Mortgage Lending Archives - SouthStar Bank, S.S.B.

by SouthStar BankJune 10, 2026

What Is a Jumbo Mortgage Loan? A Complete Guide for Homebuyers

If you’re shopping for a high-value home, you may come across the term jumbo mortgage loan. Understanding jumbo loans can help you determine whether this financing option is right for your needs. This guide breaks down the basics of jumbo mortgages and shows how your local SouthStar Bank team can help you navigate the process with confidence. What Is a Jumbo Mortgage Loan? A jumbo mortgage loan is a type of home loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These limits vary by location, but in most areas, any loan above the standard threshold (set at $832,750 for Texas in 2026) is considered a jumbo loan. Jumbo loans are not eligible for purchase by Fannie Mae or Freddie Mac and are therefore considered nonconforming loans. This means lenders take on more risk, which often results in stricter qualification requirements for borrowers. Key Features of Jumbo Loans Jumbo mortgage loans share some similarities with conventional loans, but there are a few important differences: Higher Loan Amounts: Designed for luxury homes or properties in competitive real estate markets. Stricter Credit Requirements: Borrowers typically need a higher credit score, often 700 or above. Larger Down Payments: Many jumbo loans require at least 10–20% down, though options may vary. Lower Debt-to-Income Ratios: Lenders want to ensure you can comfortably manage larger monthly payments. Cash Reserves: You may need to show several months of reserves to qualify. Who Should Consider a Jumbo Loan? A jumbo mortgage loan may be a good fit if you’re: Purchasing a high-priced home Buying in a competitive or high-cost housing market Looking for financing that exceeds conforming loan limits Financially stable with strong credit and income Even if you meet these criteria, it’s important to work with a knowledgeable lender who can guide you through the unique requirements of jumbo financing. At SouthStar Bank, our lending team has the experience, knowledge, and local expertise to guide you every step of the way! Benefits of a Jumbo Mortgage Loan While jumbo loans come with stricter qualifications, they also offer several advantages: Financing for Luxury Properties: Access to higher loan amounts allows you to purchase your dream home. Choose Between a Variety of Mortgage Terms: SouthStar Bank offers a number of options including 30-year fixed rate mortgages, Adjustable Rate Mortgages (ARM), and in certain cases Interest Only options. No Fannie Mae or Freddie Mac Restrictions: Because jumbo loans are nonconforming, many traditional restrictions are lifted. How SouthStar Bank Can Help At SouthStar Bank, we understand that purchasing a high-value home is a major financial decision. Our experienced mortgage team works closely with you to simplify the jumbo loan process and find a solution tailored to your needs. We offer: Personalized guidance from application to closing Competitive jumbo mortgage rates Flexible terms designed for your financial goals Local expertise you can trust Whether you’re upgrading your home or investing in a premium property, SouthStar Bank is here to help you secure the financing you need. […]

