The Quick Read: A private bank mortgage fits borrowers whose strength is a deep banking relationship and a large balance sheet. Transaction type matters on either path, because cash-out leverage sits below purchase leverage at nearly every loan size.
- A private bank loan is usually kept on the bank’s own books and underwritten on the relationship, assets, and income as that bank defines them.
- A super jumbo bank statement loan reads 12 or 24 months of deposits after an expense ratio instead of traditional personal-income documentation.
- Through select wholesale programs, a primary-residence purchase can reach 90% only up to $1,000,000. Above that, ceilings step down by size.
- Above $4,000,000, every file is reviewed case by case before submission.
- Cash-out is capped lower than purchase, so the leverage figure that matters is the one for your transaction.
Subject to full underwriting and lender guidelines. Nothing here is a commitment to lend.
Who Each Option Is Really For
The honest split is simple. Pick a private bank mortgage if you already hold substantial assets at one institution and want that bank to underwrite the whole relationship. Pick a super jumbo bank statement loan if your business deposits tell the income story and you want a path that does not depend on one bank’s appetite.
Neither option is the easier one. Both sit outside the agency box. Anything above the agency limit is jumbo. “Super jumbo” has no regulatory definition. It is a market label for very large jumbo loans.
A broker works the statement-program side of this every day, through select wholesale programs. The private bank column below shows published industry norms, so your own bank’s terms may differ. Ask that bank for its written guidelines.
Side-by-Side
| Factor | Private bank mortgage (industry norms) | Super jumbo bank statement (network) |
|---|---|---|
| Review basis | Relationship, assets, and income as the bank defines them | Deposits over 12 or 24 months after an expense ratio |
| Who holds the loan | Typically the bank, in portfolio | Portfolio non-QM or bank portfolio program |
| Documentation | Bank-specific, often asset-heavy | Consecutive statements; P&L and asset paths also exist |
| Property types | Set by the bank; varies | Primary, second home, investment; second homes 1-unit only |
| Entity vesting | Often individual or trust; varies by bank | Investment property can be business-purpose; entity use subject to program terms |
| Reserves | Often tied to assets held at the bank | 3, 6, or 9 months by size, plus more per extra financed property |
| Timeline | Depends on the banker and internal approvals | Depends on file completeness and case-by-case review at the top |
| Relationship requirement | Often expected | None required |
Nothing in this table is pricing. The private bank column reflects published industry norms. The third column reflects terms through select wholesale programs, subject to full underwriting.
Key Terms Defined
Super jumbo: a market label for very large jumbo loans, with no legal definition.
Private bank mortgage: a relationship-based loan from a bank’s private-banking arm, usually held in the bank’s own portfolio.
Bank statement loan: a loan that estimates income from deposits over a stated period instead of from traditional personal-income documentation.
Cash-out refinance: a new, larger loan that pays off the old one and returns the difference.
Seasoning: the minimum time you must hold a property or loan before certain transactions are allowed.
Expense ratio: the share of business deposits removed before the rest counts as income.
How a Bank Statement File Actually Reads Income
Qualifying income is eligible deposits divided by the statement months, after an expense ratio. On business statements the ratio depends on the type of business and how many employees it has. Service businesses with no employees carry the lowest ratio. Larger staffs and any product business carry higher ones. An accountant-provided ratio or a profit-and-loss method is also available, subject to program limits. The borrower needs at least 25% ownership of the business.
Transfers from your own business into your personal account count in full. That detail saves many files that look thin on paper. Statements must be consecutive. A transaction history printout does not replace them.
The ending balance is not the basis. The lender is reading the flow of deposits, not the pile at the end.
Credit floors run 660 on the portfolio program and 680 on the bank program, rising to 700 above the super-jumbo line. Debt-to-income can reach 50%, all through select wholesale programs and subject to full underwriting.
Purchase vs. Cash-Out: Where the Leverage Steps Down
Cash-out trails purchase because the lender is lending against equity you already hold, and the proceeds are not tied to a new acquisition. The ladder below uses a primary residence. Second homes and investment property run roughly five points lower in the same bands. Every figure is a ceiling through select wholesale programs, subject to full underwriting.
| Loan size | Purchase | Cash-out | Credit |
|---|---|---|---|
| $300K–$1M | 90% | 80% | 680+ |
| $1M–$1.5M | 85% | 80% | 700+ |
| $1.5M–$2M | 85% | 75% | 720+ |
| $2M–$3M | 80% | 70% | 720+ |
| $3M–$3.5M | 75% | 65% | 720+ |
| $3.5M–$4M | 75% | 65% | 760+ |
Above $4,000,000 the picture changes. The bank portfolio program’s ladder begins there: 65% on a purchase and 60% on a cash-out between $4,000,000 and $5,000,000, on review. Every file at that size is reviewed case by case before submission. Treat any figure there as a starting point for conversation, not a flat “up to.”
Private banks do not publish a matching ladder. Their cash-out limits are set by the bank, and they often lean on pledged assets or the depth of the relationship.
The Two-Limit Rule
A bank statement loan has two separate ceilings, and either one can cap you.
1. Income capacity. Deposits after the expense ratio must support the debt-to-income limit. A strong equity position does not fix thin deposits.
2. Equity capacity. The leverage ladder caps the loan against the appraised value. Strong deposits do not raise the ceiling.
Picture a founder buying a primary residence in the $2M–$3M band. Deposits comfortably support the loan, so income is not the limit. The purchase ceiling of 80% is. Now picture the same founder cashing out on that home a year later. Income is unchanged, but the cash-out ceiling drops to 70%. Same borrower, same deposits, different binding limit.
