The Quick Read: A bank statement refinance at this size is reviewed around twelve or twenty-four months of account deposits after an expense adjustment, instead of traditional personal-income documentation, and the loan is sized by appraised value, leverage that steps down as balances rise, your credit, and your reserves. The home must be worth well above the loan, because leverage at this size is far lower than on smaller files.
- Deposits, assets, or property cash flow replace traditional personal-income documentation as the proof of income, through select wholesale programs, subject to full underwriting.
- A loan at or just under $4,000,000 sits in a different leverage band than a loan above it.
- Every loan above $4,000,000 is reviewed case by case before submission.
- The credit score you need depends on the band and the program, and reserves of nine months are typical at this balance.
- Cash-out has its own, lower leverage ceiling, and cash-out proceeds cannot count toward reserves.
A $4 Million Loan Is Not a $4 Million Home
Start by separating two situations that sound alike. If your mortgage balance is $4 million, the home is probably worth far more, and leverage limits decide whether the refinance fits. If your home is worth $4 million, the loan is much smaller, and you sit in an easier leverage band.
This article covers the first case. At this size, bank statement files are a specialty product. Some self-employed borrowers have heavy write-offs, such as depreciation, payroll, and contractor costs. Their taxable income looks small next to their cash flow. A bank statement program reads the deposits instead.
Bank statement loans are a large slice of the non-QM market. Non-QM simply means the loan sits outside the standard qualified-mortgage box.
Across Lendmire’s wholesale network, two program types handle these files. The portfolio non-QM program carries bank statement loans to $6,000,000. The bank portfolio program carries twelve-month-statement files to $30,000,000 on its own size ladder. Its ladder starts at $3,000,001 on investment property, $4,000,001 on a primary residence and $5,000,001 on a second home, and it overlaps the portfolio program up to $6,000,000.
Key Terms Defined
Non-QM loan: A mortgage that does not follow the standard qualified-mortgage documentation rules, so lenders can verify income in other ways.
Bank statement loan: A non-QM loan that turns your account deposits into qualifying income.
Eligible deposits: Deposits that come from your work or business, after transfers, refunds, and loan proceeds are removed.
Expense ratio: The share of business deposits assumed to go to costs, which the lender subtracts before counting income.
Super jumbo: A loan above the size most lenders treat as standard jumbo. The exact line varies by lender.
Seasoning: The waiting period after a credit event before a lender will consider you again.
Cash-in-hand cap: The ceiling on the cash you can take out at closing on a cash-out refinance.
How Do Deposits Become Qualifying Income?
Deposits become income through a short formula: eligible deposits, adjusted for ownership share and an expense ratio, divided by the months reviewed. Personal account deposits generally count in full. Business account deposits are reduced by the expense ratio. The result is a monthly income figure that feeds your debt-to-income test.
Here is the process step by step:
1. Choose the lookback. Most programs accept twelve or twenty-four consecutive months of personal or business statements. The bank portfolio program uses twelve. Statements must be consecutive. A transaction history never substitutes for them.
2. Check ownership. Business statements need at least 25% ownership. Income is prorated to your share.
3. Apply the expense ratio. Across our wholesale network, the fixed ratios are 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio or a profit-and-loss method, capped at 80%, can replace the fixed ratio.
4. Divide by the months. The result is your monthly qualifying income.
5. Run the debt-to-income test. Debt-to-income can reach 50% through select programs, subject to full underwriting.
A worked picture without dollar amounts: say you own a business with three employees, so the 40% ratio applies. Only 60% of your eligible business deposits count as income. Now say you move profits from that business into your personal account each month. Those transfers count at 100% on a personal statement.
This is why many founders route business draws through a personal account. It is also why deposit hygiene matters more than volume.
What Leverage Fits a Loan at This Size?
