The Quick Read: Usually, yes, because a lender judges your file on the income, assets and equity you can document today, and a pending sale does not have to be part of that picture, though it also cannot be counted as money you already hold. A signed letter of intent or purchase agreement is not a verified asset, so the loan has to stand on its own.
- Qualification runs on bank statements, liquid assets, or rental cash flow on an investment property, subject to lender guidelines.
- Most files in this size range are sized by a leverage ladder that steps down as the loan grows.
- Above $4,000,000, every file is reviewed case by case before submission.
- Business account balances, gifts, crypto and unvested stock never count as assets.
- Documenting where the cash goes matters as much as getting it.
If you are a founder with a deal on the horizon, the real question is not whether the sale helps. It is which documentation lane fits you today, and how much equity the property can release at your loan size. Everything below is how Lendmire, a mortgage broker that shops multiple wholesale programs, sees these files. All figures are typical ceilings through select wholesale programs, subject to full underwriting and not a commitment to lend.
Key Terms Defined
Cash-out refinance: a new, larger loan on a property you already own, where you take the difference between the new balance and the old one as cash.
Super jumbo: a lender size tier for very large loans, not a legal category. Here it means balances from the low millions up to $30,000,000.
LTV (loan-to-value): the loan balance divided by the property’s appraised value, shown as a percentage.
Reserves: liquid money left over after closing, counted in months of the housing payment.
Seasoning: the waiting period a lender wants after a credit event or a purchase before it treats the file as clean.
DSCR (debt service coverage ratio): monthly rent divided by the monthly obligation on an investment property. A ratio above 1.0x means the rent covers the payment.
Why a Pending Sale Neither Blocks You Nor Helps You
A pending sale is not a barrier, but it is not collateral either. The lender sizes your loan on what is documented now: the equity in the property, the deposits in your statements, the verified assets in your name. It does not size the loan on a payout you expect.
Underwriters need third-party records for any income or assets they rely on. Under the federal repayment-capacity standard in 12 CFR 1026.43, a lender must use verified records of income or assets on a covered consumer mortgage. An expected payout is neither, so lenders write guidelines that leave it out.
That cuts both ways. A term sheet will not add a dollar of qualifying assets. But the pending deal also does not disqualify you, as long as your own file clears on its own merits and you disclose what changes before closing.
How Lenders See a Founder at Each Stage
The stage of the deal changes what a lender can count, not whether you can apply. Here is how the three stages usually sort out across the programs in the network.
| Stage | What a lender can count | What to expect |
|---|---|---|
| Talks, LOI or term sheet | Today’s deposits, assets, property equity | Normal file; sale proceeds not counted |
| Signed, not closed | Same as above | Disclose it; terms may need review |
| Closed, funds received | Verified, seasoned funds in your name | Asset paths open up; see below |
Two practical points follow. First, a material change before closing, such as ownership, employment or deposit pattern, needs to be disclosed and may restructure the file. Second, if the sale closes before your loan does, proceeds count only once they are verified and sitting in your own account.
For founders who expect to be flush soon, Lendmire’s piece on how a super jumbo cash-out refinance works after a sale covers the post-closing side. This article stays on the period before it.
Which Documentation Lane Fits a Founder?
Founders usually fit one of several documentation lanes, and the right one depends on how your income actually flows. Traditional personal-income documentation often understates a founder’s real cash flow, which is why the bank statement lane exists.
Bank statements. The lender reviews 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12 months. Eligible deposits are averaged across the window, so lumpy timing matters less than it does on a tax-return file.
Business statements need at least 25% ownership. Deposits take an expense ratio:
- A lower expense ratio applies to a service business with no employees.
- A higher ratio applies to a business with one to five employees.
- The highest ratio applies to a business with six or more employees, or any product business.
- Some programs accept an accountant-provided ratio, or a profit-and-loss method that is subject to a cap.
Transfers from your own business into your personal account count at 100%. Statements must be consecutive, and a transaction history never substitutes for them.
Assets. On primary and second homes only, an asset allowance divides your liquid assets by 36, 60 or 84 months. The 84-month version is the standalone path and applies to any loan above $3,500,000. Assets-only qualification needs no DTI test, but your U.S. liquid assets must equal the loan amount plus closing costs, plus sixty months of any net loss on other residential property.
