Bank Statement Loans In Horseshoe Bay — The Quick Read: Super jumbo bank statement loans let high-income, self-employed borrowers qualify on deposit history instead of traditional personal-income documentation, with two wholesale ladders covering $300,000 to $30,000,000. Leverage steps down as the loan size climbs, credit and reserve requirements tighten above roughly $3,500,000, and every file above $4,000,000 gets manual, case-by-case underwriting before it ever reaches a lender’s desk. This is a mechanics explainer — how the file is actually read, not a market forecast for any one property or ZIP code. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
What a Bank Statement Loan Actually Is
A bank statement loan looks at your deposit history instead of traditional personal-income documents, subject to lender and program guidelines. This matters most for founders, physicians, attorneys, and investors. Their businesses often use legitimate write-offs that shrink taxable income on paper, even though cash flow stays strong.
Full-time self-employment hit a record in the most recent year measured. It rose from 16.74 million to 16.77 million filers, according to SBE Council. That’s a large and growing group of borrowers. Their traditional personal-income documents often understate what they actually bring home. This documentation method is built to close that exact gap on large loan amounts, where the property price outruns what a tax-return-based file would support.
These loans sit in the non-QM space. That means they follow lender-set investor guidelines instead of the standardized documentation box used for agency-eligible mortgages. This gives underwriters room to look at cash flow the way a business owner actually experiences it. But it also means two lenders can review the same file and land on different leverage or reserve conditions. There’s no single published rulebook you can check a quote against.
How Underwriting Reads the File, Step by Step
the deal works through a fixed sequence regardless of loan size. Understanding each step explains why two borrowers with the same gross deposits can get very different outcomes.
Deposit totals get pulled and cleaned first. The underwriter adds up eligible deposits across the statement window, then strips out transfers, loan proceeds, and one-time irregular credits that aren’t real income.
Large or unexplained deposits get flagged. Any deposit that stands out from the average monthly pattern typically needs a paper trail — an invoice, a contract, a sale record — or it gets excluded from the income calculation entirely.
Business accounts take an expense ratio; personal accounts generally don’t. Business deposits are gross revenue, not net income, so a flat percentage gets subtracted to approximate operating cost. Across the wholesale network Lendmire places files through, that ratio generally scales with staffing and business type, running lower for a service business with no employees and higher as employee count grows or for product-based businesses, with an alternative profit-and-loss method available at the top end — or a lender may accept a lower, accountant-documented ratio when supported. Personal-account deposits, and transfers from the borrower’s own business into a personal account, generally count at 100%, since that money has already cleared the business.
Account quality gets reviewed on top of the total. Excessive overdrafts or non-sufficient-funds activity can affect eligibility even when the raw deposit number looks strong.
Loan size determines which ladder the file rides. Once qualifying income is set, the loan amount decides whether the file runs through the portfolio non-QM structure or the bank portfolio structure — and that choice drives everything from leverage to interest-only availability.
On investment property, the appraisal adds its own income data point. For one-unit rentals, appraisers complete Fannie Mae’s Form 1007 rent schedule; for two- to four-unit properties, they use Form 1025. Both forms document comparable rents on a monthly-lease basis, and Fannie Mae’s own appraiser guidance is explicit that the form calls for the “Indicated Monthly Market Rent” derived from properties leased month to month — not nightly short-term-rental rates multiplied by 30. Trade guidance on this point is consistent: using nightly STR comps and multiplying by 30 days overlooks vacancy, furnishing costs, and other short-term-rental expenses that a monthly lease comp already accounts for, so appraisers are directed to base the number on monthly-lease comparables even when the subject property operates as a short-term rental. Short-term rental rules also vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income for any purchase decision.
The Two Ladders: $300K to $6M, and $300K to $30M
Two structures cover this space in Lendmire’s wholesale network, and loan size — not just the borrower’s income — decides which one a file rides.
The portfolio non-QM bank statement program carries files from $300,000 to $6,000,000, using 12 or 24 months of statements depending on the file. The bank portfolio program runs 12-month statements only, and it has its own size-based ladder that starts overlapping the portfolio program above $4,000,000 and stands alone above $6,000,000, running to $30,000,000: 65% at or below $5,000,000, 60% at or below $10,000,000, and 55% up to $30,000,000, with interest-only capped at 60% or the band’s own ceiling, whichever is lower. Every figure on that ladder is a ceiling, reviewed case by case before submission — never a flat “up to.”