Leverage at this size is far lower than on a typical mortgage, and each occupancy type has its own ladder. These figures are ceilings through select wholesale programs, subject to full underwriting. Every loan above $4,000,000 is reviewed case by case before submission, so treat the rows above that size as starting points, not offers.
| Occupancy and loan size | Program | Rate-and-term | Cash-out |
|---|---|---|---|
| Primary residence, $3.5M–$4M | Portfolio, super-jumbo overlays | 70% | 65% |
| Primary residence, $4M–$5M (on review) | Bank portfolio | 65% | 60% |
| Second home, $3.5M–$4M | Portfolio, super-jumbo overlays | 60% | 55% |
| Second home, $4M–$5M (on review) | Portfolio, super-jumbo overlays | 60% | 55% |
| Investment property, $3.5M–$4M | Bank portfolio | 60% | 55% |
| Investment property, $4M–$5M (on review) | Portfolio, super-jumbo overlays | 60% | 55% |
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. The bands are loan amounts, not purchase prices. To see where you land, work out the loan first, then read the band. A 65% ceiling means the appraised value must be roughly 1.5 times the loan. That is the gap between a $4 million mortgage and the home behind it.
Read the credit score as what the top cell of a band needs, not as a program floor. On a primary residence, the $3.5M–$4M cell needs 760 or higher. The bank portfolio cells need 680 or higher on a primary residence above $4M and on a $3.5M–$4M investment property. The portfolio program’s $4M–$5M cells for second homes and investment property need 760 or higher. A lower score takes a lower leverage cell inside the same band. Never let a primary residence number describe a rental.
Interest-only structures exist, but they do not raise these ceilings. On the bank portfolio program, interest-only tops out at 60% leverage or the band’s ceiling, whichever is lower. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Credit, Reserves, and the Super Jumbo Overlays
Program floors differ. The portfolio program sets a 660 floor on smaller files and 700 above the super-jumbo line. The bank portfolio program keeps its own 680 floor at every size. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, the portfolio program applies a stricter overlay package, which includes:
- 700 credit floor
- 0x30x24 housing history, meaning no late mortgage payments in two years
- 48-month seasoning after any credit event
- U.S. citizens and permanent residents only
- No non-occupant co-borrowers
- No rural property, with a ten-acre maximum
Reserves are liquid funds left after closing. Typical requirements are three months to $500,000, six months to $1,500,000, and nine months above that. Add two months per additional financed property, to a twelve-month maximum. First-time investors need twelve. Cash-out proceeds cannot satisfy reserves at this size.
Cash-Out or Rate-and-Term?
Rate-and-term pays off the old loan and nothing more. Cash-out pays it off and hands you the difference. At this size the two sit on separate leverage columns, as the table shows, and cash-out sits lower.
Proceeds are unlimited at or below 60% leverage. Above 60%, the portfolio program caps cash-in-hand at $1,500,000. The bank program publishes no cap. Expect a use-of-proceeds trail either way. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
When Does the General Rule Break?
The general rule is that your deposits carry the file. These cases bend it:
- Rental property that carries itself. When rent covers the payment, a property-based loan can fit better than any personal-income program. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines. Select lenders in the network offer programs below 1.00 coverage, but leverage and terms adjust. The complete DSCR loans guide explains the mechanics.
- Multiple owners or businesses. Deposits are prorated by ownership. Commingled accounts, where personal and business money mix, complicate the review.
- Entity-owned property. Vesting in an LLC may be allowed on investment files, depending on program guidelines.
- Condos. Warrantable condos run to 85% and non-warrantable to 80% at lower sizes. Those caps do not override the super-jumbo ladder.
- Texas home-equity loans. A 50(a)(6) loan takes a five-point leverage reduction and stops at $3,000,000 on the portfolio program, so a $4 million cash-out through that route does not work.
- Higher bands. Above $6,000,000 the bank portfolio program stands alone, with its own ladder.
Bank Statements, Asset Paths, or DSCR?
