The Quick Read: A $7.5 million refinance on bank statements runs through a bank portfolio jumbo program that reads twelve months of deposits instead of traditional personal-income documentation. Through select wholesale programs, subject to full underwriting, that program tops out at roughly 60% LTV on a primary residence rate-and-term refinance and 55% on a second home or investment property, and every file at this size is reviewed case by case before submission. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
- Qualifying income is eligible deposits, less an expense ratio, divided by the statement months.
- Leverage is much lower than at smaller sizes, so equity matters more than income.
- Credit floor is 700 at this size, with a 0x30x24 housing history.
- Reserves run 9 months, and cash-out proceeds cannot count toward them.
- The documentation lane (deposits, assets, or property rent) decides whether the file fits.
What Does a Bank Statement Refinance Actually Test?
A bank statement refinance tests cash that moved through your accounts. It does not test the income line on your tax return. That is the whole point for founders, physicians, attorneys and investors whose returns show depreciation and write-offs instead of what they actually earned.
Lenders in this space call these non-QM loans. They do not fit the standard mortgage box, so the underwriter builds income from deposits. Scotsman Guide’s non-QM coverage describes a self-employed borrower without a W-2 supplying 12 to 24 months of personal or business statements. It also notes that a standard expense factor, such as 50%, can be applied, or that a profit-and-loss statement or a third-party tax professional’s expense statement can replace it.
This is not a no-paperwork loan. The file is reviewed on documented income under the applicable program, subject to lender guidelines. Credit, reserves, the appraisal and the payoff of the existing lien all get reviewed.
Why $7.5 Million Changes the Program
At this size you are far outside agency territory. The current baseline conforming limit is $832,750 for a one-unit property, and the high-cost ceiling is $1,249,125, per FHFA figures reported by Calculated Risk. Your loan is many times that, so it is a portfolio execution.
Across Lendmire’s wholesale network, two program types handle bank statement files. A portfolio non-QM program carries loans to $6,000,000. A bank portfolio jumbo program carries twelve-month-statement files up to $30,000,000 on its own size ladder. That ladder begins above $4,000,000 and overlaps the first program to $6,000,000. Above $6,000,000 it stands alone, so a $7.5 million request lands there.
Two points follow. First, the loan amount is the number that sets the leverage band, not your income. A stronger income does not buy a higher LTV. Second, everything above $4,000,000 is reviewed case by case before submission. Treat every figure below as a ceiling, not a promise.
How Deposits Become Qualifying Income
Underwriters turn deposits into income in a fixed sequence. The steps below reflect how most bank statement programs treat a self-employed borrower.
1. Pick the statement set. The bank program uses 12 consecutive months. The portfolio non-QM program accepts 12 or 24. Statements must be consecutive, and transaction histories never substitute for them.
2. Choose personal or business accounts. Business statements require at least 25% ownership of the business. If you own less than 100%, income is prorated to your share.
3. Scrub the deposits. The underwriter removes transfers between your own accounts, loan proceeds, refunds and one-time windfalls. What remains is the eligible deposit total.
4. Apply the expense ratio on business accounts. The underwriter applies a fixed expense ratio that varies with the size and type of the business, and the fixed figure can be replaced by an accountant-provided ratio. A profit-and-loss method is also an option, though it is capped.
5. Count owner transfers in full. Transfers from your own business into your personal account count at 100%, because the business expense was already absorbed before the money moved.
6. Divide by the statement months. That gives monthly qualifying income.
7. Compare to obligations. Debt-to-income can run up to 50%.
Here is how the expense ratio moves the number, shown per 100 of eligible monthly business deposits.
| Expense method | Income counted per 100 deposited |
|---|---|
| Fixed 20% (service, no staff) | 80 |
| Fixed 40% (small staff) | 60 |
| Fixed 50% (larger staff or product-based) | 50 |
| Profit-and-loss method | Capped at 80 |
The gap between 50 and 80 is the reason accountant-prepared ratios matter on large files. A documented lower ratio does not guarantee a better outcome, but it gives the underwriter something to approve against.
Leverage, Occupancy and Appraisal Math
At $7.5 million, leverage depends on occupancy. These are ceilings through select wholesale programs, subject to full underwriting, and on review or case by case at this size.
| Occupancy | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| Primary residence | 60% | 60% | 55% |
| Second home | 55% | 55% | 50% |
| Investment property | 55% | 55% | 50% |
These figures apply in the $6M to $10M band. Anyone who read that 80% or 90% is available has seen figures from smaller loan bands. Nothing above $1,000,000 reaches 90%.
