Get a Jumbo Mortgage Loan in El Paso, TX and New Mexico
A jumbo mortgage exceeds the loan limits that are set by the Federal Housing Finance Agency (FHFA). Jumbo mortgage loans are usually used to finance properties that are too expensive for a conventional mortgage loan. At Rocky Mountain Mortgage Co., we are a home mortgage lender specializing in customized, carefully tailored mortgage solutions for homeowners in Texas and New Mexico. Call now to find out if you qualify for a jumbo loan mortgage in El Paso, TX, or New Mexico.
What Is a Jumbo Mortgage Loan?
A jumbo loan is like a traditional mortgage loan, except it is used to finance properties that exceed local conforming loan limits. A jumbo loan is riskier for mortgage lenders because it can’t be guaranteed by Fannie Mae and Freddie Mac. The mortgage lender is not protected from losses if the borrower defaults and the loan cannot be resold.
Who Should Consider a Jumbo Mortgage Loan?
A jumbo loan can be used to purchase a primary residence, vacation home, or investment property. You should consider one if you have substantial income, strong credit, ample assets, and a low debt-to-income ratio. You might need to get a jumbo loan if:
l You are purchasing a high-value property
l You are looking for a home in a high-cost area
l You are buying a second home or vacation property
l You are buying a luxury home
l You are buying an investment property
lYou are interested in financing multiple properties
Jumbo Loan Mortgage Rates
Jumbo loans are similar to traditional or conventional mortgage loans, but they are much larger. They are available with fixed interest rates or adjustable rates and can be 30-year loans or shorter-term loans. Mortgage interest rates for jumbo loans are usually higher than those of conforming mortgages.
Understanding Jumbo Loan Limits
The maximum amount for a conforming loan in 2025 is $806,500. While the amount or limit for a jumbo loan varies throughout the U.S., it is typically a loan of over $806,500. Some lenders offer loans of up to $3-5 million or even higher amounts. There is no strict limit for jumbo loans. The ceiling of conforming loans may be called a limit, but they are really just starting points for a jumbo loan.
How to Qualify for a Jumbo Loan
Because your mortgage lender will impose stricter requirements for a jumbo loan than a conforming mortgage loan, it may be harder to qualify for one. You can use our mortgage calculator for jumbo loans to get an estimate of your monthly mortgage payment and see if it is within your abilities. You must meet several stringent qualifications:
l Income – In general, your income should be high and you should have a low debt-to-income ratio.
l Credit Score – The minimum credit score is typically 740. Active military veterans may qualify with a lower credit score.
l Cash Reserves – You must have sufficient cash reserves on hand to make a down payment of 10-20%.
l Down Payment Requirements – You may need to make a 10-20% down payment.
l Debt-to-Income Ratio – Your debt-to-income ratio should be less than ⅓. Some lenders have a hard cap of 43% DTI.
l Asset Documentation – You must have sufficient cash reserves or liquid assets to cover between six to 12 months of mortgage payments.
How to Get a Jumbo Mortgage Loan: the Loan Application Process
It is typically harder to get a jumbo loan, as they have stricter borrowing criteria and you may need to have a higher credit score, bigger assets, a higher income level, or a bigger down payment. Before applying, gather all financial documentation and do a hard audit of your finances. You may want to work with a financial advisor or attorney to mitigate your risk. The application process is generally similar to that of a traditional loan:
l Gather documents to provide the lender with a comprehensive financial profile
l Compare loan options, terms, and mortgage rates between lenders
l Get pre-approved
l Submit an application with your preferred lender
l The lender will fulfill the underwriting process and do an in-depth verification of your finances
l Close on the loan by finalizing terms and signing paperwork
Benefits and Drawbacks of Jumbo Loans
A jumbo loan isn’t right for everyone. It’s important to carefully consider the advantages and disadvantages of jumbo loans before applying:
Benefits
- Access to higher purchase limits
- Ability to buy a high-priced ‘dream home’ or vacation home
- Competitive interest rates
- The first $1,149,825 of your mortgage may be tax-deductible
- Many types of loans are available, and you can choose your term and whether you want adjustable or fixed rates
Drawbacks
- Access to higher purchase limits
- Ability to buy a high-priced ‘dream home’ or vacation home
- Competitive interest rates
- The first $1,149,825 of your mortgage may be tax-deductible
- Many types of loans are available, and you can choose your term and whether you want adjustable or fixed rates
Find Out if You Qualify for a Jumbo Mortgage Loan
If you’re ready to purchase your dream home but it does not qualify for a traditional mortgage loan or conforming loan, you may need a jumbo mortgage loan. Call us or contact us online at Rocky Mountain Mortgage Co. Our team of mortgage professionals can help you explore your options, determine if you qualify, and help you with the application process for a jumbo loan in El Paso, TX, or New Mexico.
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We have helped more than 26,000 El Paso families realize their dream of HOMEOWNERSHIP.
We have helped more than 26,000 El Paso families realize their dream of HOME OWNERSHIP.