Jumbo Loans in Austin, Texas
Financing for Austin's luxury real estate market. Loan amounts from $832,751 to $10,000,000+ with competitive rates, flexible terms, and white-glove service for high-value properties.
What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In Travis County (Austin), the 2025 conforming limit is $832,750. Any loan above that amount is classified as a jumbo loan and cannot be purchased by Fannie Mae or Freddie Mac.
Because jumbo loans are not backed by government-sponsored enterprises, they are held on the lender's own books (portfolio loans) or sold to private investors. This means qualification requirements are stricter, but it also means more flexibility in underwriting for borrowers with complex financial profiles — high-net-worth individuals, business owners, and professionals with significant assets.
Austin's Luxury Market
Austin's premium neighborhoods — Westlake Hills, Barton Creek, Tarrytown, Rob Roy, Cat Mountain, Spanish Oaks, and the lakefront communities around Lake Austin and Lake Travis — frequently feature homes above the conforming limit. With the median price in these areas often exceeding $1.5M, jumbo financing is essential for buyers in Austin's upper market.
Jumbo Loan Options
Fixed-Rate Jumbo
Lock in a rate for 15, 20, 25, or 30 years. Ideal for buyers planning to stay long-term. Rates are competitive with conforming loans for well-qualified borrowers.
Adjustable-Rate (ARM) Jumbo
5/1, 7/1, and 10/1 ARM options offer lower initial rates for buyers who plan to sell or refinance within 5-10 years. Popular with executives and relocating professionals.
Interest-Only Jumbo
Pay only interest for the first 5-10 years, maximizing cash flow. Principal payments begin after the IO period. Ideal for high-income borrowers and investors.
Portfolio / Non-QM Jumbo
For borrowers with complex income (self-employed, asset-based), portfolio lenders offer flexible underwriting. Bank statement, asset depletion, and DSCR options available for jumbo amounts.
Jumbo Loan Requirements
Credit Score
Most jumbo programs require a minimum credit score of 700, with the best pricing at 740+. Some portfolio options are available down to 680 with compensating factors.
Down Payment
15-20% is standard for jumbo loans. Some programs offer 10% down for loan amounts up to $1.5M. Higher loan amounts may require 20-25% or more. For investment properties, expect 25-30% down.
Reserves
Jumbo lenders typically require 6-18 months of mortgage payments in liquid assets (cash, stocks, retirement accounts). Higher loan amounts and investment properties require more reserves.
Debt-to-Income Ratio
Most jumbo programs cap DTI at 43%, though portfolio lenders may flex to 50% with strong compensating factors like high reserves, significant assets, or a large down payment.
Jumbo Loan FAQ
Jumbo loans in Austin begin at $832,751 — one dollar above the 2025 conforming limit for Travis County. There is no upper cap. We handle jumbo loans from $833,000 to $5,000,000+ for luxury properties across Austin's premium neighborhoods.
Most jumbo lenders require 700+, with the best rates at 740+. Some portfolio lenders work with scores as low as 680 depending on down payment, reserves, and overall financial profile.
Typically 15-20%. Some programs offer 10% down for loans up to $1.5M. Requirements increase for higher amounts and investment properties. Strong reserves can sometimes offset lower down payments.
Jumbo rates have become very competitive. Today they are often within 0.125-0.25% of conforming rates, and sometimes lower. Your rate depends on credit score, down payment, loan amount, and the specific program.
Yes. Jumbo financing is available for investment properties, typically requiring 25-30% down and 12-18 months of reserves. Rental income and DSCR options can help qualify.
Explore Other Loan Programs
Helpful articles: Austin Housing Market 2025 · How Much House Can I Afford? · Fixed vs. Adjustable Rates
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