Are you eyeing a higher‑priced home in Keller and wondering if your mortgage will be considered jumbo? You are not alone. Many North Texas buyers weigh luxury features against financing rules and timing. In this guide, you will learn exactly what counts as a jumbo loan in 2024, how lenders evaluate these loans, what to expect in costs and timelines, and smart ways to prepare your file. Let’s dive in.
What counts as a jumbo loan in 2024
A jumbo mortgage is any loan amount that exceeds the conforming loan limits set by the Federal Housing Finance Agency. For 2024, the baseline single‑family conforming limit is $766,550. If your financed amount is above that limit, your loan is considered jumbo.
To determine whether you will need a jumbo, use this simple equation:
- Loan amount = Purchase price − Down payment
- If the loan amount is more than $766,550, it is a jumbo loan in most counties.
Here are two quick Keller‑area examples:
- Example A: $900,000 purchase with 20% down ($180,000). Loan = $720,000. This fits within the conforming limit.
- Example B: $975,000 purchase with 20% down ($195,000). Loan = $780,000. This exceeds the conforming limit, so it is jumbo.
Keller market context
Many homes in Keller and wider Tarrant County are priced so that a standard down payment keeps the loan amount within conforming limits. That said, luxury properties, larger acreage, and new high‑end construction can push the financed amount above $766,550 even with a healthy down payment. Because local pricing and inventory shift, it helps to run the math for each property before you write an offer.
Jumbo underwriting basics
Jumbo loans do not follow Fannie Mae or Freddie Mac standards, so lenders set their own guidelines. Underwriting is usually more detailed than for conforming loans.
Credit score expectations
Most lenders want stronger credit for jumbos. While minimums vary, you will often see preferred score ranges around 700 to 740+ for the best terms.
Down payment and equity
Expect higher equity requirements. Many jumbo programs call for 10–20% minimum down, and 20% or more is common for competitive pricing. Private mortgage insurance is less common on jumbos, so lenders rely on borrower equity and overall profile for risk management.
Debt‑to‑income ratio
Lenders often look for lower DTI ratios than on conforming loans. Many programs target 43% or less, and some prefer tighter ratios depending on your reserves and credit.
Cash reserves
Jumbo loans frequently require seasoned reserves after closing. Plan for anywhere from 6 to 24 months of total housing payments in reserve based on loan size, profile, and property type.
Documentation standards
Be ready for full documentation: recent pay stubs, W‑2s or 1099s, tax returns, and bank or investment statements. If you are self‑employed or have complex income, non‑QM or bank‑statement programs may be available, typically with stricter screening or higher pricing.
Appraisals and property type
Higher‑value homes often face closer valuation review. Your lender may require additional comparable sales, an appraisal review, or even a second appraisal. Unique properties and large acreage can add complexity, so allow time for valuation.
Rates and loan types
Jumbo rates have historically been higher than conforming, but they can be competitive depending on the lender, your credit, and the loan structure. You can choose from fixed‑rate terms, ARMs, portfolio options, and in select cases, interest‑only structures. Pricing varies by lender.
Costs and timelines to expect
Closing timeline
Many jumbo purchases close in 30 to 45 days, similar to conforming loans. Complex properties, added documentation, or a second appraisal can extend timelines. Build a cushion into your contract dates.
Upfront and ongoing costs
- Larger down payment: Commonly 10–20% or more for best pricing.
- Appraisal fees: Higher‑value homes may have higher appraisal costs, and some loans require a second appraisal.
- Closing costs: Origination, title, escrow, recording, and lender fees typically range from 2–5% of the loan amount.
- Rate locks: Standard lock periods run 30–60 days. Extended locks or float‑down options can carry extra cost.
- Mortgage insurance: PMI is less common on jumbos, so lenders build protection through equity requirements or pricing.
Texas and Tarrant County specifics
- Property taxes: Texas has no state income tax, so property taxes are a major ongoing expense. Use your estimated purchase price and local taxing rates to model your monthly payment accurately.
