Dallas Jumbo Home Loans
A jumbo mortgage is a home loan with an amount that exceeds conforming loan limits imposed by Fannie and Freddie Mac, the two government entities that guaranteed mortgages from lenders. Jumbo mortgages tend to be used for large, single-family homes in Dallas. While the underwriting process for jumbo mortgage is similar to that of a conforming mortgage, the requirements differ slightly.
Home loans that exceed the maximum amount guaranteed by Freddie Mac and Fannie Mae—the government-affiliated agencies that secure mortgage loans—are called jumbo loans. The maximum, conforming amount that can be backed by these agencies for mortgage loans in Dallas, Texas is $417,000. Jumbo loans are backed by private entities instead of the government, and come with a slightly different application process and different set of requirements. Jumbo loans in Dallas, Texas are generally used for large, single-family homes; both primary residences and vacation homes, and they are sometimes referred to as non-conforming loans.
Jumbo Home Loans
- Over $417,000 Loan Value
- Up to $1,000,000
- 80% LTV
- Subject to Investor Requirements
- Fixed Rate & Adjustable Rate Options
- Local Texas Customer Service
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More About Dallas Jumbo Home Loans
To understand the hurdles to taking out Dallas conventional home loans, would-be homeowners in Dallas need to understand that each loan comes with a chance that the lender will lose its investment. Since conventional home loans come with higher risks, lenders have to set higher interest rates, higher credit requirements, and higher income requirements to make them worthwhile compared to their government-backed counterparts. In other words, would-be homeowners in Dallas interested in Dallas conventional home loans have to convince Dallas lenders based on their own creditworthiness, whereas those interested in government-backed home loans can count on government backing to make up for part of the slack.
However, it is important to note that a conventional mortgage in Dallas has more than enough upsides to make up for their harsher borrowing conditions. For starters, conventional home loans come with far fewer restrictions on their usage, meaning that borrowers can use them to fund a much wider range of purchases. In fact, a conventional mortgage in Dallas can even be used to invest in rental properties, which is something that fall far outside of the intended purpose of VA and FHA home loans. In the end, both kinds of home loans have their respective upsides and downsides, meaning that each would-be homeowner in Dallas has to make their choice based on what matters most to them.