At Translend Mortgage, we understand that the process of obtaining a jumbo loan can be overwhelming. With so many requirements to meet, it can be difficult to know where to start. That's why we've put together this guide to help you navigate the jumbo loan requirements in Texas.

What is a Jumbo Loan?

A jumbo loan, also known as a non-conforming loan, is a type of mortgage that exceeds the maximum loan amount set by Fannie Mae and Freddie Mac, which are the two government-sponsored entities that purchase mortgages from lenders. In Texas, the conforming loan limit for a single-family home is $548,250 in 2021. Any loan amount that exceeds this limit is considered a jumbo loan.

Jumbo Loan Requirements in Texas

Credit Score

One of the most important jumbo loan requirements in Texas is a good credit score. Since jumbo loans are riskier for lenders, they typically require a higher credit score than a conventional loan. A credit score of at least 700 is generally required, although some lenders may require a score of 720 or higher.

Down Payment

Jumbo loans also require a larger down payment than a conventional loan. In most cases, a down payment of at least 20% is required. This means that if you're purchasing a $1 million home, you'll need to come up with a down payment of at least $200,000.

Debt-to-Income Ratio

Another important jumbo loan requirement in Texas is a low debt-to-income ratio (DTI). Your DTI is the amount of debt you have compared to your income. For a jumbo loan, a DTI of 43% or lower is typically required. However, some lenders may require a lower DTI, such as 38%.


Jumbo loans also typically require borrowers to have a certain amount of reserves. Reserves are funds that are set aside to cover the mortgage payment in case of a financial emergency, such as a job loss. The amount of reserves required varies depending on the lender, but it's typically between 6 and 12 months of mortgage payments.


Jumbo loan requirements in Texas also include extensive documentation. Borrowers must provide proof of income, such as pay stubs, tax returns, and bank statements. Lenders will also require a property appraisal, which can be more expensive than an appraisal for a conventional loan.

Closing Costs

Closing costs for a jumbo loan can also be higher than a conventional loan. This is because jumbo loans are riskier for lenders, and they may require additional fees to cover that risk. Borrowers should be prepared to pay closing costs of 2% to 5% of the loan amount.

Choosing the Right Lender

Since jumbo loans are riskier for lenders, not all lenders offer them. It's important to choose a lender who has experience with jumbo loans and understands the unique requirements. At Translend Mortgage, we have years of experience working with borrowers who need jumbo loans. We can help guide you through the process and ensure that you meet all of the requirements.


Obtaining a jumbo loan in Texas can be a complex process, but with the right lender and the right information, it can be done. By understanding the jumbo loan requirements in Texas and working with an experienced lender, you can achieve your dream of owning a luxury home.