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By Shian Munro, Realtor® | Coldwell Banker Realty
If you’re buying a home in Houston between $500,000 and $1.5 million, there’s a good chance you’ll come across the term jumbo loan.
Many buyers don’t realise they’ve crossed into jumbo lending until they speak with a lender. That’s important because qualifying for a jumbo loan is different from qualifying for a standard mortgage.
The biggest surprise?
It usually isn’t your income that causes problems.
It’s your cash reserves.
What Is a Jumbo Loan?
For 2026, the conforming loan limit in Harris County is $832,750 for a single-family home.
If you borrow more than that, you’ll normally need a jumbo loan.
Houston does not qualify for the higher loan limits available in some expensive housing markets such as parts of California or New York. Those higher limits only apply in designated high-cost counties.
That means a buyer financing $900,000 on a Houston home is generally applying for jumbo financing.
More buyers are finding themselves in this position because Houston’s luxury market continues to perform well. According to the Houston Association of REALTORS®, sales of homes priced above $1 million increased by 10.1% year over year in May 2026.
Why Cash Reserves Matter So Much
Many buyers believe a high income is the hardest part of qualifying.
In reality, cash reserves often become the biggest hurdle.
Lenders want to know you could continue making mortgage payments even if your circumstances changed after closing.
Typical reserve requirements often look like this:
• Around six months of mortgage payments for loans close to $1 million.
• Around twelve months for loans near $2 million.
• Up to twenty-four months or more for larger luxury loans.
Those reserves may also include any other properties you own.
If you’re keeping your current home while buying in Houston, your lender may include both properties when calculating your reserve requirements.
That’s one reason a buyer with an excellent salary can still struggle to qualify.
Income may support the payment, but available cash after closing may not meet the lender’s requirements.
Every Buyer’s Situation Is Different
Jumbo lending isn’t one-size-fits-all.
Many of my clients have more complex financial situations than a standard mortgage application.
Some work in Houston’s energy industry and receive a large part of their income through bonuses or stock awards.
Others are relocating from overseas and plan to use funds from the sale of a home in another country.
Each situation needs careful planning.
If bonus or commission income makes up a significant part of your earnings, many lenders will ask for two years of income history before including it in your qualification.
International buyers also need to show a clear paper trail when transferring funds into the United States. Depending on the lender, additional documentation may also be required if you haven’t yet built a US credit history.
Starting those conversations early can prevent unnecessary delays later.
Don’t Assume You Need 20% Down
Jumbo loans have changed over the last few years.
While many buyers still choose to put down 20%, some lenders now offer jumbo programmes with down payments as low as 5% for well-qualified borrowers.
Lower down payments don’t automatically make the loan a better option.
Reserve requirements, interest rates and overall borrowing costs still need careful comparison before making a decision.
A good lender will help you understand which programme works best for your circumstances.
Plan Before You Start House Hunting
One piece of advice I give every buyer is simple.
Speak with your lender before you fall in love with a home.
Don’t just ask how much you can borrow.
Ask how much cash you’ll need after closing.
If you’re relocating from another state or another country, discuss your down payment, existing property, overseas funds and bonus income before you begin viewing homes.
Those conversations are much easier before you’re under contract than halfway through your financing approval.
My Advice
Buying in Houston’s luxury market isn’t simply about qualifying for a loan.
It’s about understanding the whole financial picture before you begin.
The right lender, realistic budgeting and good preparation can make the buying process much smoother.
If you’re considering a purchase near or above the jumbo loan limit, I’d be delighted to help you understand your financing options, compare neighbourhoods and build a strategy that fits your goals before you start house hunting.
Frequently Asked Questions
What is the 2026 conforming loan limit in Harris County?
For a single-family home, the conforming loan limit is $832,750. Loans above that amount generally require jumbo financing.
Does Houston qualify for higher high-cost loan limits?
No. Houston does not fall within the high-cost county limits used in certain parts of California, New York and other expensive housing markets.
How much cash reserve do I need for a jumbo loan?
It depends on the lender and the size of the loan. Many lenders require between six and twelve months of mortgage payments in reserve, while larger loans may require more.
Can bonus income count towards my mortgage qualification?
Yes. Many lenders will consider bonus or commission income, although they often require a two-year history before including it in your calculations.
Can I use money from selling my UK home as my down payment?
Often, yes. You’ll usually need clear documentation showing where the money came from and how it was transferred into the United States. Requirements vary between lenders.
Do all jumbo loans require a 20% down payment?
No. Some lenders offer jumbo programmes with lower down payments for well-qualified buyers, although the overall costs and reserve requirements should always be compared carefully.
About Shian Munro
I’m Shian Munro, a British Realtor® with Coldwell Banker Realty based in Houston, Texas. Having relocated internationally myself, I understand that moving home is about much more than buying a property.
I specialise in relocation and luxury homes, helping clients moving locally, nationally and internationally make informed decisions with confidence.
A global perspective, tailored locally.
