Estate Purchase Guide

Estate Purchase Guide glossary

Key terms

In brief

These terms come up when buying a high-value home with a jumbo loan, each with a primary source.

Last reviewed against the primary sources listed below.

Jumbo loan
A mortgage above the conforming loan limit for the county. Source: FHFA: Conforming loan limit values
Conforming loan limit
The maximum loan size Fannie Mae and Freddie Mac can buy, set yearly by FHFA. Source: FHFA: Conforming loan limit values
Reserves
Savings left after closing, measured in months of housing payments. Source: Fannie Mae Selling Guide B3-4.1-01: Minimum reserve requirements
Variable income
Pay that changes, like bonuses and commissions, which needs a documented history. Source: Fannie Mae: HomeView homebuyer education

Sources for buyers