The Quick Read: A super jumbo cash-out releases the new loan minus your old payoff, closing costs and prepaids, and the new loan is capped by a leverage ceiling that falls as the balance grows, so for a practice owner the check is usually a fraction of the equity, shaped by loan size, occupancy, reserves and the income path. Equity is not cash. Several limits stand between the two, and the lowest one wins.
- The ceiling steps down with loan size. Through select wholesale programs, a primary-residence cash-out tops out at 80% in the lowest bands and drops to 65% in the $3,000,000 to $4,000,000 range.
- On the portfolio program, cash in hand is unlimited at or below 60% LTV and capped at $1,500,000 above it.
- On super jumbo files, the cash you take out cannot count toward your reserves.
- Above $4,000,000, every file is reviewed case by case before submission, so any figure there is a starting point.
- Practice owners usually qualify on 12 or 24 months of bank deposits after an expense ratio, not on traditional personal-income documentation. All of this is subject to full underwriting.
A dentist, physician, attorney or veterinarian who owns a practice often holds a lot of home equity and a tax return that understates real income. That mix is common, and it is exactly where a bank-statement super jumbo cash-out fits. This guide walks the mechanics from start to finish: how the release is calculated, how underwriting treats a practice owner’s income, which structures exist, and where the general rule breaks.
Key Terms Defined
Super jumbo: a mortgage so large that lenders apply tighter overlays and lower leverage. There is no official definition. Each program draws its own line.
Cash-out refinance: a new, larger loan that pays off the old one and hands you the difference.
LTV (loan-to-value): the loan amount divided by the appraised value of the property.
Cash-in-hand cap: a dollar limit on the cash you can walk away with, separate from the LTV limit.
Reserves: liquid money you must still hold after closing, counted in months of the monthly obligation.
Seasoning: the waiting period a program wants between two events, such as buying a home and refinancing it.
Expense ratio: the share of business deposits a lender subtracts as operating costs before it counts the rest as your income.
Overlay: a lender’s extra rule layered on top of its base guidelines, usually at higher loan sizes.
What Is the Release Formula?
The release is plain arithmetic. Start with the appraised value. Multiply by the maximum cash-out LTV for your loan size and occupancy. That gives the largest new loan. Subtract your existing payoff, closing costs and prepaids. What remains is your cash. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Four steps do the work:
1. Value. The new appraisal sets it. Your estimate and your purchase price do not count.
2. Ladder row. Loan size, occupancy and credit score pick the maximum LTV.
3. Dollar cap. On the portfolio program, check whether you are above 60% LTV. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
4. Subtract. Take out the payoff (including accrued interest and any prepayment charge), costs and prepaids. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Here is the catch. Your old payoff does not move. If the appraisal comes in 5% low, the maximum loan drops by 5%, and that entire drop comes out of your cash. Picture a ceiling of 70%. A 5% low appraisal lowers the effective ceiling to 66.5% of the original value. That is 3.5 points of value gone from your check, with the payoff unchanged.
How the Ceiling Steps Down as the Loan Grows
Leverage shrinks as the balance grows. A borrower pulls a larger share of value on a $1.4 million loan than on a $3.5 million loan. Most programs we see in the wholesale network work this way, and the step-downs are real.
The table shows cash-out ceilings by loan size and occupancy. Every figure is a ceiling through select wholesale programs, subject to full underwriting. Credit requirements rise with the band, and 720 or higher is common in the middle bands.
| Loan size | Primary | Second home | Investment |
|---|---|---|---|
| Up to $1.5M | 80% | 75% | 75% |
| $1.5M–$2M | 75% | 75% | 75% |
| $2M–$2.5M | 70% | 70% | 70% |
| $2.5M–$3M | 70% | 60% | 60% |
| $3M–$4M | 65% | 55% | 55% |
| $4M–$5M, on review | 60% | 55% | 55% |
| $5M–$10M, on review | 55% | 50% | 50% |
| $10M–$30M, on review | 50% | 45% | 45% |
Read the pattern, not just the rows. Second homes and investment property run at or below a primary residence at every size. The gap is zero in the $2M–$2.5M band, five points in the $4M–$5M band, and as wide as ten points in the $2.5M–$3M and $3M–$4M bands. Only the lowest band reaches 80%, and only on a primary residence. Nothing above $1,000,000 gets near 90%.
Two programs sit behind these figures. A portfolio non-QM bank-statement program carries files to $6,000,000. A separate bank program begins above $4,000,000 and overlaps the portfolio program to $6,000,000. Its ladder is 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000. Above $6,000,000 the bank program stands alone.
Above $4,000,000, everything is case by case. Treat any percentage at that size as a starting point for a conversation.
Which Limit Binds First?
Five limits can cap your check, and the lowest one wins. Check them in this order.
- Equity ceiling. The ladder percentage times value, minus payoff. This is the one everybody thinks about.