When a Private Bank Mortgage Is the Better Fit
A private bank mortgage wins when the relationship is the asset. Think of a borrower who already keeps a large share of liquid wealth at one institution, wants one point of contact, and values a banker who can make a judgment call on an unusual file.
It also fits borrowers whose income is lumpy but whose balance sheet is large. A bank that sees everything can underwrite the whole picture without converting deposits into a monthly figure.
The tradeoffs are real. Approval can depend on the individual banker and the bank’s balance sheet at that moment. Products may be tied to a deposit or investment relationship. And if that bank says no, the file has nowhere else to go. Terms and documentation vary from one institution to the next, so ask for the written guidelines before you commit to a path.
When a Super Jumbo Bank Statement Loan Is the Better Fit
This option wins when deposits are the proof and you want to compare programs, not depend on one bank. Founders, physicians, attorneys, entertainers, and athletes often show large write-offs on returns. That is a common reason self-employed borrowers move to deposit-based qualification.
Three situations favor it. First, traditional income documentation understates income. Second, you do not want to move assets to a single bank. Third, you want structure options: interest-only on a portfolio program, or asset paths that qualify on liquid assets divided by 36, 60, or 84 months on primary and second homes.
On the asset side, assets-only qualification needs U.S. liquid assets equal to the loan plus closing costs, with no DTI test. Retirement accounts count at 70%, or 80% at age 59.5 and older. Business funds, gifts, and cryptocurrency never count.
The tradeoffs: overlays tighten above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property. That means a 700 credit floor as the minimum, a 0x30x24 housing history, 48-month seasoning on any credit event, U.S. citizens and permanent residents only, and no rural property. The credit column in the ladder above sets the tier for each band, so a primary-residence file between $3.5M and $4M needs 760+, not just 700. Cash-out proceeds cannot satisfy reserves at that size.
Interest-only is a purchase and rate-term structure, topping out at 85% with a 700 floor on the portfolio program. It never raises a cash-out ceiling.
Cash-Out Specifics That Trip Files
Cash-out is unlimited in proceeds at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000. The bank program publishes no cap. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
A broker sees the same friction repeatedly. Borrowers quote the purchase ceiling to themselves and then discover the cash-out column is five to ten points lower. Large irregular deposits, such as a real estate sale or a transfer between accounts, also need a clear paper trail, because a lender will not count non-income deposits as income. Document the source before the file goes in.
Timing matters too. Buying first and cashing out later is a real sequencing strategy, but seasoning rules apply. For how reserves behave across that sequence, see Lendmire’s piece Super Jumbo DSCR vs Bank Statement Reserves on a $3M Purchase vs Cash-Out.
Owner-Occupied vs. Investment: A Short Regulatory Note
Occupancy changes which rules apply. The CFPB’s Truth in Lending summary notes that Regulation Z exempts credit extended primarily for a business or commercial purpose. One practitioner guide from Doss Law adds that credit to acquire, improve, or maintain non-owner-occupied rental property is treated as business-purpose, but the exemption is lost if the owner expects to occupy the property more than 14 days in the coming year, unless it has more than two units. A cash-out on a rental whose proceeds go to personal use can also be treated as consumer-purpose. That is why bank statement documentation is common on owner-occupied files, while true rentals are often qualified on the property’s rent instead. Lendmire’s complete DSCR loans guide covers that property-based path.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Which One Should You Run? A Decision Table
| Your situation | Likely better fit |
|---|---|
| Large liquid assets already at one bank, want one banker | Private bank mortgage |
| Conventional personal-income paperwork understates income, deposits are strong | Super jumbo bank statement |
| Irregular income, large balance sheet | Run both |
| Need interest-only on a purchase | Super jumbo bank statement (portfolio program) |
| Loan above $4,000,000 | Case-by-case review on either path |
A Balanced Verdict
Neither option beats the other across the board. A private bank mortgage rewards concentration: one institution, one relationship, one judgment call. The deciding variables are which side of your file is stronger and whether you are buying or cashing out, because the cash-out ceiling is the number that most often surprises a high-balance borrower.
Sizes run from $300,000 to $30,000,000 across two wholesale programs, and anything above $4,000,000 is reviewed case by case. Consumer mortgage lending through Lendmire is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA.
Frequently Asked Questions
Does cash-out always have lower leverage than a purchase?
At nearly every size band on the network ladder, yes, by a margin that varies by program and property type.
Can business-account transfers count as income?
Transfers from your own business into your personal account count at 100% on the programs in the network. Statements must be consecutive, and deposits that are not income, such as proceeds from a property sale, are not counted.
Is “super jumbo” a defined loan type?
No. The conforming loan limit sets the line, and anything above it is jumbo. Super jumbo is an industry label, so the underwriting rules come from the lender or investor, not a regulation.
Can I use assets instead of deposits?
Yes, on primary and second homes. An asset allowance divides liquid assets by 36, 60, or 84 months. Assets-only needs liquidity equal to the loan plus closing costs, with no DTI test. Retirement accounts count at 70%, or 80% at 59.5 and older.
What changes above $4,000,000?
Every file is reviewed case by case before submission. The bank portfolio program’s ladder takes over there, with 65% on a purchase and 60% on a cash-out up to $5,000,000, on review, and lower bands above that.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
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References
1. CFPB – Truth in Lending Act summary
2. Doss Law – Business Purpose Exemption
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Super Jumbo Bank Statement Cash-Out After a Private Bank Decline · Private Bank vs Super Jumbo Bank Statement Cash-Out for Irregular Income · How to Consolidate Debt With a Super Jumbo Bank Statement Cash-Out
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.