General Education, Mortgage Lending

by SouthStar BankMay 19, 2026

What to Know About a Mortgage

Buying a home is one of the biggest financial decisions you’ll ever make, and understanding how a mortgage works can help you feel more confident throughout the process. Whether you are purchasing your first home, upgrading to your dream house, or refinancing your current loan, knowing the basics of mortgages can make homeownership more manageable. At SouthStar Bank, we believe informed borrowers make stronger financial decisions, and our team of local experts are here to guide you every step of the way! What Is a Mortgage? In basic terms, a mortgage is a loan used to purchase a home or other real estate. The lender provides the funds upfront, and the borrower repays the loan over time through monthly payments. Mortgage payments typically include: If your down payment is below 20%, you will also need to pay Private Mortgage Insurance (PMI), which can affect your monthly payment. Types of Mortgage Loans There are several types of mortgage loans available, and the right option depends on your financial situation and goals. Conventional Loans Conventional loans are popular among borrowers with solid credit and stable income. They often offer competitive interest rates and flexible terms. FHA Loans Backed by the Federal Housing Administration, FHA loans are designed to help borrowers with lower credit scores or smaller down payments qualify for home financing. VA Loans VA loans are available to eligible veterans, active-duty service members, and qualifying spouses. These loans often require little to no down payment. Jumbo Loans Jumbo loans are for higher-priced properties that exceed conventional loan limits. These loans may require stronger credit and larger reserves. How to Prepare for a Mortgage Taking time to prepare before applying for a mortgage can improve your approval chances and help you secure better loan terms. Here are a few important considerations when preparing for a mortgage: Working with a trusted local lender can also make the process smoother. At SouthStar Bank, our experienced mortgage professionals provide personalized, hometown, expert guidance to help borrowers navigate every step of the home financing process. Why Work With a Local Bank for Your Mortgage? Choosing a local bank means working with lenders who understand your community and can offer personalized service. Local decision-making, responsive communication, and relationship-focused banking can make a significant difference during the homebuying process. If you’re ready to explore your home financing options, reach out to your local SouthStar Bank lender today to learn how we can help make your home ownership dreams a reality! Glossary of Mortgage Terms Before applying for a mortgage, it’s important to be able to define the following terms. Mortgage Interest Rate A mortgage interest rate is the percentage a lender charges to borrow money for a home loan. Your interest rate affects your monthly mortgage payment as well as how much you’ll pay over the life of the loan. Rates can be fixed or adjustable. Mortgage Loan Term The loan term refers to the length of time you have to repay your loan. Most mortgage terms are […]

Mortgage Lending

by SouthStar BankNovember 10, 2025

SouthStar Bank Mortgage Programs: Helping Texans Achieve Homeownership

For more than a century, SouthStar Bank has been helping Texans achieve their dreams of homeownership through personalized service, flexible financing, and local decision-making. Whether you’re buying your first home, upgrading to your forever home, or refinancing an existing mortgage, SouthStar Bank’s local experts are here to help you find the right loan for your needs! Personalized Mortgage Solutions with a Local Touch At SouthStar Bank, we treat every loan as more than a transaction; we treat it as a relationship. As a community bank with deep Texas roots, SouthStar Bank’s mortgage professionals take the time to understand your needs, identify the best loan program for you, and guide you through every step of the homebuying process. With underwriting decisions made locally, borrowers benefit from faster approvals and genuine customer care you won’t find with larger national lenders. A Range of Mortgage Options for Every Buyer SouthStar Bank offers a variety of home loan programs to serve a wide range of borrowers: Conventional Loans: Ideal for buyers with strong credit and established savings, offering competitive rates and flexible down payment options. VA Loans: Exclusively for qualified veterans, active-duty military, and surviving spouses, VA loans offer zero down payment options and no private mortgage insurance (PMI). ITIN Loans: Specifically designed for those pursuing homeownership without a Social Security Number. Jumbo Loans: For luxury properties or higher-priced homes that exceed conventional loan limits, SouthStar Bank provides customized jumbo loan solutions. Rural Living Loans: Available for customers looking for something more than a postage-stamp lot and big-city congestion. Refinance: Refinancing options as rates change Lot and Construction Loans: Funding options from raw land to construction and permanent mortgage financing Empowering First-Time Homebuyers Buying your first home can feel overwhelming but with SouthStar Bank, it doesn’t have to be. The H.O.P.E. Home Loan Program is designed to make homeownership more accessible, affordable, and less intimidating. H.O.P.E. Loan Advantages: No downpayment required No mortgage insurance (PMI) requirement No origination fees No SouthStar Bank closing costs While first-time buyers get to take advantage of low-down payment options, down payment assistance, and competitive fixed-rate loans tailored to fit their budget. They also get access to SouthStar Bank’s expert loan officers, who offer local expertise, one-on-one guidance, education on credit requirements and loan terms, and what to expect at closing. Start Your Homeownership Journey Today Whether you’re just starting to explore homeownership or ready to apply for a mortgage, SouthStar Bank is here to help you every step of the way. With local expertise, flexible loan options, and a commitment to putting people first, SouthStar Bank is more than a lender, it’s your homebuying partner. Ready to get started? Contact your local branch or start your application today!