- Cash-in-hand cap. On the portfolio program, proceeds are unlimited at or below 60% LTV. Above 60%, cash in hand stops at $1,500,000. The bank program publishes no cap, though its ladder still applies.
- Reserves. Programs ask for 3 months on loans to $500,000, 6 months to $1,500,000 and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors need 12.
- Credit and overlays. The floor is 660 on the portfolio program, 680 on the bank program, and 700 above the super jumbo line.
- Income and DTI. Debt-to-income can run to 50% on these programs.
The reserve rule deserves its own warning. Above the super jumbo line, cash-out proceeds cannot satisfy reserves. That line sits above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property. Overlays at that size also include a 0x30x24 housing history, 48 months of seasoning after any credit event, U.S. citizenship or permanent residency, no non-occupant co-borrowers, no rural property and a ten-acre maximum.
So plan your liquidity separately. Money you pull out at closing does not double as your safety cushion. Many first-time super jumbo borrowers miss this.
How a Practice Owner Qualifies
A practice owner usually is reviewed on deposits, not traditional personal-income documentation. Qualification runs on documented income under the applicable program, subject to lender guidelines. The reasoning is simple. Returns show income after depreciation, equipment write-offs and retained earnings. Bank statements show what actually moved.
Here is how the main path works. The lender reviews 12 or 24 consecutive months of personal or business bank statements (the bank program uses 12). It totals the eligible deposits, subtracts an expense ratio, and divides by the number of months. Statements must be consecutive. Transaction histories never substitute.
Business statements need at least 25% ownership. The expense ratio is where practice type matters:
- A lower expense ratio for a service business with no employees.
- A moderate expense ratio for a business with one to five employees.
- A higher expense ratio for a business with six or more employees, or any product business.
- An accountant-provided ratio, which can replace the fixed figure.
A solo practitioner and a group practice with a full staff land in very different places. Know your headcount before you run the numbers.
Personal-account statements work differently. Transfers from your own business into your personal account count at 100%. Many practice owners pay themselves through regular transfers, which makes the personal route cleaner. A profit-and-loss method also exists, capped at 80%.
Two asset-based paths help owners with big balance sheets. Asset allowance divides liquid assets by 36 or 60 months when it supplements income, or by 84 months when assets stand alone or the loan is above $3,500,000. It applies to primary and second homes only, with an 80% maximum. Assets-only needs no DTI. It needs U.S. liquid assets equal to the loan amount plus closing costs, plus sixty months of any net loss on other residential property.
Here is the practice-owner trap. Business funds never count as assets. Neither do gifts, cryptocurrency, unvested stock or trusts other than a revocable living trust. Retirement accounts count at 70%, or 80% at age 59.5 and older. Your practice operating account will not carry an assets-only file.
For the wider framework behind these programs, the complete DSCR loans guide covers the rental-income side.
Two Worked Examples
These are hypothetical. They show how the limits interact, not what any file will produce.
Run the numbers on a mid-band primary residence. The new loan lands in the $1,500,000 to $2,000,000 band, so the cash-out ceiling is 75%. The existing mortgage equals about half the home’s value. The release before costs is roughly a quarter of value. That is well under the $1,500,000 cash-in-hand cap, so the cap never binds. Reserves at the 6-to-9-month level and the expense ratio on the practice’s deposits decide whether the file works.
Consider a top-band primary residence. The new loan lands in the $3,000,000 to $3,500,000 band, so the ceiling is 65%. The existing mortgage equals about 30% of value. The release before costs is about 35% of value. On a home worth several million dollars, that can exceed the $1,500,000 cap, and now the cap binds first.
Three moves can change the answer. You can borrow less and stay at or below 60% LTV, where proceeds are unlimited on the portfolio program. You can ask whether the bank program, which publishes no cap, fits the file. Or you can accept the capped figure. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
The borrow-less-to-receive-more move sounds backwards. It is not.
Where the General Rule Breaks
Occupancy changes the ladder. A primary residence gets the highest percentage. In the $2,500,000 to $3,000,000 band, the table shows 70% on a primary residence against 60% on a second home or investment property. If the collateral is a rental, the lender also tests whether the rent can carry the larger obligation. The lower of the equity ceiling and the rent-supported loan wins. Lendmire’s article on how a super jumbo DSCR cash-out releases on a rental covers that lane.
Practice real estate in an entity. Many owners hold the building in an LLC that leases to their own practice. Whether a related-party lease counts, and how title in an LLC is treated, varies by lender program requirements. Ask the program team before you plan around it.
Seasoning. Programs differ on how long you must hold a property before a cash-out, and on which value they use after a recent purchase. Treat it as a question for each file. The 48-month waiting period after a credit event is one of several fixed overlays at super jumbo size.