The appraisal is where these files get tight. At 60% on a primary residence rate-and-term refinance, the property must appraise at about 1.67 times the loan. At 55% the multiple is about 1.82. A short appraisal does not just shave a little off the loan. It can break the file, because the LTV band is fixed.
Interest-only exists on the bank program up to 60% LTV, or the band’s ceiling if that is lower. It applies to purchase and rate-and-term files. For a second home or investment refinance in this band, the interest-only ceiling is therefore 55%. It never raises a cash-out ceiling. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Rate-and-Term or Cash-Out at This Size?
Rate-and-term is the cleaner ask. It pays off the existing lien and closes costs, and nothing more. It also carries the higher ceiling: 60% on a primary residence versus 55% for cash-out.
Cash-out brings two extra questions. The bank program has no published cash-out cap, but each file is reviewed case by case. On the portfolio non-QM program, cash-in-hand is limited to $1,500,000 above 60% LTV, and unlimited at or below it. Either way, super-jumbo overlays say cash-out proceeds cannot satisfy reserves. If you plan to use the money to build liquidity, that money does not help the file. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Credit, Reserves and the Overlays Above the Super-Jumbo Line
The overlays apply above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property. At $7.5 million, all of them apply.
- A 700 credit floor.
- A 0x30x24 housing history, meaning no 30-day lates in 24 months.
- 48 months of seasoning after any credit event.
- U.S. citizens and permanent residents only.
- No non-occupant co-borrowers.
- No rural property, and ten acres maximum.
Reserves run 9 months above $1,500,000. Add 2 months for each additional financed property, up to a 12-month maximum. First-time investors need 12 months. Reserves documentation is a common reason files stall, because investors count business funds, gifts or crypto that never qualify. Retirement accounts count at 70%, or 80% at age 59.5 and over. Business funds, gifts, unvested stock and cryptocurrency never count.
Where the Rule Breaks: Edge Cases
Most refinances in this band follow the path above. These do not.
Commingled accounts. If business and personal deposits run through one account, the underwriter cannot apply the right treatment to each. Separate them before submission or expect a long list of documentation requests.
Business under 25% ownership. Business statements are off the table. You need personal-account statements or another path.
Falling deposits. A simple average pulls qualifying income down. A year in which deposits dropped in the second half is often a better fit for an asset path than a pure deposit path.
Large one-time deposits. A sale of a business interest or a distribution gets stripped as non-recurring. If you need it counted, it belongs in an asset calculation, not an income one.
Condotels. Condotel collateral tops out at 65% on cash-out through most programs and 50% on the bank program, well below the ladder above.
Texas 50(a)(6) home-equity loans. These take a 5-point LTV reduction and stop at $3,000,000 on the portfolio program, so they do not apply at this size.
Investment property. A rental refinance is a business-purpose credit. Under the CFPB’s text of the Regulation Z exemption, credit extended primarily for a business purpose is exempt, and the creditor determines the primary purpose in each case. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A primary residence or second home is a consumer-purpose file and is reviewed that way.
Deposits, Assets or Rent: Which Lane Fits?
Bank statements are one of three ways to document a file this size. Choosing the right one matters more than polishing the wrong one.
| Path | What it tests | Best fit |
|---|---|---|
| Bank statements | Eligible deposits after expense ratio | Strong, steady business cash flow |
| Asset allowance | Liquid assets divided by 36, 60 or 84 months | Large liquidity, lumpy income |
| Assets-only | Liquidity equal to loan plus costs | Wealth held in cash and securities |
| DSCR | Property rent against its obligation | Stabilized rental, strong lease income |
The asset allowance divides liquid assets by 36 months (supplemental, DTI at or below 60%), 60 months (supplemental, DTI above 60%) or 84 months (standalone, or any loan above $3,500,000). It applies to primary and second homes only, with an 80% maximum. Assets-only needs no DTI. U.S. liquid assets must equal the loan amount plus closing costs plus sixty months of any net loss on other residential property.
On a stabilized rental, a DSCR file may fit better. Bank statement debt stacks onto your personal DTI, while DSCR is measured property by property. Lendmire’s explainer DSCR Loan Vs Bank Statement Loan For Investors walks through the trade-off, and the complete DSCR loans guide covers coverage ratios and program fit. Select lenders in the network also offer programs that review sub-1.00 coverage, but LTV and terms adjust when they do.
A Worked Scenario: Same House, Two Borrowers
Say two founders each want to refinance a $7.5 million primary residence, rate-and-term. Both have 720 credit and clean housing histories.