Mortgage Lending

by SouthStar BankAugust 18, 2025

7 Smart Tips for Saving for a Down Payment on Your First Home

Saving for a down payment is often the biggest hurdle for first-time homebuyers. Whether you’re planning to save the standard 20% down payment or planning to use a first-time homebuyer program, a clear strategy and consistent habits are essential. Below are seven smart, actionable tips to help you save—plus how SouthStar Bank can support you on your journey to homeownership. 1. Set a Realistic Down Payment Goal Before you begin saving, it is essential to determine how much you’ll need. While a 20% down payment is standard for conventional loans, many first-time homebuyer programs require as little as 3% to 5%. SouthStar Bank’s H.O.P.E Home Loan1 program goes beyond traditional first-time homebuyer programs to offer even more support to help you get into your first home. If you are interested in learning what kind of down payment you may need, SouthStar Bank’s local lending experts are available to discuss your options and determine your down payment goal. 2. Open a Separate Down Payment Savings Account Creating a dedicated savings account to keep your down payment funds separate from everyday spending can be a great help in accomplishing your final goal. Using an account for regular transactions can make saving more challenging to track and control. A dedicated account, on the other hand, allows you to monitor your progress closely and manage your spending more effectively. 3. Automate Your Savings Setting up automatic transfers into your down payment account ensures consistency and removes the temptation to skip months. Even modest contributions—such as $100 per week—can add up quickly. Some employers also allow you to split direct deposits to multiple accounts. Setting up this feature can be a good tool for accomplishing your down payment savings goals. 4. Cut Back on Expenses Lowering your daily expenses, whether it be skipping your morning latte or rethinking big trips, can offer a boost to your savings. Work to reduce discretionary spending by limiting takeout, pausing unused subscriptions, or shopping more intentionally. Funnel those extra funds directly into your down payment fund every month. 5. Increase Your Income with a Side Hustle Consider freelance work, online selling, or part-time gigs. Any extra income can make a big difference when directed straight into your savings account. Currently, there are many credible side-hustles you can do online. Starting an online storefront or pursuing a profitable creative venture can be a great way to make some extra money without interfering with your current work schedule. 6. Use Windfalls to Boost Your Savings Large windfalls of funds can significantly accelerate your down payment savings. Put tax refunds, work bonuses, or monetary gifts toward your down payment. These unexpected funds can make a significant dent in your savings goal if handled wisely. 7. Take Advantage of First-Time Homebuyer Assistance Programs Purchasing your first home can feel like a major financial and mental endeavor. Thankfully, many first-time homebuyers qualify for grants, forgivable loans, or down payment assistance programs at the local, state, or federal level. SouthStar Bank offers several mortgage options […]

Construction Loans, Land Loans, Mortgage Lending

by SouthStar BankJuly 23, 2025

Your Home for Rural Lending

If you’re looking for a trusted partner for your rural lending needs, choosing the right financial partner matters. National banks may offer convenience, but they often fall short when it comes to understanding the unique financial needs of rural borrowers. At SouthStar Bank, we value the rural communities we work and live in. Our local expertise makes us the smart choice for individuals, families, and businesses in rural areas. With a strong commitment to local communities and decades of experience in Texas rural lending, SouthStar Bank delivers personalized service and flexible loan solutions that national lenders simply can’t match! Deep Local Knowledge and Personalized Lending SouthStar Bank’s lending team lives and works in the same rural communities they serve. This gives them a clear understanding of local land values, agriculture cycles, and the economic challenges rural Texans face. Whether you’re applying for a farm loan, purchasing rural property, or expanding your ranch, SouthStar Bank provides fast, locally made decisions backed by real expertise. Flexible Financing Options for Rural Texans No two borrowers are alike—especially in rural areas where traditional loan models often don’t apply. SouthStar Bank specializes in customized rural lending solutions, including: Farm and Ranch Loans Rural Living Mortgage Program Star Advantage Program: Mortgage Solutions for Unique Situations Lot and Construction Loans Commercial and SBA Lending Beyond living and working in our communities, we also make our decisions in house, this allows us to offer flexible terms and creative solutions tailored to your situation. Investing in Texas Communities As a true Texas community bank of more than 100 years, SouthStar Bank reinvests in the areas it serves. The money you deposit stays local—supporting other families, farms, and small businesses in your region. That means when you bank with SouthStar, you’re not just getting financing, you’re helping build a stronger local economy! Trusted Relationships, Not Transactions SouthStar Bank is relationship-focused, not transaction-driven. Our loan officers take time to get to know you and your goals, providing expertise and support throughout the entire lending process. We have worked hard for over 100 years to earn the trust of our local communities and develop relationships that last generations. Choose SouthStar Bank for Your Rural Lending Needs If you’re in need of rural lending solutions in Texas, SouthStar Bank offers the local expertise, flexible financing, and personalized service you deserve. Whether you’re buying land, financing a farm, or building your dream home in the country, SouthStar Bank is your trusted partner for success. Ready to start your Rural Lending journey? Contact your local experts today!

