If you’re looking to buy a luxury custom home in Houston with a mortgage, you might have noticed that the process is slightly different than buying a conventional home.

Mortgages on homes priced higher than Fannie Mae’s and Freddie Mac’s conforming loan limit of $424,100 are considered “jumbo loans.” While the qualification standards tend to be higher than conventional loans, jumbo loans offer other benefits to well-qualified buyers such as lower interest rates.


Time Frame

It’s important to note that the process of qualifying for and obtaining a jumbo loan tends to take longer than conventional loans. Please allow several months to complete the process. You’ll need to qualify for the loan before you can begin shopping for or building a home.



To qualify for a jumbo loan, buyers typically need a higher credit score, often 700 or above. Banks will want to see a steady employment history of at least two years. Be prepared to verify your employment for the underwriter.

Jumbo loan borrowers should be prepared to provide a down payment of around 10%, although some lenders will go lower depending on your credit score.



Although they are harder to get, jumbo loans provide some nice perks to borrowers. On average, jumbo loans tend to have lower interest rates than conventional loans. In addition, some lenders are willing to waive private mortgage insurance (PMI) to well-qualified buyers, which could reduce your monthly payment.




When you are ready to close on your luxury custom home in Houston with a Jumbo loan, be prepared to pay a little more in closing costs. In addition, the closing process can take a longer than conventional closings.

All in all, most borrowers find that the benefits outweigh the drawbacks when using jumbo loans to finance luxury custom homes in Houston. If you would like someone to answer any questions you might have about luxury home financing or point you to some reputable lenders, please email bryan@refinedcustombuilders.com or call/text Bryan at 713.851.4698.


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