Pick the path that matches how you actually hold wealth. The options below qualify you on different things.
| Path | Reviewed on | Best when |
|---|---|---|
| Bank statements | Deposits after expense ratio | Cash flow is strong, traditional personal-income documentation is not |
| Asset allowance | Liquid assets over 36, 60, or 84 months | Large liquid portfolio, uneven income |
| Assets-only | Liquid assets versus the loan | Wealth is liquid, no DTI test wanted |
| DSCR | Property rent versus payment | The property is a rental |
For asset allowance, the divisor is 84 months for standalone use or any loan above $3,500,000, so it applies to a $4 million file. It covers primary and second homes only, at 80% maximum. Assets-only needs U.S. liquid assets equal to the loan 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 up. Business funds, gifts, most trusts, unvested stock, and cryptocurrency never count.
Is “Non-QM” the Same as Undocumented?
No. Non-QM is a documentation category, not an absence of review. A lender making a covered consumer loan must reasonably and in good faith determine that you can repay it, based on verified information. Bank statements are one way to meet that standard.
Investment property files are different. 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. Per Regulation Z § 1026.3, credit to acquire, improve or maintain a non-owner-occupied rental is deemed business purpose, but a home you expect to occupy more than 14 days a year does not get that treatment.
Two more myths:
- You do not choose your expense ratio. The program sets it. A documented lower ratio from your accountant is sometimes accepted.
- There is no fixed $4 million limit. Size lines come from each program’s overlays, not from regulation.
How the Deal Works, Step by Step
1. Pull twelve or twenty-four months of statements for the accounts you want counted.
2. Mark and explain unusual deposits before anyone asks.
3. Choose personal, business, or a mix, based on ownership and the transfers you make.
4. Share credit, assets, and the payoff statement. Reserves must be documented and sourced.
5. The broker matches the file across the wholesale programs. Eligibility depends on the loan band, occupancy, and credit.
6. Order the appraisal. At this value, appraisal and comparable sales support matter more than at lower balances.
7. Underwriting issues conditions. You answer them with documents. Above $4,000,000, the case-by-case review comes before submission.
Common Mistakes, and Who Should Skip This Route
Four mistakes come up again and again:
- Counting transfers between your own accounts as income.
- Mixing personal and business spending in one account.
- Assuming a cash-out can fund your reserves.
- Assuming 90% leverage applies to every file. It never applies above $1,000,000. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Skip this route if your traditional income documentation already supports the loan. Non-QM loans generally price above agency loans, so a standard path costs less when you can document that way. 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
Can I use business statements and personal statements together?
Often yes, when ownership and account purpose are clear. Business deposits take the expense ratio. Transfers from your own business into your personal account count at 100%. Programs differ on how they treat mixed files, so the broker matches the structure to the program.
Can I put the property in an LLC?
It depends on the program and the occupancy. Entity vesting is more common on investment property than on a primary residence.
How are one-time large deposits treated?
They are excluded unless you document them. An invoice, contract, or sale record can show the deposit is recurring business income. Without that, the underwriter removes it from the total.
Does a bank statement refinance carry a prepayment penalty?
It depends on the program. DSCR loans commonly carry multi-year prepayment penalties. Bank statement programs vary, so check the structure before you commit to a loan.
What if my credit is below 700 or I had a recent credit event?
It depends on the program. The portfolio program’s super-jumbo overlays set a 700 floor and 48-month seasoning after any credit event. The bank portfolio program keeps a 680 floor at every size. A lower score also takes a lower leverage cell inside the same band, so reviewing your loan band with a broker first shows which program fits.
Next Steps
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. 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. Lendmire is a broker, not a lender, and nothing here is a commitment to lend.
Above $4,000,000, the shape of your deposits and the size of your equity usually matter more than any single program rule.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. CFPB Regulation Z § 1026.3 (with commentary)
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 Choose Between 12 and 24 Months of Bank Statements · How to Finance a Golf Community Home With Bank Statements · How Business Owners Qualify for a Jumbo Mortgage With Bank Statements
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.