DEFINITION: Jumbo Loan, Jumbo Loans, Jumbo Home Loans, Jumbo Mortgages.

A Texas jumbo loan is any mortgage loan that exceeds the conforming loan limit of $417,000 for the year 2010. Jumbo loans are considered to be non-conforming loans which mean they are not eligible for purchase by a GSE or government-sponsored enterprise (i.e., Fannie Mae/Freddie Mac) and instead are held on the lenders books as a portfolio loan.  In contrast, a conforming loan is eligible for purchase by a Fannie Mae/Freddie Mac and is generally referred to as a salable loan.

Jumbo home loan limitations are not the only guidelines that determine if a loan is eligible for purchase by Fannie Mae/Freddie Mac.  Other guidelines (referred to as underwriting guidelines) are applied to the qualification of a conforming loan.  A few examples include the loan-to-value ratio, debt-to-income ratio, and credit history including a minimum qualifying credit score.

High cost states have higher jumbo loan limits.  The following chart shows that properties located in Alaska, Guam, Hawaii and the U.S. Virgin Islands have higher conforming loan limits for single family loans.

States Cost Factor Jumbo Loan Limits
Contiguous US General $417,000.00
Contiguous US High Cost $729,750.00
Alaska, Hawaii and Virgin Islands General $625,500.00
Alaska, Hawaii and Virgin Islands High Cost $938,250.00

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