Retirement accounts count at 70%, or 80% at age 59.5 and over. Business funds, gifts, unvested stock, cryptocurrency and most trusts never count. Founder equity in a private company is not a liquid asset.
Rental cash flow. On an investment property held for business purposes, the loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Personal income is not the test. Select lenders in the network also offer programs below 1.00 coverage, though leverage and terms adjust. For the mechanics, see the complete DSCR loans guide.
What Sets Your Number: Size, Leverage and Reserves
Loan size drives leverage more than anything else. The bigger the balance, the lower the percentage a lender will release. There are two programs behind these numbers. The portfolio non-QM program carries files to $6,000,000. The bank portfolio program carries twelve-month-statement files up to $30,000,000, and its ladder begins above $4,000,000, so the two overlap to $6,000,000.
Here are typical cash-out ceilings on a primary residence, through select wholesale programs, subject to full underwriting:
| Loan size | Max cash-out LTV | Typical credit floor |
|---|---|---|
| $300K–$1.5M | 80% | 680+ |
| $1.5M–$2M | 75% | 720+ |
| $2M–$3M | 70% | 720+ |
| $3M–$3.5M | 65% | 720+ |
| $3.5M–$4M | 65% | 760+ |
| $4M–$5M | 60%, on review | 700+ |
| $5M–$10M | 55%, on review | 700+ |
| $10M–$30M | 50%, on review | 700+ |
Above $3.5M on a primary residence, the super-jumbo overlay sets a 700 minimum. Where the ladder shows a higher tier for the band, such as 760+ at $3.5M to $4M, the higher tier is the one that applies. Second homes and investment property run about five points lower at each size. On a standard rental, for example, the cash-out ceiling is 75% in the $300,000 to $1,000,000 band. Every loan above $4,000,000 is reviewed case by case before submission, so treat those rows as starting points, not promises.
Some other limits to know:
- Credit: the portfolio program’s floor is 660, the bank program’s is 680, and both move to 700 above the super-jumbo overlay line. That line sits above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
- Debt-to-income: up to 50%.
- Reserves: 3 months up to $500,000, 6 months up to $1,500,000, and 9 months above that. Add 2 months per additional financed property, to a 12-month maximum. Above the overlay line, cash-out proceeds cannot satisfy reserves.
- Overlays above the line: a 0x30x24 housing history and 48-month seasoning after any credit event.
- Proceeds: unlimited at or below 60% LTV. Above 60%, the portfolio non-QM program caps cash in hand at $1,500,000. The bank program publishes no cap. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
That last point trips up founders more than any other. A large refinance at a higher LTV may not release the cash you expect on the portfolio program. A short-list comparison across programs catches that before you apply.
Moving Money From the Business to You
Owning a company does not make its bank account usable as your liquidity. A lender wants a clean paper trail from the entity to your personal account, and a plain explanation of what the cash is for.
The usual document stack looks like this:
1. Proof of business ownership, including your percentage.
2. Consecutive bank statements for the chosen window, with no gaps.
3. Asset statements showing your name and a current balance, if you use an asset path.
4. A use-of-funds letter. It states the source of the cash, the net proceeds expected, the receiving account, any percentage splits, and the liquidity you retain.
5. Records showing how any recent large transfers moved between accounts.
Moving funds around right before closing can complicate sourcing. Sort your money into three buckets before you apply: funds for closing, funds held as reserves, and funds you will not touch. Lendmire’s piece on cash-out rules founders face after a sale walks through how the buckets hold up afterward.
A Worked Founder Scenario
Consider a founder who owns 60% of a services company with three employees. Her traditional personal-income documentation shows modest income because the company reinvests heavily. She owns a primary residence that falls in the $2,000,000 to $2,500,000 loan band, and she has a letter of intent from a buyer.
Her lender will not look at the letter. It looks at twelve months of business statements, applies a 40% expense ratio for a one-to-five employee company, and checks ownership clears the 25% minimum. Transfers she made from the company to her personal account count in full. Her credit sits above 720.
