Any loan that exceeds this limit is considered to be a Jumbo loan. Like conforming loans Jumbo loans can be packaged and sold to Wall Street but they often come with a higher rate because they are considered riskier. If you work with a major lender such as Chase, Citi, Wells Fargo, or a similar lender that sells a majority of their loans to Wall Street you will be subject to certain restrictions and receive a mortgage loan that factors in Wall Street’s profits.

However, if you bypass a large bank and work with a niche lender you won’t be subject to these same issues. Niche lenders hold loans on their own books and collect the interest for the life of these loans. Because these loans are not being sold lenders can set their own rules, rates and fees which are often more favorable. The best jumbo mortgage rates are often found with these lenders who specialize in jumbo home loans.

At DWFJumbo.com we work with several niche jumbo mortgage lenders who offer attractive Jumbo mortgage rates and terms in Texas especially in the Dallas-Fort Worth metroplex.

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.

For information on low jumbo loan rates in Texas email jhurst@moneysafe.com.