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90% Jumbo Loan

The Fixed Rate jumbo loan can be for 15 or 20 or 30 years.

This is for Texas only. This applies to purchases and refinances (cashout are not limited to 75% LTV)

The intererst rate stays the same during the 30 years of the loan. There is no prepayment penalty.

Max LoanToValue & Total-LTV
Residence TypeLoan AmountMax LTVMax TLTV
Single Family Home or Duplex$100,000 – $750,00090%90%
Single Family Home or Duplex$750,001 – $1M80%90%
Single Family Home or Duplex$1M – 1.5M75%90%
Single Family Home or Duplex$1.5M – 2M70%90%
2nd Home$100,000 – $650,00075%80%
2nd Home$650,001 – $1M70%80%
Condominium & triplex & quad & non owner occupied / investment$100,000 – $650,00075%80%

* declining housing markets have lower LTV & TLTV
** cashout loans have lower LTV & CLTV

Cosigner– is NOT permitted
Credit Scores
Max LTV/TLTV
FICOMax LTV / TLTV
74090%
72085%
68080%
66075%

– Loans over $900,000 require 720 credit score

Max Debt-to-Income Ratio
Max Debt-to-Income Ratio
Mac DTIMax LTV / TLTV
41%80+%
45%70%-80%
50%70%

(debts / gross income) *
* after expenses before taxes

Reserves6 months PITI for loan <= $1M
12 months PITI for loans > $1M
Appraisalsloans over $750k or “weak” appraisals to require two appraisals. This will cost approximately $500-$600 extra.
Seasoning6 months required
Purchase contributionsmax of 6% of lesser of sales price or appraised value
Bankruptcy7 year waiting since BK cleared
Foreclosure7 year waiting since BK cleared
Deed in Lieu of Foreclosure7 year waiting since BK cleared
Short Sale or Short Pay5-7 year waiting for short sale depending if any mortgage lates in last 12 months

For more information call 281-259-0400

What is a JUMBO loan? In Texas any 1st loan over $417,000 is a jumbo loan.

What credit scores are required for a JUMBO loan? There is a variety of jumbo lenders and they all have different rules. There are very few that will accept credit scores below 700.
Credit score 680-699 0.25% higher rate (max of 80% LTV) LB
Credit score 680-699 0.5% higher rate (max of 75% LTV) LB
One lender requires no mortgage lates in last 24 months.

What is LTV? LTV is the loan to appraised value ratio. For example, if the property appraises for $1M and the loan is $700,000 then the LTV is 70%.

What credit scores are required for better rates on a JUMBO loan? A credit score of 760+ gets you the best rate with a 70% or lower LTV.

Can I get a 90% JUMBO loan? Yes but rates are slightly higher for this loan…
0.50% higher rate for 85.001-90% LTV
0.25% higher rate for 80.001-85% LTV

What RESERVES are needed for a JUMBO loan? Each lender varies from 3-12 months.

What is considered RESERVES? Reserves are the number of months of PITIH (Principle, Interest, Taxes, Insurance, HOA dues) you have in liquid accounts after you pay your “cash to close” amount.

How much lower is an ARM than a fixed JUMBO loan? There are 3/1 & 5/1 & 7/1 & 10/1 ARMs. The rate is approximately cheaper by …
10/1 ARM 0.75%
7/1 ARM 1.1%
5/1 ARM 1.5%

What is special about a JUMBO loan appraisal? When you get into the bigger loan amounts, the appraisal is looked at very closely. If there is any doubt that the property has 20%-30% equity usually the lender is going to require that the appraisal is solid. With loans over $750,000 be prepared to pay for two appraisals. If there is some question if the property will not appraise for the required amount, then we recommend that you let us submit the loan with multiple lenders. This will cost you more in processing and appraisal fees but it will keep the time to closing shorter and it could save you a lot of money in interest.

How long does a Jumbo loan take? The normal time is 3-5 weeks. Some things like a title problem, or a borrower that is slow with delivering needed documents, or a appraisal problem can delay the closing for another 1-4 weeks.

Can I get a JUMBO cashout loan? Yes you can get up to $250,000 cashout, but there are LTV limits, only on single family home, and total loan limits:
LU 65% LTV $1M loan limit
LU 60% LTV $1.5M loan limit
LU 55% LTV $2.0M loan limit
LU 45% LTV $2.5M loan limit

Can I get an non-arm length Jumbo loan? This is really tough as the lenders find it hard to trust the interested parties. At this time we have no lenders willing to do this loan.

Can a first time buyer get a JUMBO loan? Yes but the loan amount is limited to $1M.

What special income rules exist on JUMBO loans? Again various lenders have different rules with jumbo loans.
LU 45% DTI on fixed Jumbo
LU 40% DTI on ARM Jumbo & use 7.0% to calculate

How is the credit score calculated? Each borrower usually has 3 credit scores (from Transunion, Equifax, Experian). Take the middle score from each borrower. Use the middle score from the borrower with the lowest credit score.

Can I average my credit scores from each agency? No underwriters do not allow averaging credit scores.

Can I get a long term lock? You can get a 15, 30, 45, or 60 day lock. Locks can be extended 7, 15, 21 or 30 days.

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