Jumbo Non-QM Loans in the Texas Hill Country

In Llano County, the 2026 conforming loan limit for a one-unit property is $832,750. Any mortgage larger than this figure is treated as a jumbo loan.

The 2026 limits below apply in Llano, Gillespie, Burnet, Blanco, and Kerr counties:

• Single-unit property: $832,750

• Two-unit property: $1,066,250

• Three-unit property: $1,288,800

• Four-unit property: $1,601,750

Waterfront and ranch properties in Horseshoe Bay, Fredericksburg, Spicewood, and Kingsland regularly exceed these thresholds, so a jumbo mortgage is the usual financing for higher-priced Hill Country homes.

Qualified borrowers can obtain jumbo loans in Texas of several million dollars. The approved amount depends on credit score, loan-to-value ratio, reserves, and whether the home is a primary residence or a second home. Higher credit scores and larger reserves usually bring a lower jumbo rate on a Hill Country purchase.

No. Borrowers with scores of 750 or above generally earn the strongest jumbo pricing. A borrower with a lower score may still qualify when the file includes a larger down payment, substantial liquid assets, or other compensating strengths.

Yes. Jumbo Non-QM programs for Hill Country buyers include bank statement loans and asset depletion loans. Business owners and retirees buying in Horseshoe Bay or Fredericksburg may qualify without W-2s or traditional tax returns. Lenders offering jumbo bank statement loans in Texas calculate income from 12 or 24 months of deposits, and loan amounts reach $7M.

Jumbo lenders accept single-family homes, warrantable and non-warrantable condos, townhomes, and 2–4 unit properties. We arrange jumbo financing for a Lake LBJ waterfront home, a golf residence in Horseshoe Bay, a home on acreage near Fredericksburg, or a Lake Travis property in Spicewood. Lenders differ on how much acreage they will finance, so we confirm the property with the lender before the appraisal is ordered. The lender also needs to know whether the purchase is a second home or an investment property, because occupancy affects pricing and down payment.

Jumbo rates in the Hill Country are frequently in line with conventional rates and at times below them. Pricing varies by lender, so Texas jumbo mortgage rates should be compared across several lenders for the same file.

It can be, and the answer depends on how long you expect to hold the loan. With a 5/1 or 7/1 jumbo ARM, the rate is fixed for five or seven years and often begins below a 30-year fixed rate. The lower early payment is one reason ARMs have returned among jumbo borrowers. Buyers who expect to pay off a second-home mortgage early are common candidates. An owner with a shorter horizon should still weigh whether an ARM makes sense when a sale is planned.

Texas law limits a cash-out refinance on a homestead to 80% of the home's value, and lenders may set lower limits on very large loans. Owners in Horseshoe Bay, Marble Falls, and Kerrville can draw on equity through a jumbo cash-out refinance. The new loan pays off the existing mortgage and delivers the remaining proceeds in cash. The rules are specific to this state, and jumbo cash-out refinances in Texas follow the home equity provisions of the Texas Constitution. Hill Country homeowners with VA entitlement may also consider a VA cash-out refinance or a VA jumbo cash-out refinance, and neither carries monthly mortgage insurance.

Eligible veterans and service members, including military retirees settling in Kerrville and the Highland Lakes, may be able to use a VA loan above the conventional limit. Qualified borrowers may buy a higher-priced Hill Country residence with $0 down and no monthly PMI. With full entitlement, VA jumbo loans are not capped at the county loan limit.

Yes. A jumbo refinance can lower the rate, replace an ARM with a fixed loan, or draw equity from a high-value property. Owners of lake homes in Llano and Burnet counties may also refinance to restructure debt or change the loan term.

One bank's denial usually reflects its own overlays and says little about whether the borrower can qualify elsewhere. Wholesale jumbo lenders differ in how they treat bonus income, RSUs, ranch and business income, and large asset balances. As a broker, we can move the file to a lender whose guidelines match it. Buyers under contract still have several paths when a jumbo loan is denied in Texas.

Jumbo lenders generally require 10% to 20% down on a primary residence in the Hill Country. Second homes and investment properties usually call for more, and many Highland Lakes purchases fall in those categories. The smallest down payments go to borrowers with the strongest credit and reserves, including those using 10% down jumbo loans in Texas. Requirements differ by program, and jumbo and Non-QM mortgage down payments depend on credit, occupancy, and loan size.