Jumbo Loan Limit in Texas for 2026

Texas is a little simpler than many other states when it comes to loan limits. In states like California and Colorado, the conforming loan limit can change from one county to another. In Texas, the same limit applies whether you are buying in San Antonio, Austin, Dallas, or another part of the state.

One thing that can be confusing is that the limit applies to the loan amount, not the purchase price of the home. So, a $900,000 home does not automatically mean you need a Texas jumbo loan. Your down payment can make a big difference.

The Federal Housing Finance Agency (FHFA) sets the conforming loan limits each year. For 2026, the baseline conforming loan limit is $832,750, which is $25,250 higher than the 2025 limit. Loans at or below this amount can generally be purchased by Fannie Mae or Freddie Mac. This is what makes them conforming loans.

Once the loan amount goes above the conforming limit, Fannie Mae and Freddie Mac will not purchase the loan. The lender may keep the loan or sell it to a private investor. This is where the term jumbo financing comes from. A jumbo loan is still a conventional mortgage. The difference is that it does not meet the standard conforming loan limits

Source: FHFA 2026 conforming loan limit values, announced November 25, 2025.

Why Texas has no high cost counties

FHFA allows higher loan limits in certain high cost counties. Generally, a county can qualify when 115% of the local median home value is higher than the standard conforming limit. For 2026, the median home value would need to be around $724,000 to reach that threshold. No Texas county meets that requirement.

Some individual neighborhoods in Texas have home values that are much higher. For example, areas such as Alamo Heights can have home values above that threshold. However, FHFA looks at larger county-level data rather than individual neighborhoods. That is why Texas uses the same conforming loan limit across the state

This is where the down payment becomes important. Remember, the jumbo limit is based on the loan amount, not the purchase price. The more you put down, the higher the purchase price can be while still keeping the loan within conforming limits.

For example, lets say you are buying a $900,000 home. With 10% down, your conventional loan amount would stay below the $832,750 conforming limit. With only 5% down, the loan exceeds would go above the limit and become a jumbo loan. Same house, but the down payment changes the type of loan you need.

That is why you should not automatically assume that an expensive home requires a jumbo loan. If you are close to the conforming loan limit, it is worth looking at your down payment and loan amount before making an offer.

In most of the San Antonio area, this may not come up very often. But in higher priced areas such as Alamo Heights and Olmos Park, jumbo loans are much more common. The same is true in other expensive Texas markets

Jumbo loans generally have stricter requirements than conforming loans because Fannie Mae and Freddie Mac are not purchasing the loan. Every lender has its own guidelines, but many jumbo programs look for similar requirements

Credit score

Our Texas jumbo loan programs start at a credit score of 680. However, having a higher credit score can help with pricing and approval. Some lenders offer better pricing at higher credit score levels, such as 720 or 740 and above. Lenders will look at your overall credit history, not just the score

Down payment

A 20% down payment is usually common with jumbo loans but its not always required. Some jumbo loans are placed at 10% down and usually without private mortgage insurance because the lender prices the extra risk into the interest rate. Whether it makes sense to put more money down depends on what you do with the cash.

Cash reserves

Cash reserves are one of the requirements that surprises buyers. Reserves are the money you still have available after closing. Lenders usually require you to have a certain number of months of mortgage payments available in your accounts. Six months of reserves is common for primary residence, but larger loan amounts can require more. For example, if you are buying a $1 million home with 20% down, you may need to have more than $40,000 left in reserves after your down payment and closing costs. Some retirement accounts may also be allowed to count towards reserves, but lenders usually give you credit for just a portion of those funds.

Debt-to-income ratio

Most lenders will look closely at your debt-to-income (DTI) ratio at 43% or below on jumbo mortgages, although some programs will allow you to go up to 50% if you have strong credit and significant reserves. Property taxes can also make a big difference when calculating your DTI so try our calculator before you shop

Income documentation

Jumbo loans usually require more financial documents than a standard loan. You may need to provide 2 years of tax returns, documents explaining large deposits or other items that show up in your accounts. If your tax returns do not show enough income to qualify, there may be other loan options worth looking at, including a bank statement loan or asset depletion program.

Not always. Jumbo interest rates can sometimes be the same or even lower than conforming loan rates. Rates can change from week to week, so there isnt always a clear difference between the two.

Jumbo loans do not have the same Fannie Mae or Freddie Mac loan level fees that apply to many conforming loans. Bank typically like jumbo borrowers because they often bring larger deposits and other banking business.

The best rates are generally available to borrowers with strong credit, low DTI and plenty of reserves. If your credit score is lower or your DTI is stretched, the jumbo rate you are offered may be higher than what you could receive with a conforming loan. This is why its so important to compare the available options instead of just assuming one loan type will have the best rate.

Property taxes reset when you buy

Even though Texas does not have state income tax, the property taxes can be significant, especially on expensive homes. For example, here are some 2025 property tax examples for a $1 million home in Bexar County:

Source: Old Republic Title, San Antonio Area 2025 Property Tax Rates.

The actual amount can vary depending on the property and exemptions. This is important because the new homeowner may not have the same tax situation as the previous owner. For example, a previous owner may have had a homestead exemption or other benefits that affect their tax bill. Your lender will use the estimated taxes for your new loan when qualifying you.

Home equity loans stop at 80%

In Texas, there are specific rules for home equity loans and cash out refinances on a homestead. Generally, the total amount of liens secured by the property cannot exceed 80% of the homes value. This applies even if the loan is not a jumbo loan.

A jumbo loan may be the right option for some but it is not the only option. One simple way to stay under the conforming limit is to make a larger down payment. There are also other financing structures that may help you avoid a jumbo first mortgage.

Split it with a purchase-money second

One option is to keep your first mortgage at the conforming loan limit and use a second mortgage for the rest of the amount. For example, on a $1.2 million purchase with a down payment of 20%, you could have a first mortgage around the conforming limit and use a second mortgage for the rest of the amount. The second mortgage will generally have a higher interest rate, so you need to compare the total cost of both options.

Texas also has specific rules regarding home equity loans and HELOCs, so you cant always use the same structure you may see advertised in another state.

Use your VA entitlement

For eligible veterans with full VA entitlement, there is no VA loan limit. This means a VA borrower may be able to finance a loan above the conventional limit, potentially with no down payment, as long as they qualify based on income, credit and other VA requirements. Borrowers with partial entitlement can still be subject to county based limits. For Texas veterans, this is one of the first options worth reviewing when financing a higher priced home.

Yes. Many jumbo lenders offer financing for primary residence, second homes, and investment properties. But requirements are usually stricter when the property is not your primary residence.

For example, a second home may require at least 15% down, while an investment property may require 20% or more. If you are buying an investment property, it may also be worth looking at a DSCR loan program. This program focuses primarily on the propertys rental income instead of entirely on your personal income.

It could increase a little. The loan limit is update each year by FHFA based on changes in home prices across the country.

FHFA sets next year's limit from the change in its national house price index, and three of the four quarters that count are already in, running about 2% higher. This should make the conforming loan limit for 2027 somewhere around $850,000.

The important thing to remember is that the Texas limit follows the national FHFA calculation. It is not based only on what happens to home prices in Texas.

If you are planning to close near the end of 2026 or early 2027 and your loan amount is close to the conforming limit, it may make sense to review the new limit once FHFA releases the official number