Choosing Loans for Upscale Richardson Purchases

Shopping for a higher priced home in Richardson and not sure which loan fits best? You are not alone. Financing on upscale purchases looks different from standard deals, and the details can make or break your offer. In this guide, you will learn how 2025 loan limits work, when jumbo loans make sense, what lenders expect on larger files, how local taxes affect your budget, and practical strategies to win the right home. Let’s dive in.

Richardson loan limits and costs

What counts as jumbo

• The 2025 conforming loan limit is $806,500 for one‑unit homes in Dallas County. Loans at or below this amount can follow conforming guidelines, subject to underwriting. See the official announcement from the Federal Housing Finance Agency.
• Any loan above this limit is considered a jumbo and follows different investor rules, pricing, and documentation. Learn what a jumbo loan means from Investopedia’s overview.
• FHA caps are lower. For 2025, Dallas County’s FHA limit for a single‑family home is $563,500, according to this county limits summary. If you plan to use FHA, confirm the current limit before you shop.
• Remember, loan size depends on your down payment. A $900,000 purchase with a $120,000 down payment creates a $780,000 loan, which can still be conforming.

Taxes and carrying costs

• Texas has no state income tax, but local property taxes are significant. The City of Richardson shows about $0.54218 per $100 valuation for the city portion. Review the city’s breakdown on the Property Tax Information page.
• Dallas County’s portion was $0.215500 per $100 for the referenced tax year. You can view adopted rates by entity on the Dallas County Tax Office page.
• Add homeowner insurance and any HOA dues to see your full monthly carrying cost.

Best loan options for upscale buys

Conforming conventional

• If your desired loan amount is at or under $806,500, a conforming conventional loan usually offers broad program choices and competitive pricing. Start here when your down payment can keep you inside the limit. Check the latest limit with the FHFA.

Jumbo loans

• Use a jumbo when your loan exceeds the conforming cap. Expect stronger credit standards, larger down payments, and documented reserves. Get a quick definition and context from Investopedia.

Portfolio and non‑QM

• Portfolio loans are held by community or private banks and can fit unique properties or complex income.
• Non‑QM and bank‑statement loans can work for self‑employed buyers or those with substantial assets but nontraditional income. Compare costs and terms carefully. See an overview of non‑QM options from Bankrate.

Bridge loans

• A short‑term bridge loan can help you buy before you sell, which can strengthen your offer. These loans carry higher rates and fees, so weigh the benefits against the risk if your current home takes longer to sell. Learn the basics from NerdWallet.

Renovation and HELOCs

• For homes that need work, renovation financing or a HELOC can fund improvements. Construction‑to‑permanent loans may suit major projects. Lenders will require clear scopes, budgets, and inspections.

Cash or combo financing

• A large cash infusion or an all‑cash offer can help you stand out. You can also combine cash with a smaller loan to stay at or under the conforming limit.

What lenders require on larger loans

Credit, DTI, reserves

• Jumbo and portfolio lenders generally look for higher credit scores and lower debt‑to‑income ratios. Many require 6 to 12 months or more of reserves. Fannie Mae also sets reserve rules in many scenarios. Review reserve expectations in the Fannie Mae Selling Guide.

Down payment and PMI

• Conforming loans can allow lower down payments, but upscale purchases often call for 20 percent down to avoid PMI and to secure stronger pricing. Jumbo lenders may require more to reach their best terms.

Appraisals on luxury homes

• Unique or higher priced properties can face appraisal gaps because there are fewer comparable sales. If an appraisal comes in low, you may need to bring cash to cover the difference or renegotiate. For context on appraisal shortfalls, review this analysis from CoreLogic.

Smart buyer strategies

• Model both conforming and jumbo paths. If your budget is close to the limit, a larger down payment or a second‑lien structure might keep you conforming. Compare total cost, not just the rate.
• Get fully preapproved early, including income, assets, and reserves. Ask your lender to spell out their reserve requirement in writing.
• Plan for an appraisal gap. Set aside funds or craft an offer with a partial appraisal contingency.
• Coordinate timing if you need to sell first. A bridge loan can help you avoid a sale contingency, but compare the cost and risk with a traditional contingent offer. See a primer on bridge loans from NerdWallet.
• Watch the rate environment. In early October 2025, the 30‑year fixed average was in the low 6 percent range, based on Freddie Mac’s weekly survey. Rate shifts can change your monthly payment and approval.

Quick financing checklist

• Confirm your target loan size against the $806,500 conforming limit using the FHFA announcement.
• If using FHA, confirm the Dallas County FHA limit via this county limits summary.
• Price out conforming, jumbo, and portfolio options with at least two lenders.
• Gather full documentation: W‑2s or K‑1s, 1099s, tax returns, bank statements, and asset statements.
• Verify reserve requirements using the Fannie Mae guidance.
• Estimate taxes and insurance using the city and county sources: City of Richardson and Dallas County Tax Office.
• Discuss appraisal timing and gap plans before you write an offer.

Finding the right loan for an upscale Richardson home is about fit, not just the lowest rate. With the right structure, documentation, and timing, you can protect your budget and strengthen your offer. If you want a clear plan and a smooth path to closing, connect with Deann Abbott for tailored guidance.

FAQs

Is an $850,000 loan in Richardson considered jumbo in 2025?

• Yes. The 2025 conforming limit for Dallas County is $806,500, so an $850,000 loan is jumbo unless your down payment reduces the loan to at or below the limit. See the FHFA announcement.

Can I finance a $1.2 million Richardson home?

• Yes. You will likely use a jumbo, portfolio, or non‑QM loan, which often require higher credit standards, larger reserves, and possibly higher rates or fees. For context on jumbo loans, review Investopedia’s overview.

What happens if the appraisal comes in low on a luxury home?

• Options include bringing extra cash, negotiating a lower price, asking for a reconsideration of value, or switching lenders for a new appraisal. Each choice has timing and risk tradeoffs. See CoreLogic’s take on appraisal gaps here.

Should I use a bridge loan to avoid a sale contingency?

• It can make your offer stronger, but bridge loans carry higher costs and risk if your current home sells slowly. Compare the total cost and risk against a contingent offer. Learn more from NerdWallet’s bridge loan explainer.