Mortgage Lending, Portfolio loans

by SouthStar BankOctober 26, 2022

Portfolio Loans

Portfolio Loans | SouthStar Bank What is a portfolio loan? A SouthStar Bank portfolio loan is originated and funded right here at our institution, and never moves into the secondary mortgage market. It’s called a “portfolio loan” because it’s always going to stay in our portfolio. That means we can rely on our relationship with the customer to determine loan eligibility even if they don’t meet the typical mortgage profile. For example, meet Annie. Annie is a freelance marketing consultant with variable income. Her credit score has taken a few hits but we’ve known Annie for years. She’s been a customer in good standing and a part of our community for a long time. Her business is picking up, and she’s starting to get back on her feet. Purchasing a home could improve her stability, her credit, and her children’s lives. She may even want to purchase a four-plex, so she can start earning some rental income on the other three units. Annie comes to SouthStar Bank and meets with one of our loan officers to discuss the Star Advantage Loan. We look at her plans, her property, and total financial picture and make a decision about whether she’ll be a good risk. If we agree the loan makes good business sense, we move forward, even though she would not have been eligible for a loan through Fannie Mae and Freddie Mac. Are portfolio loans a good idea? A portfolio loan generally isn’t riskier for the consumer than any other kind of mortgage. It is riskier for the banker, which means it can come with higher interest rates and fees. Whether they are a good idea for you depends on your unique situation and goals. Would you be able to qualify for a conventional mortgage with just a little more work and time? Do you have aspirations towards becoming a landlord or real estate investor? Are you trying to purchase a non-traditional property or unique property? Of course you should carefully consider the total picture before you make your final decision. Our loan officers are happy to discuss the risks and benefits of a portfolio loan in your specific case. How do you qualify for a portfolio loan? Applying for a portfolio loan isn’t just about forms and numbers. It’s about your story. Be prepared to sit down and discuss yours. Tell us what your assets are, what you hope to accomplish, what’s behind, and what’s ahead. Be thorough and be transparent, even if you think parts of your situation might create an issue. We might be willing to work with you anyway, or we might be able to walk you through specific steps you can take to address areas of concern. What are some common uses for a portfolio loan? Many of our customers have used portfolio loans to: Purchase a residence after a bankruptcy, short sale, foreclosure, or divorce. Purchase a residence while self-employed. Purchase a residence as a foreign national. Purchase a rental property or a fix-and-flip […]

Construction Loans, Construction-to-Permanent Loans, Lot Loans, Mortgage Lending, Mortgage Loan Process

by SouthStar BankJuly 29, 2022

Build Your Future with a SouthStar Bank Construction Loan

Construction Loan | SouthStar Bank Building a house is an adventure. Whether you’re looking for the perfect lot, building a new home, or doing both, SouthStar Bank can help you get started. We offer: 1. Lot Loans Identifying the property is the first stage in building a new home. You can secure the site with a raw land or lot loan until you’re ready to build. These loans normally have periods of 12 months to 3 years, depending on how much time is needed before converting to a construction loan and are amortized over a 20-year period. The money you put down on the land is usually applied to the construction loan’s down payment. 2. Construction Loans Once you’ve confirmed your plans and budget with your builder, you are ready to convert to a construction loan. A construction loan is a short-term loan that ranges from 12 to 18 months in length, depending on the size and budget of the property you’re building. It will be rolled in with your construction loan if you have a loan on your land. The land down payment is applied to the construction loan and in some situations, lot appreciation may be used to reduce the required down payment. 3. Construction-to-Permanent Loans It’s a good idea to think about your long-term finance choices when planning to build your home. Before you start your build, work with a loan officer who will walk you through your options, whether a refinance after construction or a single “one-time-close” loan, so you know what to expect from your permanent mortgage. The fact that a one-time-close construction loan effortlessly turns to a long-term, permanent mortgage once construction is completed is perhaps the most significant advantage. As a result, this loan is the preferred option for many of our borrowers. SouthStar Bank specializes in financing for new home builds in Central Texas. With loans available from land purchase, to a seamless construction draw process, and finally permanent financing, your lender will be there to guide you every step of the way. Talk to one of our qualified loan officers today.