Property type. Warrantable condos run to 85% and non-warrantable to 80%, but those ceilings are for purchase and rate-and-term files, not cash-out. Condotels are lower still. Second homes must be one unit. Rural property is capped at 80% on ten acres or less, never above $3,000,000.
Rate-and-term is a different animal. A refinance that only pays off the old loan and costs carries a higher ceiling than a cash-out at the same size. Once you take cash above payoff and costs, the cash-out ladder applies.
Where the super jumbo line sits. Nobody defines it by law. The only hard line in the market is the conforming limit. The Federal Housing Finance Agency set the baseline at $832,750 for a one-unit property in most of the country, with a ceiling of $1,249,125 in high-cost areas. Orrick’s summary of the announcement confirms the same figures. Those numbers define conforming loans only. Where super jumbo begins is each program’s call. In the wholesale network Lendmire works with, the tighter overlays start around $3,000,000 to $3,500,000, depending on occupancy.
What Practice Owners Do With the Cash
Common uses include a partner buyout, a second location, equipment, and clearing practice debt. Each use raises the same planning question: keep personal and practice money separate. Deposits from the practice should be traceable in your statements, and proceeds you spend on the practice should be documented.
That documentation matters beyond tidiness. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A cash-out on your own home usually runs as a consumer-purpose loan, and the practice only enters through how you use the money. Examiners weigh factors such as how closely the purpose matches your occupation and how large the transaction is, as the FDIC’s examination manual lays out. Where a particular loan lands is a question for counsel, not a broker.
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.
Cash-Out Versus the Alternatives
| Option | What it does | Best fit |
|---|---|---|
| Cash-out refinance | Replaces the first mortgage with a larger one | Equity is large and the old loan is not cheap to keep |
| Rate-and-term refinance | Replaces the loan with no cash back | Restructuring without taking equity |
| HELOC or second lien | Adds a loan behind the existing first | Keeping the current first mortgage in place |
| Business loan | Lends against the practice, not the home | Practice needs where home equity should stay untouched |
Which one wins depends on what the old mortgage looks like and how much you need. If you plan to keep the first mortgage, a second lien avoids the payoff step altogether. If you want one loan and one payment structure, cash-out wins.
Who This Fits (and Who It Doesn’t)
It fits owners with deep equity, strong deposits and a clean 12 or 24 months of statements. It fits those whose returns understate income. It also fits borrowers who can hold the reserves without leaning on the proceeds.
It fits less well if you own a newer practice with thin deposit history. It also fits poorly if you want maximum leverage, because the ceiling drops fast above the mid-$1M range. And if your wealth sits mostly in business funds, asset-based paths will not count them.
What to Prepare
Gather these before any conversation:
- Twelve or 24 consecutive months of personal or business statements, every page.
- Proof of ownership percentage in the practice.
- A recent mortgage statement showing payoff, including any prepayment charge.
- Your headcount, so the expense ratio is clear, or an accountant-provided ratio.
- A liquidity plan that does not count the cash-out itself.
Above $4,000,000, give the file extra runway. Every loan at that size is reviewed case by case before submission, and the review shapes the structure.
Frequently Asked Questions
Is there a cap on how much cash I can take?
On the portfolio program, proceeds are unlimited at or below 60% LTV. Above 60%, cash in hand is capped at $1,500,000. The bank program publishes no cash-in-hand cap, but its size ladder still limits the loan. Both are through select wholesale programs, subject to full underwriting. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Can the cash-out count toward my reserves?
No, not on super jumbo files. Reserves typically run 3, 6 or 9 months by loan size, so plan that liquidity separately from what you take at closing.
Can I qualify without traditional personal-income documentation?
Yes, on many programs. That means 12 or 24 months of consecutive bank statements, an expense ratio on business deposits, and at least 25% ownership for business accounts. Asset-based paths exist too.
Which occupancy gets the highest leverage?
A primary residence. In the lowest band it reaches 80% on a cash-out, against 75% for second homes and investment property. The gap varies by size: none at $2M–$2.5M, but ten points at $2.5M–$3M and again at $3M–$4M, according to the ladder above.
How does this compare with a HELOC?
A HELOC leaves your first mortgage in place and adds a second loan behind it. A cash-out replaces the first mortgage entirely. The right choice depends on what your existing loan looks like and how much cash you need.
Next Step
If you are financing a high-balance property on business or personal bank statements and want to see how the numbers work, Lendmire can help you compare super jumbo bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals. Lendmire is a broker, and its consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Nothing here is a commitment to lend.
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 41 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).
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
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References
1. FHFA – 2026 conforming loan limits
2. Orrick – FHFA announces increases to conforming loan limits
3. FDIC Consumer Compliance Examination Manual – Truth in Lending Act
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: Can a Business Owner Get a Super Jumbo Cash-Out on Profit-and-Loss Alone? · How to Cash Out a Super Jumbo Rental Using Business Deposits · How Much a Super Jumbo Cash-Out Releases on Business Deposit Income
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.