Leverage Steps Down as the Loan Gets Bigger
Here’s the clearest mechanical fact in super jumbo underwriting: leverage shrinks as the loan size rises, and it shrinks fastest above $3,500,000. The tables below show the best leverage typically available through select wholesale programs, subject to full underwriting. Actual results still vary by credit, reserves, and property.
| Loan Amount | Primary Residence Purchase | Second Home Purchase | Investment Purchase |
|---|---|---|---|
| $300K–$1M | 90% (680+) | 85% (700+) | 85% (700+) |
| $1.5M–$2M | 85% (720+) | 80% (700+) | 80% (700+) |
| $3M–$3.5M | 75% (720+) | 65% (760+) | 60% (680+) |
| $3.5M–$4M | 75% (760+) | 65% (760+) | 60% (680+) |
| $4M–$5M | 65%, case by case (680+) | 65%, case by case (760+) | 65%, case by case (760+) |
| $5M–$6M | 60%, case by case (680+) | 55%, case by case (680+) | 55%, case by case (680+) |
| $10M–$30M | 55%, case by case (680+) | 50%, case by case (680+) | 50%, case by case (680+) |
Two things jump out reading that table across occupancy types. First, second homes and investment properties run roughly five points lower in leverage than a primary residence at almost every size band — the file gets read more conservatively when the borrower isn’t living there. Second, the drop between $3,500,000 and $4,000,000 isn’t gradual on a primary residence; That drop marks the line where super jumbo overlays kick in, and it’s the single most important leverage threshold a borrower shopping in this size range needs to know before they write an offer. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Cash-out leverage runs lower than purchase leverage at every size, and it splits by collateral type in a way worth stating plainly: a 70% cash-out ceiling generally applies to short-term-rental collateral, while a 75% ceiling applies to standard long-term rental collateral in the same size band. Above 60% LTV, the portfolio program caps cash proceeds at $1,500,000; the bank portfolio program has no published cash-out cap of its own.
Where the Overlays Tighten: The $3.5M / $3M Line
Above $3,500,000 on a primary residence, or $3,000,000 on a second home or investment property, a distinct set of overlays applies regardless of how strong the rest of the file looks. Credit steps up to a 700 floor. Housing history has to show a clean 0x30x24 — zero 30-day-late payments across two years. Any credit event, from a short sale to a bankruptcy, needs 48 months of seasoning. Borrowers must be U.S. citizens or permanent residents, non-occupant co-borrowers aren’t permitted, rural property is excluded, acreage tops out at ten acres, and cash-out proceeds can’t be used to satisfy the file’s reserve requirement. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
That last point trips up more borrowers than any other overlay on this list. A borrower who plans to pull equity and immediately count part of it toward reserves will get that line struck from the file — reserves have to come from assets that exist independent of the transaction.
Across files that size, the underwriting pattern is fairly consistent: strong liquid reserves and a clean housing-payment history do more to move an underwriter above $3.5 million than a slightly higher deposit average does. Lenders in this bracket are pricing for concentration risk on a single large asset, and they read the reserve line and the housing history before they read anything else.
Reserves, Credit, and Documentation
Reserve requirements scale with loan size: three months of the housing payment on smaller loan amounts, six months on mid-sized balances, and nine months above that — plus two additional months for every other financed property the borrower owns, capped at twelve months total. A first-time real estate investor needs a full twelve months of reserves regardless of loan size. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Credit floors run 660 on the portfolio program, 680 on the bank portfolio program, and 700 once a file crosses into super jumbo overlay territory. Debt-to-income can run as high as 50% on most files.
Documentation is 12 or 24 consecutive months of bank statements — the bank portfolio program uses 12 months exclusively. Business accounts need the borrower to hold at least 25% ownership. Statements must be consecutive; an online transaction history printout doesn’t substitute for the actual statement.
Two alternative qualification paths exist for borrowers whose income doesn’t fit a deposit-averaging model well. The asset allowance path divides liquid assets by 36, 60, or 84 months to create a qualifying income figure. Once the loan amount exceeds $3,500,000, the 84-month term becomes mandatory, and this path is limited to primary and second homes at a maximum 80% LTV. The assets-only path removes income from the equation entirely. Instead, your qualifying liquidity has to equal the loan amount, plus closing costs, plus 60 months of any net loss on other owned residential property. Retirement account balances count toward that liquidity test at 70% (or 80% once you’re past 59½). Business funds, gift funds, non-revocable trusts, unvested stock, and cryptocurrency never count. Final terms still depend on lender guidelines, property type, leverage, and your complete credit picture.
