A Jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.
In 2025, the standard conforming limit for most Texas counties is $766,550.
Any loan amount above that limit is considered jumbo, and super-jumbo loans typically start at $2 million or higher.

A Non-QM (Non-Qualified Mortgage) Jumbo loan is designed for borrowers who need flexible underwriting — often those with complex income, self-employment, or nontraditional financial profiles.
Instead of strict conventional rules, lenders evaluate overall creditworthiness, liquidity, and assets to approve high-value mortgages.

These programs are ideal for:

High-net-worth individuals and investors

Self-employed borrowers with variable income

Professionals with large down payments or bonus-based compensation

Foreign Nationals or ITIN borrowers purchasing luxury homes

Retirees using asset depletion or portfolio income

Jumbo loans: $832,750 up to around $2 million

Super-Jumbo loans: $2 million–$10 million+ (depending on assets, reserves, and lender appetite)

Texas lenders often structure customized Non-QM jumbo programs for luxury and investment properties.

Minimum scores typically range from 660–700, but 740+ earns the best rates and terms.
Strong compensating factors (like high liquidity or low debt ratios) can offset a lower score.

Typical down payment requirements:

10–15% down for primary residences

20–25% down for second homes or investment properties

25–30% down for super-jumbo loans above $3 million

Lenders may require larger reserves (6–12 months of payments) for higher loan amounts.

Because these are Non-QM loans, you can qualify using alternative methods such as:

Bank statements (12–24 months)

1099 income

CPA-prepared P&L statements

Asset depletion or cash-flow qualification

DSCR (Debt Service Coverage Ratio) for investment properties

These programs help luxury buyers and self-employed borrowers qualify without tax-return limitations.

Both are available.
Most borrowers choose between:

30-year fixed-rate loans, or

Adjustable-Rate Mortgages (ARMs) with initial fixed periods (5/6, 7/6, or 10/6 ARMs).
Interest-only options are also available for added payment flexibility.

You can use a Jumbo or Super-Jumbo Non-QM loan to finance:

Primary residences

Second homes or vacation properties

Investment properties

Luxury condos and high-rises (including some non-warrantable projects)

New construction or custom-built homes

Yes. Non-QM jumbo programs allow rental and investment property financing, often using DSCR (Debt Service Coverage Ratio) to qualify based on rental income potential, not personal income.

No. PMI is not required on Jumbo or Super-Jumbo Non-QM loans, even with down payments below 20%.
Instead, the lender’s risk is priced into the rate, which remains competitive for high-credit borrowers.

Rates are generally 0.5%–1.25% higher than standard conforming loans.
Your rate depends on loan size, down payment, credit score, and documentation type (bank statement, 1099, etc.).

Most Jumbo loans close within 25–40 days, depending on complexity and appraisal timing.
For Super-Jumbo loans over $3 million, expect extra underwriting review and additional documentation time.

Yes, you can refinance to:

Lower your rate or payment

Tap into equity through a cash-out refinance

Move from interest-only to fully amortizing terms

Transition into a traditional Jumbo loan if eligible

Access to high loan amounts beyond conventional limits

Flexible qualification (bank statements, assets, or business income)

No PMI

Interest-only and ARM options

Works for primary, secondary, and investment properties

Fast approvals with specialized lenders

Slightly higher rates than conforming loans

Larger down payments and reserves required

Limited secondary market liquidity (portfolio-held loans)

May require multiple appraisals for high-value homes