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Jumbo Loans

A Texas jumbo loan is any mortgage loan that exceeds the conforming loan limit of $417,000. Jumbo loans are considered to be non-conforming loans which means they are not eligible for purchase government-sponsored enterprises (i.e., Fannie Mae/Freddie Mac) and instead are held on the lenders books as a portfolio loan.

Because jumbo loans are not eligible for purchase by Fannie Mae and Freddie Mac there is less demand to hold them and the rates tend to be higher.  Although not widely published these days, there are still many jumbo options.

One option for jumbo size purchases up to about $800,000 is a jumbo split mortgage.  This entails a first mortgage of $417,000 followed with a second mortgage for the remainder of the amount being financed.  Your loan officer will calculate the blended interest rate for the combined first and second mortgages to make it easy to compare to other options.

The more common option is to qualify for a traditional jumbo loan.  Terms and requirements for jumbo loans are different than for conventional but there are still a few portfolio lenders out there willing to provide financing at low rates.

To learn about VanDyk Mortgage's jumbo loan options call our Senior Loan Officer, Julie Post, at 469-916-5780.