If you have your eye on a piece of prime property in the McKinney, Texas, area, a Jumbo Loan might be for you. The home loan limit for obtaining a conventional mortgage in Texas is $647,200 in 2022, so if you are looking at a property that is priced higher than this, you may want to apply for a Jumbo Loan with the mortgage lenders at PRMI McKinney.
To qualify for a Jumbo Loan, you need a good credit score — usually in the 700s. Additionally, your debt-to-income ratio must be lower than what is acceptable for a conventional mortgage as well. Conventional mortgage DTI limits are usually 45%-50%, but for a Jumbo Loan, the limits are lower — usually around 43%. Depending on your credit score and DTI, you may need to put down anywhere from 10% to 30% of the purchase price.
Previously, homebuyers who could not qualify for a Jumbo Loan may have looked to finance their purchase with a piggyback loan. Very generally, these types of home loans consist of two separate loans. But Jumbo Loan requirements were created for a reason, and piggyback loans are rare in today’s economy.
However, if you have the means to purchase a grand home in McKinney, Texas, a Jumbo Loan is the best way to do it. The mortgage lenders at PRMI McKinney can help you find out if you qualify for a Jumbo Loan — call today.
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