In that band, the ceiling on a primary cash-out is 70% LTV through select wholesale programs, subject to full underwriting. Because 70% is above 60%, the portfolio non-QM program caps her cash in hand at $1,500,000. If she wants a bigger release than that, the bank portfolio program is worth comparing, since it publishes no cap. Her reserves requirement is 9 months, because she is above $1,500,000, and the cash-out cannot be counted toward it if the file crosses an overlay line. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Whether she wants this loan is a separate question. Taking it before a sale adds a larger obligation just as a buyer is doing diligence. Many founders prefer to see the post-sale picture first.
Cash-Out or Something Else?
A cash-out refinance is not the only way to get liquidity before an exit, and it is not always the right one. Here is how the options compare in general terms.
| Route | Best when | Watch for |
|---|---|---|
| Cash-out refinance | You have equity and want a lump sum | Lower LTV at larger sizes |
| Rate-and-term refinance | You want to restructure, not release cash | No cash in hand |
| Second lien or home equity line | You want to keep the first loan | Terms vary by lender |
| Wait until after closing | Sale is close and you can wait | Funds must be verified and seasoned |
| Equity-side liquidity (secondary sale, equity-backed loan) | Cash needed against company shares | A different process, outside mortgage lending |
Each option has its own paperwork and approval path, so ask each lender what it will actually count.
When This Does Not Fit
A super jumbo cash-out is the wrong tool in some cases.
- Your only qualifying source is an expected payout. Lenders will not size on it.
- The only liquidity you can show sits in a business account, which never counts as an asset.
- Your ownership in the company is under 25%, which usually blocks the business-statement lane.
- You plan to occupy a property you are treating as a rental, since occupancy changes how the loan is classified.
- You need a figure above the ladder for your loan size, especially above $4,000,000, where leverage is reviewed case by case.
- Your credit does not clear the floor for your band, or a recent credit event sits inside the 48-month seasoning window.
Does the Purpose of the Cash Matter?
Yes, and it affects how the loan is classified. 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. The CFPB’s official commentary on business-purpose credit turns on what the loan is for and how the property is used, including a 14-day occupancy test, so a property label alone does not settle it. If the cash will fund personal spending, flag that early so the loan is structured correctly.
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.
Frequently Asked Questions
Will a letter of intent or signed purchase agreement count toward my qualifying assets?
No. Lenders count only verified assets in your name, so an unclosed sale does not add to your file. If the sale closes before your loan does, the proceeds can count once they are documented and seasoned. Disclose any pending deal so the file can be structured around it.
Can my business account balance count as liquidity?
No. Business funds never count as assets on the asset-based lanes. On the bank statement lane, your business deposits can support income after an expense ratio, and transfers into your personal account count at 100%. Those are different tests, so choose the lane that fits how your money actually moves.
Is a super jumbo cash-out unlimited?
Only up to a point. On the portfolio non-QM program, proceeds are unlimited at or below 60% LTV and capped at $1,500,000 in cash above that. The bank portfolio program publishes no cap. Above $4,000,000, every file is reviewed case by case, so no figure should be treated as automatic. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Do I need to be a U.S. citizen?
Above the super-jumbo overlay line, files are limited to U.S. citizens and permanent residents. Below it, eligibility can differ by program. Lendmire’s consumer mortgage lending is licensed in 16 states, so where the home sits also affects what can be offered.
Should I borrow before the sale or wait until after?
It is a genuine toss-up that depends on your timing. Borrowing before gives you liquidity while the sale is pending, but it adds a large obligation during buyer diligence. Waiting opens the asset paths once funds are verified and seasoned, though your cash arrives later. Many founders compare both before deciding.
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. For investment property, Lendmire’s team can also run the same file on rental cash flow and show you which lane gives the strongest result, subject to lender guidelines and underwriting.
The founders who get the most out of these loans tend to treat the sale as a reason to document more carefully, not as a number to qualify on.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. eCFR, 12 CFR 1026.43 (ability-to-repay requirements)
2. CFPB, Official Interpretation of Section 1026.3 (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: How to Document a Super Jumbo Cash-Out Used to Invest as a Founder · How to Document a Super Jumbo Cash-Out Ahead of a Liquidity Event · How to Bridge a Purchase or Cash-Out on an SBLOC Into a Super Jumbo
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.