As the name suggests, jumbo loans cover larger-than-normal purchases. With government-backed mortgages and conventional loans that conform to federal guidelines, borrowers are limited to Dallas homes within a certain price point. Jumbo --or non-conforming -- mortgages come with no such limitation.

The maximum loan amount for a jumbo mortgage varies by lender, which means shopping around is a must, but many people in north Texas opt for this form of financing when the properties they want to buy cost more than the current limits for conforming loans. Jumbo mortgages are commonly used for high-end homes and sizeable properties, but for those who qualify, almost any residential real estate purchase is possible with a non-conforming mortgage.

Speaking of qualifying, jumbo mortgages have stricter requirements than other loan programs. Borrowers need a relatively high income, a solid financial history, a high credit score and enough cash reserves to cover several months of mortgage payments to be eligible. And, of course, mortgage lenders require Dallas home buyers to put money down – and for well-qualified borrowers, the down payment could be as low as five percent.

Interest rates for non-conforming loans fluctuate, and while they are often higher than the conforming mortgage rate, the reverse can also be true. Many mortgage lenders offer competitive rates and favorable terms, and PRMI Dallas can help you track down the best option. If you’d like to finance a high-value home or expensive residential property in north Texas, our mortgage professionals can match you with a jumbo loan program that meets your needs. For more information, contact us today!