All Texas home loans greater than $766,550 are automatically considered “jumbo loans,” thus, the Texas jumbo loan limit for 2024 is anything over that amount.
If you’re in the market for a home in Texas, you may want to consider obtaining a jumbo loan to finance the purchase.
What the heck is a jumbo loan?
A jumbo loan is a type of mortgage that exceeds the loan limits set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy and sell mortgages on the secondary market.
In Texas, the 2024 conforming loan limit is $766,550, which is a $40,350 increase from the 2023 limit of $726,200 for a single-family home; however, jumbo home loans can go well beyond that amount.
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Why Consider a Texas Jumbo Home Loan?
Jumbo home loans are designed for high-end homebuyers who need to borrow more than the conforming loan limits.
These loans can be used to finance a primary residence, second home, or investment property.
In Texas, jumbo home loans can be used to finance properties up to $3 million or more, depending on the lender and the borrower’s qualifications.
The main advantage of a jumbo home loan is that it allows borrowers to purchase a more expensive home without having to make a large down payment.
Conventional mortgages typically require a down payment of at least 20% (not always), while jumbo home loans may require as little as 10% down (sometimes even less).
This can be a significant benefit for homebuyers who want to preserve their cash reserves or invest their money elsewhere.
Another benefit of jumbo home loans is that they offer competitive interest rates.
While jumbo home loans typically have slightly higher interest rates than conventional mortgages, they are still lower than many other types of loans, such as credit cards or personal loans.
Additionally, the interest on jumbo home loans may be tax-deductible, which can help reduce the overall cost of borrowing.
What is the Texas Jumbo Loan Limit 2024?
The specific jumbo loan amount limit in Texas varies depending on the county in which the property is located.
Click HERE to view the 2024 conforming loan limits in Texas.
In most Texas counties, the jumbo loan limit for a single-family home is $766,550 in 2024.
- One-Unit Properties: $766,550
- Two-Unit Properties: $981,500
- Three-Unit Properties: $1,186,350
- Four-Unit Properties: $1,474,400
It’s important to note that these loan limits are subject to change on an annual basis, so it’s best to check with a lender or mortgage broker for the most up-to-date information on jumbo loan limits in Texas.
Pro Tip: It is possible to exceed the jumbo loan limit in your county if it’s considered a high cost of living area.
Do Jumbo Loans Relate to Home Prices?
Yes, jumbo loans do relate to home prices.
Jumbo loans are used to finance higher-priced properties that may exceed the loan limits for conventional mortgages.
As a result, jumbo loans are directly related to home prices, as they are typically used to finance higher-priced homes.
In areas with high home prices, jumbo loans are more common, as borrowers need to borrow more than the conforming loan limits to purchase a home.
The size of the jumbo loan will depend on the price of the home being purchased, as well as other factors such as the borrower’s credit score, income, and debt-to-income ratio.
Generally, jumbo loans are considered riskier for lenders than conforming loans, as they are typically larger in size and may require higher down payments and stricter underwriting standards.
Overall, jumbo loans play an important role in the housing market by allowing borrowers to finance higher-priced homes and helping to drive demand for higher-priced properties.
Need Help With Your Texas Jumbo Loan?
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If you’re thinking about buying or refinancing a home, or if you have questions about getting the best interest rate, obtaining jumbo loan financing, or any other questions about what loan products you may qualify for, you can get in touch with us HERE.
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About the Author
Brian Reese is a senior advisor and co-owner at District Lending. He is one of the world’s leading experts in veteran benefits, having helped millions of veterans secure their financial future since 2013. Brian is the founder VA Claims Insider, an education-based Coaching & Consulting company whose mission is to educate and empower veterans to get the VA disability benefits they’ve earned for their honorable service. A former active-duty air force officer, Brian deployed to Afghanistan in support of Operation Enduring Freedom. He is a distinguished graduate of management of the United States Air Force Academy and earned his MBA as a National Honor Scholar from the Spears School of Business at Oklahoma State University.
In Brian’s Own Words:
“As a military veteran, I’ve made it my life’s mission to help people live happier and wealthier lives. District Lending brings this mission to life. We believe in integrity, honesty, and transparency, which is why you’ll see our rates right on our website. You’ll find lower rates and zero lending fees, which means you can buy your dream home for less. The savings are passed on to you — the way it should be.”
– Brian Reese, Advisor and Co-Owner, District Lending
