mortgage rates. Depending on your financial health, you may be able to get a lower rate. Don’t be afraid to explore your options and choose the lender that offers the best rate.

Fees and Closing Costs

Large loans come with large fees. Be sure to have enough cash saved up to cover closing costs and any fees that come up during the buying process. Fees vary by lender, so be sure to shop around.

Jumbo Down Payments

Naturally, the bigger your loan, the bigger your down payment. Most lenders require a 20% down payment at minimum. Some lenders may allow you to make a smaller down payment if you have a stellar financial record, but the bigger your down payment, the less interest you’ll pay over time.

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Texas Jumbo Loan FAQs

What is a jumbo loan?

A jumbo loan is a mortgage with a loan amount above the conforming loan limit set each year by the Federal Housing Finance Agency (FHFA). Because jumbo loans exceed that limit, they cannot be sold to Fannie Mae or Freddie Mac and follow each lender's or investor's own guidelines.

When do I need a jumbo loan in Texas?

You need a jumbo loan when the amount you borrow, not the purchase price, is higher than the conforming loan limit for the county where the home is located. See current limits on our Texas conventional loan limits page.

What credit score do I need for a jumbo loan?

Jumbo loans typically require higher credit scores than conforming conventional loans. Exact minimums vary by lender, loan size and down payment.

How much down payment does a jumbo loan require?

Jumbo loans usually require a larger down payment than conforming loans, and the minimum varies by lender, loan amount and property type. Some lenders offer lower down payment options for well-qualified borrowers.

Do jumbo loans require cash reserves?

Many jumbo lenders require cash reserves, meaning savings left over after closing that could cover several months of mortgage payments. The required amount varies by lender and loan size.

Are jumbo loan rates higher than conventional rates?

Not always. Jumbo rates can be higher or lower than conforming rates depending on market conditions, the lender and the borrower's profile. See today's jumbo loan rates in Texas for current pricing.

Can I get a fixed-rate or adjustable-rate jumbo loan?

Yes. Jumbo loans are commonly available as fixed-rate or adjustable-rate mortgages, though available terms vary by lender.

Have a question about your situation? Get a custom quote or call 888-505-1718.