Bank News, IRA Non-Recourse Loans, Mortgage Lending, Real Estate Investing

by SouthStar BankJuly 22, 2022

IRA Non-Recourse Loans – Get Started with Us Today

IRA Non-Recourse Loans | SouthStar Bank Consider the following scenario: You want to buy real estate using your self-directed IRA. The non-recourse loan is applied for by your IRA or retirement plan and the debt is secured by real estate. Some of your IRA money and the non-recourse loan are used to purchase the property, leaving the rest of your IRA funds invested and earning interest. For example, let’s say you find an investment property for $200,000 and have $200,000 in your IRA. You don’t use all the money in your IRA, but maybe $100,000, then you can get a non-recourse loan in the name of the self-directed IRA to make up the difference. Your IRA now has $100,000 in it, which is earning interest and growing. These loans are often utilized to provide you with additional funds in the event that your property requires repairs or upgrades, or to invest in commercial real estate. Taking out a non-recourse loan allows you to diversify your investing portfolio rather than putting all of your eggs in one basket. It’s a huge win for you and your retirement account. By leveraging the bank’s money, non-recourse lending enhances your IRA. Furthermore, the IRA’s money is safeguarded and can be used for other investments. How Do Non-Recourse Loans Work? When you have a small IRA or just don’t have enough funds to invest in real estate, your IRA can get a non-recourse mortgage loan. The non-recourse loan is a loan in the name of the IRA, secured by collateral (usually the property being purchased). The loan is based on the value of the real estate investment and in most situations, the IRA holder’s credit does not play a role in the IRA’s eligibility. Borrow What You Need There is no minimum or maximum loan amount at SouthStar Bank. The loan is in your IRA’s name and the amount you can borrow is determined by the value of your real estate investment. SouthStar Bank offers non-recourse IRA loans for single-family houses and condominiums (2-4 units). Keep in mind that the property’s net operational income/cash flow must be sufficient to cover loan payments. A percentage of the purchase price must be vested in a self-directed IRA for eligible borrowers. Your non-recourse IRA loan down payment will be determined by the property you buy, its condition and estimated cash flow. A 40 percent down payment is usually required by SouthStar Bank. Non-Recourse Loan Benefits A non-recourse loan, as mentioned above, is a form of loan that you can take out using your IRA to buy real estate investments. Your IRA owns these loans, which are subject to UDFI (unrelated debt-financed income) and must be returned through your IRA. Non-recourse loans have other advantages than helping you finance your real estate venture. Your IRA, not you, is responsible for your loan When you open a non-recourse loan, your IRA owns it, not you, which means that you will not be held personally liable should anything happen over […]

