Alt-AUS loans (Alternative AUS Solution) are jumbo mortgages that run through Fannie Mae’s Desktop Underwriter with limited overlays. Loan amounts from $300,000 to $3 million. 20, 25, or 30 year fixed only. 49.99% DTI maximum — significantly higher than the 43% DTI ceiling on most other jumbo programs. Full documentation only (W-2 transcripts via The Work Number). No prepayment penalty. The fastest, most predictable jumbo approval for borrowers with clean W-2 income above the conforming loan limit. Lending in 49 states. New York excluded.
No SSN required. Takes about 2 minutes.
What is an Alt-AUS Loan?
Alt-AUS is short for Alternative AUS Solution. AUS stands for Automated Underwriting System — software that scores your loan file against thousands of rules in seconds instead of an underwriter reviewing it manually. The two main agency AUS engines are Fannie Mae’s Desktop Underwriter (DU) and Freddie Mac’s Loan Product Advisor (LPA). Alt-AUS follows DU findings specifically, with a small set of lender overlays plus some non-QM flexibility on DTI. It’s one of the eight jumbo programs profiled on our Jumbo Loans page — specifically the AUS-Driven Jumbo path.
Who Alt-AUS Is For
Best fit borrowers
W-2 employees with strong credit and clean documentation buying or refinancing above the conforming loan limit. The 2026 baseline conforming limit is $832,750 (up to $1,249,125 in high-cost counties). Above those numbers, you’re in jumbo territory — and Alt-AUS is the cleanest jumbo path if your file qualifies under DU.
High-DTI W-2 earners
The 49.99% DTI cap is the single biggest advantage of this program. Most jumbo programs cap DTI at 43%. If your DTI is 45-49%, Alt-AUS may be the only conforming-style jumbo path that works for you — provided your credit is 700+ and you have 6+ months reserves.
Borrowers who want NO prepayment penalty
Alt-AUS does not carry a prepayment penalty at any tier. This matters if you plan to sell, refinance, or make large principal paydowns within a few years. Many non-QM jumbo programs do carry prepay penalties on investment properties — Alt-AUS doesn’t.
Not a fit for self-employed borrowers with significant write-offs
Alt-AUS requires self-employed borrowers to qualify on tax-return income with a 720+ credit score. If your tax returns understate qualifying income because of legitimate business write-offs, Bank Statement, P&L, or 1099 Income loans are typically better routes.
Loan Amounts & LTV at a Glance
Owner-occupied purchase or rate/term refinance
$3M at 60% LTV (740+ credit). $2.5M at 65% LTV (720+ credit). $2M at 70-75% LTV (680+ credit). $1.5M at 80% LTV (661+ credit). First-time homebuyers cap at $1.5M regardless of LTV.
Owner-occupied cash-out refinance
$2M at 60% LTV (1-4 unit, 680+ credit). $1.5M at 75% LTV (1-2 unit, 680+ credit). $1M at 80% LTV (1 unit, 680+ credit).
Second home and investment
Second home purchase: $2M at 65% LTV or $1.5M at 80% LTV (680+ credit). Non-owner-occupied investment: $1.5M at 75% LTV purchase/rate-term (680+ credit). Non-owner-occupied cash-out: $1.5M at 60% LTV (700+ credit required).
No SSN required. Takes about 2 minutes.
Key Rules
DTI: 49.99% maximum
DTI above 45% requires 700+ credit AND 6 months reserves. Below 45% DTI, standard tier credit floors apply. The 49.99% cap is the strongest distinguishing feature versus other jumbo programs (most cap at 43%).
Credit: 661 minimum, up to 740 at top tier
Credit floor scales with loan amount and LTV. 661 on the most flexible tier ($1.5M at 80% LTV). Most tiers require 680. The $2.5M and $3M tiers require 720 and 740. Self-employed borrowers always need 720+ regardless of tier.
Documentation: Full doc only
W-2 transcripts via The Work Number or equivalent Fannie Mae-approved third-party vendor. Tax returns and IRS transcripts when DU requires them. Manual verification of employment is NOT permitted. No bank statement, 1099, P&L, or asset depletion paths within Alt-AUS.
Terms: Fixed-rate only
20, 25, or 30 year fixed. No ARMs. No interest-only. No balloon payments. If you need IO or ARM on a jumbo, the Interest-Only Jumbo program offers IO up to $5M.
No prepayment penalty
Pay off the loan at any time without penalty. Sell, refinance, or make extra principal payments freely. This is a meaningful consumer advantage versus non-QM jumbo paths that often carry prepay penalties on investment properties.
No temporary buydowns
Temporary buydowns (1-0, 2-1, 3-2-1) are not allowed on Alt-AUS. Seller credits must be applied as permanent rate buydowns (discount points) or general closing cost credits.
How Alt-AUS Compares
Alt-AUS vs Standard Jumbo
Higher DTI tolerance (49.99% vs 43%). DU-driven (faster decision than manual jumbo). Fixed-rate only (other jumbo programs offer ARMs and IO). No prepay penalty. Full-doc only.
Alt-AUS vs Non-QM Jumbo
Alt-AUS is W-2 / full-doc only; non-QM jumbo accepts bank statements, 1099s, P&L, or assets. Alt-AUS typically prices better for clean W-2 files. No prepay penalty on Alt-AUS; non-QM jumbo paths may have prepay on investment properties.
Alt-AUS vs Conventional Conforming
Below $832,750 (or $1,249,125 in high-cost counties), conventional conforming wins — easier underwriting, lower rates. Above the conforming limit, Alt-AUS is one of the jumbo options to evaluate.
Alt-AUS vs VA Jumbo
If you’re VA-eligible with remaining entitlement, VA Jumbo almost always wins. No down payment with full entitlement. Lower rate. No PMI. The VA funding fee applies (waived for 100% disabled veterans).
Frequently Asked Questions
For detailed answers on credit, DTI, documentation, property types, condotels, cash-out limits, refinance options, credit events, waiting periods, and the application process, see the Alt-AUS Loans FAQ — 79 questions with full matrix-sourced answers.
No SSN required. Takes about 2 minutes.
About this page: Compiled by J.D. Peck, NMLS #314883, Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group (PRMG), NMLS #75243. 25+ years of mortgage lending experience, 3,100+ loans closed, Scotsman Guide Top Originator 2026. Rules above are from the PRMG Alternative AUS Solution product profile dated 02/12/2026. Guidelines, fees, and limits are subject to change. Lending in 49 states. New York excluded. Last updated June 6, 2026.