Say you’re weighing bank statement income against a straight asset-based path. This is where a broker earns their keep. A business owner with volatile deposits but heavy liquid reserves often fits better with the asset allowance path than with deposit averaging. Both paths still sit under the same non-QM umbrella, though. Lendmire’s complete DSCR loans guide covers a parallel path for investors. It lets them qualify on the rental’s cash flow instead of on personal deposits or personal assets.
Property Types That Change the Math
Not every property carries the same ceiling. Warrantable condos go to 85% LTV; non-warrantable condos cap at 80%. Condotels are more restricted — 75% on a purchase and 65% on a cash-out through the portfolio program, or 50% on a cash-out through the bank program. Two- to four-unit properties can go to 85%. Second homes are limited to single-unit properties only — a second-home buyer can’t use this documentation method on a duplex. Rural property caps at 80% on parcels of ten acres or less and is excluded entirely above $3,000,000. In Texas, a 50(a)(6) home-equity cash-out loan takes a five-point LTV reduction and stops at $3,000,000 on the portfolio program.
Key Terms Defined
Super jumbo: an industry term, not a regulatory one, for loans that exceed standard jumbo sizing and trigger a lender’s tightest overlays — there’s no federal cutoff that defines it.
Expense ratio: the flat percentage subtracted from gross business deposits to estimate real net income, since a business bank statement shows revenue, not profit.
Case-by-case review: a manual underwriting process, used above roughly $4,000,000, where a file is evaluated individually rather than approved off a standard leverage grid.
Reserves: liquid funds a borrower must hold, beyond closing costs and down payment, equal to a set number of months of the housing payment.
Non-QM: a loan that sits outside the standardized Qualified Mortgage documentation category, allowing lenders to use alternative income verification like bank statements or assets.
The Decision, in Practice
A borrower deciding whether this documentation path fits should work backward from three numbers: the purchase price, the credit score, and twelve to twenty-four months of real deposit history. If the loan lands above $3,500,000 on a primary residence, the overlay checklist — 700 credit, clean 0x30x24 history, no non-occupant co-borrower, ten-acre limit — needs to check out before an offer gets written, not after. If the loan sits between $4,000,000 and $6,000,000, both ladders may apply, and the file should be shopped against both rather than assumed onto one. And if the borrower has more liquid assets than clean deposit history, the asset allowance or assets-only path is worth pricing out before assuming deposit averaging is the only route.
For an investor buying strictly for rental income rather than personal use, a DSCR loan — qualifying primarily on the property’s rental income covering the payment, subject to lender guidelines — is often the cleaner comparison. Lendmire’s guide on choosing between a DSCR loan and a bank statement loan walks through that fork for investors weighing both paths on the same purchase.
Frequently Asked Questions
Does a bank statement loan mean no income verification? No — it means income is verified through deposit history instead of traditional income documentation, and the underwriter still applies an expense ratio, reviews account quality, and sources large deposits. It is a documentation method, not a skip of underwriting.
What happens to a file right at $4,000,000? It moves from grid-based leverage into manual, case-by-case underwriting, and it typically qualifies for review under both the portfolio program and the bank portfolio program, so it’s worth having the file shopped against both ladders rather than assumed onto one.
Can cash-out proceeds count toward the reserve requirement above $3,500,000? No. Above the super jumbo overlay line, reserves have to come from assets that exist independent of the transaction — cash-out proceeds from the same loan can’t satisfy that requirement.
Does a short-term rental appraisal work differently under Form 1007? Yes in one important way — appraisers are directed to base the market rent opinion on comparable properties leased monthly, not on nightly short-term-rental rates multiplied by 30 days, since that approach overlooks vacancy and furnishing costs specific to short-term rentals.
Is a jumbo loan automatically a non-QM bank statement loan? No. Jumbo describes loan size; non-QM describes documentation method. A loan can be jumbo in size and still meet Qualified Mortgage standards, or it can be well under jumbo size and still be underwritten as non-QM. The two classifications are independent of each other.
Are you weighing a large purchase where regular personal-income paperwork won’t show your real cash flow? Or are you comparing this option to a DSCR loan for a rental purchase? Either way, Lendmire can help. We compare options across our wholesale network based on the property, your credit profile, the leverage you need, and your actual liquidity. Call 828-256-2183 or request a quote to see how your file looks.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 40 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 2026).
Lendmire’s Top Mortgage Workplace recognition is documented by Scotsman Guide 2025 Top Mortgage Workplace and Scotsman Guide 2026 Top Mortgage Workplace.
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References
1. SBE Council – Fulltime Self-Employment Reaches Highest Level on Record in 2025
2. Fannie Mae – Appraiser Update June 2024
3. McKissock Learning – Form 1007 & Its Impact on Short-Term Rental Appraisals
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.
