Some new loan updates have recently come out for Austin home buyers that require Jumbo home financing. The new programs are allowing greater down payment flexibility, in some cases up to 95% financing. In this post we will look at all the latest changes and updates, homebuyers can learn more about any of the jumbo programs at Jumbo Loan Center.
First, let’s discuss the current loan limits for Travis County. Conventional or Conforming loan limits are set at $484,350. Standard VA loan limits mirror those of conforming loans. FHA loan limits are limited to $384,100, please read more about Austin FHA loan requirements.
Note the following:
- All of the loan limits apply to single 1 unit properties, multi-unit properties will be higher.
- VA also offers special “VA Jumbo” financing options that permit loan amount up to $1.5mil in TX. This program is not 100% financing like the normal VA loan but does offer reduced down payments and many other incentives for qualified Veterans. Learn more about Texas VA Jumbo Loans here.
Home buyers that require financing above the typical conforming or FHA loan limit will need a Jumbo loan. Jumbo loans today offer a lot more flexibility when compared to the past, similar to conventional loans. In fact, the loan approval process also works very much the same. Home buyers will qualify based on minimum down payment requirements, credit score requirements and debt to income standards. Below we will discuss the latest guidelines and qualifying tips.
Austin Jumbo Loan Limits:
- 5% down payment programs are limited to $1,950,000 loan amounts (700 credit required, for loans over $1.5m – 740 credit)
- 10% down payment programs are limited to $2,950,000 loan amounts (720 credit required)
- 15%, 20%, 25% down payment options available for greater loans over $5.0 mil (credit depending on loan amount and money down)
- The options above are reserved for only primary and second home residences. Investor/rental properties are not eligible.
- Home buyers will need to fully document their income and assets for loan approval. Just like standard conventional loans, buyers will need to provide a 2-year income history along with satisfactory asset documentation. Stated income and/or no documentation programs are not available.
- All programs require full principal and interest mortgage payments. “Interest only” amortization is available on a case by case basis for home buyers with adequate credit and reserves. Negative amortization is not available.
- Home buyers will need payment reserves after down payment and closing costs are satisfied. Payment reserve amount will vary based on credit, down payment, etc. For 95% programs and loans less than 1.5mil: 3-6 months of reserves is typical. Higher loan amount could require as much as 12-24 months. Reserves standards can be met by non-liquid accounts like 401K or personal IRA.
Jumbo Loan Benefits:
- No PMI or mortgage insurance required for home buyers putting down less than 20%. Home buyers will often have a choice of different single loan and combo (1st and 2nd mortgage) options: 80-15-5 in the case of 95% financing, or 80-10-10 in the case of 90% financing.
- All common fix rate and adjustable rate terms are available.
- All the requirements above are also available for standard rate-term Jumbo refinancing. Cash out jumbo loans are also available, but at reduced loan to value.
- Same day applications 7 days a week, closing in as little as two weeks.
Home buyers can learn more about any of the Jumbo options by calling Ph: 800-840-6449
Proud to service: Cortona, Ridgewood Village, Aqua Verde, Bebys Ranch, Pemberton Heights, Clarksville, Bouldin Creek, Zilker, Tarrytown, Rollingwood, Westfield, Island at Mt Bonnell Shores, Belvedere, Costa Bella, Stratford Hills, Caslano, Williamson County, Bastrop, Caldwell, Hays, Blanco, Burnet, Bexar San Antonio