Loan Program

Jumbo Loans in Austin, TX

A jumbo loan is any mortgage above the 2026 conforming limit of $832,750 for a single-family home in most Texas counties.

One dollar over that line and the loan leaves the agency market entirely. Different underwriting, more reserves, deeper documentation, and a different set of lenders — which is precisely why the smartest move on a jumbo file is sometimes to avoid needing one.

The line, and what crossing it changes

Below $832,750, a loan is conforming — eligible for purchase by Fannie Mae or Freddie Mac, priced off a deep and liquid market.

Above it, a loan is jumbo, held in portfolio or sold into private securitizations. Those buyers price risk themselves, and they ask for more.

Reserves are the requirement that surprises people most. They must be documented and seasoned — typically 60 days of statements — and they cannot be the same dollars you closed with. On a $1.2M purchase, twelve months of reserves can mean six figures sitting in an account after you have already written the down payment cheque.

The move most borrowers do not know about

If you are modestly above the limit, bringing enough additional down payment to land at $832,750 can move the entire loan into conforming pricing.

On a $900,000 purchase, an extra $30,000 down can be worth more than anything you would achieve by shopping rate — because it changes which market the loan lives in rather than just its position within one.

It does not always win. Larger down payments tie up capital, and on some files the jumbo pricing is close enough that keeping the cash is better. But it should be run as a comparison rather than assumed away, and many lenders never mention it because they only quote what you asked for.

We model both structures side by side as a matter of course.

When jumbo is unavoidable, and how to qualify

Plenty of Austin-area purchases genuinely exceed the limit — West Lake Hills, Rollingwood, Lake Travis waterfront, acreage in Dripping Springs, the higher end of Georgetown and Lakeway.

Three paths when standard documentation is difficult:

Asset depletion. Converts liquid assets into qualifying income by dividing eligible balances over a term, commonly 60 to 120 months. This is the answer for retirees, anyone post-liquidity-event, and borrowers whose wealth is real but whose taxable income is modest. A borrower with substantial assets and a small W-2 is a hard conventional file and a straightforward asset-depletion one.

Bank statement programs. Twelve or twenty-four months of deposits instead of tax returns, for self-employed borrowers whose returns understate actual cash flow. More on bank statement loans.

Portfolio lending. A lender holding the loan rather than selling it can be flexible on unusual property and unusual income — distinctive architecture, significant acreage, complex entity structures.

Which of these fits depends on where your strength actually is: assets, deposits, or a property a standard box cannot hold.

Where jumbo files go wrong in Central Texas

The appraisal. Distinctive homes have thin comparable sales. A custom build on acreage in a market of production homes gives the appraiser little to work from, and thin comp sets produce conservative values. Build that possibility into your planning rather than discovering it two weeks before closing.

Documentation started late. Jumbo files live or die on paperwork. Self-employed borrowers in particular should be gathering returns, K-1s and statements before making an offer, not after.

Taxes underestimated. Central Texas combined rates run 1.55% to 2.9% depending on the address. On a $1.4M home even the low end is roughly $1,800 a month before principal and interest. It frequently determines the price ceiling more than the rate does.

Reserves counted wrong. Down payment is not reserves. Closing funds are not reserves. Retirement accounts often count at 50-70% of vested balance.

Jumbo across Texas

Loan limits are set by county, and the $832,750 figure applies to most Texas counties for a single-family home. Limits rise for two-to-four unit properties.

Where jumbo comes up most in our market: West Lake Hills and Rollingwood where nearly every purchase exceeds it, Dripping Springs on acreage, Lago Vista on Lake Travis waterfront, and the Park Cities in Dallas and west Plano.

Frequently asked questions

What is the jumbo loan limit in Texas for 2026? $832,750 for a single-family home in most Texas counties. Anything above that is a jumbo, or non-conforming, loan. Limits are higher for two-to-four unit properties and are set county by county.

How much do I need to put down on a jumbo loan? Commonly 10-20% minimum depending on loan size and lender, with better pricing at 25% and above. There is no single figure — it varies more between lenders than conforming down payments do.

What credit score do I need for a jumbo loan? 700 is a practical floor. Meaningful pricing tiers generally begin at 740 and improve again at 760 and 780.

How many months of reserves does a jumbo loan require? Typically six to twelve months of full payments held after closing, and more on larger loans. They must be documented and seasoned, and they cannot be the money you closed with.

Can I avoid a jumbo loan? Sometimes. If you are modestly above the limit, a larger down payment that brings the loan to $832,750 moves it into conforming pricing. Worth running as a comparison before assuming jumbo is the only path.

Can I get a jumbo loan without tax returns? Often, through asset depletion or bank statement programs. Which fits depends on whether your strength is assets or deposits.

Are jumbo rates higher than conforming? Not always. Jumbo pricing has at times been competitive with or below conforming, because portfolio lenders price their own risk. The larger differences are in reserves, credit and documentation rather than rate.

Do jumbo loans require two appraisals? Some lenders require a second appraisal above certain loan amounts. It varies by lender and loan size.

Start with the comparison

Before assuming a jumbo structure, it is worth seeing both: the jumbo terms, and what a larger down payment into conforming would do. On a purchase near the line those two numbers can be surprisingly far apart.

Start your application · Run the numbers · Call 737-347-1314

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