Mortgage Lending, Mortgage Loan Process

by SouthStar BankJuly 15, 2022

Finding the most qualified mortgage lender starts here

Finding the Most Qualified Mortgage Lender Starts Here Most Qualified Mortgage Lender | SouthStar Bank SouthStar Bank designs a home loan experience specifically for you. We realize you’re one of a kind. Your mortgage should be too. If you want the opportunity to see what’s possible for your mortgage lending future, start here. We pride ourselves on having the ability to provide traditional local bank service with big bank opportunities. Our traditional mortgage lending offers extensive options to serve you better such as: Star Advantage Program: Home loans for unique situations (also known as Portfolio Loans) Traditional Fixed and Variable Rate Mortgages: Conventional (Fannie Mae & Freddie Mac), FHA, Jumbo, Rural Living, USDA, VA Low Down Rural Acreage Refinance Interim Construction to Permanent Financing Trust a mortgage banker in your community that can guide you through the process Close to home, a mortgage banker can be a reliable ally. They will take the time to get to know you and personalize lending solutions to your specific needs. It doesn’t have to be tough to get a mortgage loan. Your Mortgage Loan Officer will work with you to gather the necessary documentation for a loan decision. Although different loan types are available, the application and review process is much the same. To give you a better idea of what to expect, here’s a synopsis of the mortgage loan process: 1. Application Your MLO will work with you to finish your application and gather any papers required for underwriter assessment. Regulatory disclosures are made when needed. 2. Pre- Approval To make an initial credit decision, the Underwriter will analyze your application and paperwork. If the loan is initially authorized, your loan officer will advise you on the conditions that must be met in order for the loan to be issued, and collect any additional paperwork as required. Many real estate agents will require you to complete this step prior to viewing properties, especially in competitive Central Texas markets such as Austin. Pre-approval will give you an accurate understanding of budget and allow you to make a quick, competitive offer when you find the property. 3. Appraisal Once a property is selected, the Appraisal Reviewer and SouthStar Bank will organize the receipt of the property appraisal. The appraisal and estimated value of the property will be reviewed by the Appraisal Reviewer. You will receive a copy of the appraisal once it has been accepted. 4. Approved for Closing The Processor will re-submit the file to underwriting for final evaluation once all of the conditions have been completed. The Loan Closer will compile and submit the loan closing document package after final approval is received. 5. Ready for Closing Your loan officer will walk you through the final numbers and disclosures and answer any questions you may have. The Closing Agent will confirm the amounts required to close with you and set a date for the closing, at which time you will sign the final loan documents. Get started today! Buying a home is no easy task. There are piles […]

Important Notice, Mortgage Lending

by SouthStar BankFebruary 4, 2020

How Filing a Homestead Exemption Can Help Homeowners

How Filing a Homestead Exemption Can Help Homeowners Are you a recent homeowner? A Homestead Exemption can be an excellent option to reduce your tax burden. Homestead exemptions have the potential to lower your taxes by removing part of your home’s value from taxation. From the Texas Comptroller: “For example, your home is appraised at $100,000, and you qualify for a $25,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $75,000.” While this is a law that exists in most states, property owners might not understand how the exemption works and who can claim it. In this article, we explain what a homestead exemption is, its benefits, who qualifies and how to file What is a Homestead Exemption and How Does It Work? With a homestead exemption, homeowners can deduct part of the property value from their taxes, lowering their overall tax bill. Typically, there is a fixed discount, and then the rest of the value is taxed at the normal rate. This favors homes that have a lower value. Exactly how much protection the exemption provides and how it’s applied varies by state. In some locations, the benefit is automatic. In others, including Texas, a homeowner must first file a claim with their state to be able to receive it. This means that if you’re eligible for a homestead exemption in Texas, you can potentially reduce your tax burden just by filing a claim. Other homestead exemption benefits include protection of a homeowner’s primary residence from creditors in the event of bankruptcy or a deceased spouse. It also helps the surviving spouse with continual tax relief. In addition to financial protection, this exemption offers physical shelter, in that it prevents the forced sale of the property. Benefits of Filing for a Homestead Exemption The benefits of filing for a homestead exemption include: Relief from property taxes – Since property taxes are based on the property’s assessed value, being able to reduce the home’s value on your tax statement makes the property tax significantly lower. Protection from a forced sale – Having a homestead exemption shields the property from a forced sale to pay off creditors. For example, if you had trouble paying bills, without the homestead exemption, creditors could try to seize your property to satisfy your debts. Exceptions are mortgage foreclosures and failing to pay property taxes. Advantages for a surviving spouse – Though state laws vary, in most cases, if the homeowner dies, their surviving spouse is guaranteed the right to stay in the home for their lifetime. They must, of course, continue to make mortgage and other payments in a timely manner. In Texas…. An Important Note: The homestead exemption protection from creditors will not prevent a bank from foreclosing on the home and taking possession of the property if the homeowner defaults on their mortgage payments. Who Qualifies for a Homestead Exemption? To qualify for a homestead exemption, you […]