The first runs a business with more than five employees. Her fixed expense ratio is 50%, and her accountant cannot document a lower one. Her income is what remains after that haircut. Her DTI sits near the 50% limit once the new payment is counted. The file is reviewed case by case, and the program may still fit, but there is little cushion.
The second owns a services firm with no employees and moves business transfers into his personal account. Those transfers count in full. His qualifying income is far higher relative to the same obligation, and his DTI sits well inside the limit.
Both are still capped at about 60% LTV on review. The second borrower’s income helps him clear DTI, but it does not raise his leverage. Income decides whether you clear the gate. Equity decides how much you can borrow. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Documentation Checklist for This Size
Clean files have fewer preventable gaps. Gather these before submission.
- Twelve consecutive months of statements for every account used, with all pages.
- A written explanation for every large transfer or non-routine deposit.
- Proof of 25% or greater ownership for business accounts.
- An accountant letter or P&L if you want a ratio lower than the fixed factor.
- Liquid-asset statements for reserves, labeled by account type.
- The existing mortgage statement and a payoff request.
- A property file with the appraisal ordered through the lender’s channel.
Missing page counts and unexplained transfers account for most of the back-and-forth on large files.
If a Bank Declined You
A decline is often a program mismatch, not a credit verdict. Ask for the stated reason. If it was tax-return income, a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, may be a better fit for an investment property. If it was LTV, no change in the type of income review will help. If it was a credit event inside 48 months, wait or restructure. Wholesale placement is useful here because one broker can compare how several programs treat the same file.
When Not to Do This
Skip the bank statement route when your appraisal is likely to come in short, when deposits are falling, or when most of your wealth is in assets the program refuses to count. A smaller ask, a different documentation lane, or a longer wait may produce a better result. 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.
Key Terms Defined
Bank statement loan: a non-QM mortgage that qualifies a borrower on deposits in 12 or 24 months of statements instead of traditional personal-income documentation.
Expense ratio: the share of business deposits treated as costs, which reduces the income the lender will count.
Rate-and-term refinance: a new loan that replaces the old one and pays closing costs without taking out cash.
Cash-out refinance: a new loan larger than the payoff, with the difference paid to the borrower.
LTV: loan-to-value, the loan amount divided by the appraised value.
DTI: debt-to-income, total monthly obligations divided by qualifying monthly income.
Reserves: liquid funds that remain after closing, counted in months of the monthly obligation.
Case-by-case review: a manual lender review before submission, used on every loan above $4,000,000.
Frequently Asked Questions
Can a $7.5 million refinance really be done on bank statements?
Yes, through the bank portfolio jumbo program that carries files up to $30,000,000, subject to full underwriting. The loan is reviewed case by case before submission, and leverage is held to the low-60% range or below. The portfolio non-QM program stops at $6,000,000, so it does not cover this size.
How many months of statements are needed?
The bank program uses 12 consecutive months. Statements must be complete and consecutive, and transaction histories never substitute for them.
Do the 90% LTV figures I see online apply here?
No. Leverage steps down with loan size, and nothing above $1,000,000 reaches 90%. In the $6M to $10M band the ceilings are 60% on a primary residence rate-and-term, and 55% on a second home or investment property, on review. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Can I pull cash out and use it for reserves?
No. At this size, cash-out proceeds cannot satisfy reserves. Reserves must come from other liquid assets, and retirement funds count at 70%, or 80% at 59.5 and over.
Is a DSCR loan an alternative on a rental?
Often, yes. DSCR tests the property’s rent against its obligation, while a bank statement loan tests your deposits. If the property is a stabilized rental with strong lease income, DSCR avoids stacking the debt onto your personal DTI.
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 mortgage broker that places files through select wholesale programs, 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
Lendmire, NMLS# 2371349, is a mortgage brokerage focused on investor financing, arranging DSCR loans in 40 states plus Washington, D.C. — 41 markets total. Qualification is based on the property’s income rather than personal income documentation, subject to lender guidelines, making it a fit for LLC-held rentals and scaling portfolios. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Scotsman Guide — Rev Up the Engine for Non-QM Lending
2. Calculated Risk — FHFA announces baseline conforming loan limit
3. CFPB — 12 CFR 1026.3 Exempt transactions
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 Cash-Out Refinance Documentation Using Bank Statements · How to Cash-Out Refinance a Super Jumbo Acreage Property on Bank Statements · How to Cash-Out Refinance a Super Jumbo Home as a Private Bank Client
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.