Bigger homes. Smarter financing.

A jumbo mortgage is a home loan larger than the conforming loan limit. Fannie Mae and Freddie Mac can only buy loans up to that limit, which is set each year by the FHFA and is higher in some high-cost counties. Any loan above the limit for the county where the property sits is a jumbo loan.

Because jumbo loans are not backed by Fannie Mae or Freddie Mac, each lender sets its own guidelines. Rates, down payments and approval rules can differ a lot from one lender to the next.

Requirements vary by lender and program, but jumbo files commonly involve stronger credit than many conventional loans require, a larger down payment than a standard conforming purchase, and cash reserves after closing.

Lenders also tend to want lower debt-to-income ratios and well-documented income, plus a full appraisal, and sometimes a second appraisal on larger loans. Getting these pieces organized before you make an offer makes a jumbo purchase smoother.

On a larger balance, a small difference in rate or fees adds up to real money over the life of the loan. AMS Mortgage Services is a licensed mortgage broker, so we shop your file across wholesale lenders, including portfolio lenders that specialize in high-balance loans, and show you side-by-side Loan Estimates.

Self-employed buyers and investors can sometimes qualify with alternative documentation, such as bank statement programs or asset depletion, instead of tax returns alone. Which option fits depends on your income, assets and the property.