Jumbo
What is a jumbo loan and when do you need one?
A jumbo loan is a mortgage larger than the conforming loan limit set each year for your county, which means it cannot be sold to Fannie Mae or Freddie Mac. Underwriting is stricter, reserves matter more, and pricing varies a lot between lenders, which is exactly why shopping it matters.
Built for bigger numbers
Out in Dripping Springs and Driftwood, jumbo comes up constantly. Once a purchase runs past the conforming limit for the county, the file moves into a different world. More reserves, tighter documentation, more scrutiny on how your income is actually structured.
Jumbo is also where lender-to-lender pricing spreads get widest. Two wholesale lenders can look at the identical borrower and land meaningfully far apart, because each one has its own appetite for that loan size, that property type, and that income profile. Shopping is not a nice-to-have here.
If your income is self-employed or asset-heavy rather than a straightforward salary, that is not a problem for jumbo. It just changes which lenders on the panel are worth approaching.
Quick facts
- Down payment
- Typically 10% to 20%, varies by lender and file
- Credit guidelines
- Generally 700+
- Typical timeline
- Typically 30 to 45 days, longer if two appraisals are required
- Occupancy
- Primary, second home, or investment
What it usually takes
- Stronger credit and meaningful cash reserves after closing
- Full documentation of income, or a bank statement structure if you are self-employed
- A larger down payment than conforming, though not always the 20 percent people assume
- An appraisal that supports the number, sometimes two on larger files
Guidelines vary by lender, and I shop across more than 40 of them. Missing one of these is a reason to talk, not a reason to assume the answer is no.
This is not a commitment to lend. All loans are subject to credit approval, income and property verification. Rates, terms, and programs are subject to change without notice. Nook Lending is powered by MPA Home Loans. Jennifer Ferrara, Loan Officer, NMLS #2781982. MPA Home Loans NMLS #2778343. Equal Housing Opportunity.
Jennifer Ferrara
Loan Officer · NMLS #2781982
Fourteen years navigating real estate deals taught me to listen before I recommend anything. Tell me what you're working with, and let's talk it through.
Where I Lend
Licensed throughout Texas, and I speak Spanish. Don't see your town? Ask, I am probably still in reach.
Cities I specialize in:
Kyle, TX · Buda, TX · San Marcos, TX · South Austin · Dripping Springs, TX · Driftwood, TX
See all service areasIs this loan right for you?
This fits if
Buyers in the higher price bands, often self-employed professionals and move-up buyers.
Look elsewhere first if
If the purchase price is under the conforming limit for the county, Conventional or FHA will be simpler and cheaper to close.
Pros
- Finances above the conforming loan limit
- Works with self-employed and asset-heavy income
- Wide lender panel means real rate competition
Cons
- Larger cash reserves required after closing
- Stricter documentation than a conforming loan
- Pricing varies significantly from lender to lender
Questions people actually ask
About Jumbo
For 2026, the conforming loan limit for a one-unit home is $832,750 across Travis, Williamson, Hays, Bastrop, and Caldwell counties, per the Federal Housing Finance Agency's published limits for the Austin-Round Rock-San Marcos metro. Anything above that in these counties is jumbo. These limits update every year, so I will confirm the current number before you write an offer rather than let you work off a figure that could already be outdated.
Other options
Worth comparing against
Very few files have exactly one right answer. These are the ones that most often come up alongside this.
First-Time Homebuyer
Anyone buying their first home, or buying again after several years away from ownership.
Conventional
Buyers with solid credit who want the lowest long-run cost and want mortgage insurance to eventually go away.
FHA
Buyers rebuilding credit, carrying more debt than conventional allows, or working with a small down payment.
Self-Employed / Bank Statement
1099 contractors, business owners, and anyone whose tax return understates what they really earn.
Where this fits
Reviewed by Jennifer Ferrara, NMLS #2781982 · Last updated 2026-08-11
Wondering if Jumbo is right for you?
Send me the specifics and I will tell you what actually fits. If a different program serves you better, that is what I will say.