What is a Jumbo Loan?
A jumbo loan is a loan that exceeds a particular county’s loan limits. For most areas in Texas, the conventional loan limits range from $100,000 to $510,400. These limits are set by the Federal Housing Finance Agency annually. Any loan amount over $510,400 would be considered a jumbo loan.
Jumbo loans tend to have stricter underwriting guidelines because unlike conventional loans, they are not eligible to be purchased on the secondary market by Fannie Mae or Freddie Mac. Instead, these loans are held by banks or private funds. Jumbo loans usually have tighter debt-to-income (DTI) ratio requirements, larger down payment and reserve requirements, and stricter credit standards. Jumbo loans can be used for primary residences, investment properties, or second home purchases in Dallas.
Jumbo Loan Rates
Jumbo loan rates are usually lower than conventional loans. Part of the reason why jumbo loans tend to have lower rates is because of their stricter qualification criteria. At JVM, our jumbo rates match or beat all the big banks in Dallas.
View mortgage rates for
November 7, 2025
Benefits of Jumbo Loans in Dallas
Jumbo loans offer several benefits for Dallas homebuyers seeking to purchase higher-priced properties. With the Dallas housing market experiencing a surge in property values, jumbo loans provide borrowers with the flexibility to finance homes that exceed conventional loan limits. Additionally, jumbo loans can often have competitive or even lower interest rates than conventional loans, making them a financially attractive option for well-qualified borrowers.
For Dallas buyers looking to purchase luxury homes or properties in high-demand neighborhoods, jumbo loans are often the best fit to ensure adequate funding without the need for multiple loans or complex financing solutions.
Common Myths About Jumbo Loans
There are many misconceptions about jumbo loans that might deter borrowers from considering this option. One common myth is that jumbo loans always have much higher interest rates compared to conventional loans. However, in many cases, borrowers with strong financial profiles can secure lower rates on jumbo loans.
Another myth is that jumbo loans require an unattainable level of income or assets to qualify. While it’s true that the qualification criteria are more stringent, they are not insurmountable. Borrowers with stable incomes, solid credit scores, and a reasonable down payment can often qualify without issue.
Key Considerations for Dallas Homebuyers
If you’re considering a jumbo loan in Dallas, there are a few key factors to keep in mind:
Down Payment Requirements
While conventional loans may allow for down payments as low as 3%, jumbo loans typically require a higher down payment. For Dallas properties, this may range from 10% to 20%.
Debt-to-Income (DTI) Ratio
Lenders often prefer borrowers to have a lower DTI ratio when applying for jumbo loans. This means keeping monthly debt obligations manageable relative to your income.
Credit Score
A higher credit score is often necessary to qualify for a jumbo loan. Scores above 720 are typically preferred, although some lenders may consider borrowers with slightly lower scores depending on other factors in their application.
Who Should Use a Jumbo Loan?
Jumbo loans are an excellent loan option for Dallas borrowers who have strong credit histories and have a decent amount of funds saved up for their home purchase. We strongly recommend that well-qualified borrowers with strong loan applications consider using a jumbo loan if the Dallas property they are looking to purchase exceeds the conforming loan limits.
If you are thinking about obtaining jumbo financing or have additional questions about what loan products you may qualify for, you can reach us here, by phone at (855) 855-4491, or by email at jvmteam@jvmlending.com.