- Title and closing: Texas commonly closes through title companies. Who pays which fees can be negotiated and varies by local custom.
- Homestead and exemptions: After closing on a primary residence, you may qualify for homestead exemptions that can reduce taxable value. Review deadlines and eligibility with the Tarrant Appraisal District.
Strategies to right‑size your financing
If you prefer to avoid a jumbo, you can:
- Increase your down payment to bring the loan amount at or below $766,550.
- Target a lower purchase price or negotiate a lower contract price.
- Add a qualified co‑borrower to strengthen income or asset positions, if appropriate for your situation.
A jumbo can still be the right choice if you want a higher‑priced home and have a strong profile with solid reserves. The key is aligning the property and loan structure with your long‑term plan.
Alternatives if standard jumbo is not a fit
- Portfolio loans: Banks hold these loans on their balance sheets and can customize guidelines. Terms and pricing vary.
- Non‑QM or bank‑statement programs: Useful for self‑employed buyers or complex income streams. Expect tighter screening and potentially higher rates.
- First‑and‑second combinations: Some buyers pair a conforming first mortgage with a HELOC or second lien. This can help keep the first loan conforming, but total cost and complexity may be higher.
Keller jumbo checklist
Use this quick plan to prepare a strong file and save time during contract:
- Confirm jumbo status
- Check the current FHFA conforming limit and estimate your loan amount: purchase price − down payment.
- If the loan amount exceeds $766,550, prepare for jumbo requirements.
- Get preapproved with a jumbo lender
- Ask about minimum credit score, down payment, reserve requirements, and lock options.
- Request sample scenarios for fixed and ARM structures to compare payment and risk.
- Gather documentation
- Two years of tax returns, W‑2s or 1099s, and recent pay stubs.
- Asset statements for checking, savings, brokerage, and retirement accounts.
- Letters of explanation for large deposits or recent credit events.
- For self‑employed buyers: business tax returns and profit and loss statements, or bank‑statement program guidelines if applicable.
- Model cash needed
- Add up down payment, closing costs, prepaid items, and required reserves. This gives you a realistic total cash picture before you go under contract.
- Account for local costs
- Estimate property taxes, HOA dues, and any special district assessments if applicable. Include these in your monthly payment and reserve planning.
Work with the right lending team
Jumbo products and guidelines vary widely across national banks, regional Texas banks, credit unions, and mortgage brokers. You can improve both pricing and certainty by comparing multiple quotes and asking direct questions about overlays, reserves, appraisal requirements, and lock policies. A team experienced with higher‑value Keller transactions can help you structure the offer, contract dates, and financing terms for a smoother closing.
When you are ready to explore properties or refine your financing plan, a consultative approach makes a measurable difference. Connect with a local advisor who understands luxury inventory, valuation nuances, and the timing required for jumbo underwriting.
Ready to map out a clear path to your next home in Keller? Request a Private Consultation with Pantuso Properties for guidance tailored to your goals and timeline.
FAQs
Do I need a jumbo loan to buy in Keller?
- You need a jumbo if your loan amount exceeds the 2024 conforming limit of $766,550. Calculate loan amount as purchase price minus down payment.
Are jumbo mortgage rates much higher than conforming?
- Not always. Rates vary by lender, credit score, loan structure, and reserves. In many cases, jumbo pricing is competitive.
How much down payment do I need for a jumbo?
- Many programs require 10–20% down, and 20% or more is common for stronger pricing and terms.
What credit score and reserves do lenders prefer?
- Many lenders target scores around 700 to 740+ and require 6 to 24 months of reserves depending on your profile and loan size.
Can I get a jumbo loan if I am self‑employed?
- Yes. You can use full documentation, or consider bank‑statement or non‑QM programs. Expect stricter review and potentially higher pricing.
Are jumbo loans available from local DFW banks and brokers?
- Yes. Many national, regional, and local lenders in the Dallas–Fort Worth area offer jumbo and portfolio products. Compare quotes and guidelines before you commit.
