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 updates homebuyers will want to know.
First, let’s discuss the current mortgage limits for Travis County. Conventional or conforming loan limits are set at $806,500 for all of Texas in 2025. Standard VA loan limits mirror those of conforming loans. FHA loan limits are capped out at $571,550, please read more about Austin FHA loan requirements.
- All the loan limits apply to single 1-unit properties, multi-unit properties will be higher.
- Special “VA Jumbo” financing options are available to eligible Veterans financing high cost homes. These programs permit loan amounts up to $4m in TX. This program is 100% financing up to $2 loan amounts with no PMI. Greater loans amounts will require a small down payment. 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 mortgage. 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. Homebuyers 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 $1,500,000 loan amounts (680 credit required)
- 10% down payment programs are limited to $2,500,000 loan amounts (700 credit required)
- 15%, 20%, 25% down payment options are available for greater loans over $3.0 mil (credit depending on the loan amount and money down)
Important Jumbo Loan Restrictions:
- The options above are reserved for only primary and second-home residences. Investor/rental properties are not eligible.
- Homebuyers 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.
- Homebuyers will need payment reserves after the down payment and closing costs are satisfied. Payment reserve amount will vary based on credit, down payment, etc. For 95% financing, less than $2m: 3–6 months of reserves is normally required. A higher loan amount could require as much as 9–12 months. *Reserves standards can be met by non-liquid accounts like 401K or personal IRA.
Austin Jumbo Loan Benefits:
- No PMI or mortgage insurance is required for home buyers putting down less than 20%. Homebuyers 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.
Homebuyers can learn more about any of the Jumbo options by calling, or just submit the Info Request Form on this page. Serving all of Travis County, including Barton Creek, Bryker Woods, Bouldin Creek, Rosedale, Rollingwood, Zilker and Tarrytown