• Jumbo

    Jumbo mortgages are home loans that exceed conforming loan limits. A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you.

    The limit on conforming loans is $417,000 in most areas of the country, but jumbo mortgages can exceed these limits. Even so, if you're considering a home in a high-cost area, you may still be able to obtain a conforming fixed-rate mortgage or adjustable-rate mortgage for up to $625,500. FHA loans have limits up to $729,750. Contact a mortgage loan originator to learn more.

    Benefits and Considerations

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    • Higher Purchase Limits - Jumbo mortgages can exceed the conforming loan limit, currently $417,000 in most parts of the United States.
    • Competitive Rates - Jumbo loan rates have reached historic lows in recent years, and the interest on loans up to $1 million may be tax-deductible.
    • Second Mortgage - Many jumbo mortgage lenders may allow you to take out a second mortgage for a combined loan-to-value ratio of up to 90 percent.

    Requirements and Qualifications

    • Credit History - Conventional loans are a good choice for borrowers with very good credit, which generally means a FICO score of 700 or higher.
    • Financial Strength - When applying for a jumbo mortgage, the maximum debt-to-income ratio for jumbo for loans is 45 percent, and the required reserve amount for jumbo loan borrowers can be as high as 20 percent of the value of the loan.
    • Down Payment - There is no private mortgage insurance option with a jumbo mortgage, so the required down payment will be larger - typically 20 percent.
    • Property Appraisal - The property appraisal must support the purchase price for the home and the mortgage the borrower wants.

    Jumbo mortgages are a good solution for borrowers who are looking to buy a higher-priced home. Compare mortgage options to learn more on your own, or contact a mortgage loan originator to find out whether a jumbo loan may be right for you.

  • Equal Housing Lender

    Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice.

    Any rates shown above are sample rates for the purchase of a single-family primary residence based on a 60-day lock period. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your guaranteed rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors.

    To guarantee a rate, you must submit an application to Austin First Mortgage and receive written confirmation from a mortgage loan originator that your rate is locked. Application can be made online.

    Jumbo Loans - Any sample APR calculation on this page assumes a $500,000 loan with a 20% down payment and borrower-paid finance charges of 0.862% of the loan amount, plus origination fees if applicable. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Jumbo rates are for loan amounts exceeding $417,000 in the states we serve.