The Quick Read: You cannot transfer a private bank mortgage to another lender. That makes the switch a refinance, or a new purchase loan in place of the bank’s offer, and the new lender reviews your file on your deposits instead of your traditional personal-income documentation.
- The new loan is reviewed around 12 or 24 months of personal or business bank statements, through select wholesale programs, subject to full underwriting.
- Business deposits are reduced by an expense ratio. Transfers from your own business into a personal account count at 100%.
- Leverage steps down as the loan grows, and every loan above $4,000,000 is reviewed case by case before submission.
- Keep the old loan in place until the new one is confirmed. Never close the old arrangement first.
- Staying put is often right if you have clean, full documentation and your pricing depends on deposits held at the bank.
What Does “Switching” Actually Mean?
A private bank holds its jumbo loans on its own books. It usually underwrites them on traditional personal-income documentation and discounts the pricing for clients who keep deposits and investments with the bank. That discount is relationship pricing, and it is the main reason a private bank is hard to beat for a clean, fully documented borrower.
A super jumbo bank statement loan works differently. It is a non-QM loan, meaning it sits outside the standard Qualified Mortgage documentation box. The lender looks at what flows through your accounts instead of the income left after write-offs.
The two products solve different problems. Founders, physicians, attorneys, entertainers and investors often show strong deposits and modest taxable income. A private bank’s documentation box can exclude them, or the bank may decline the loan size or the property type. That is when borrowers start looking elsewhere.
“Super jumbo” has no federal definition. Each program draws its own line. For contrast, the 2026 baseline conforming limit for a one-unit property is $832,750, with a high-cost ceiling of $1,249,125, per the Orrick summary of the FHFA announcement. Those agency limits only mark where “jumbo” begins. They do not govern bank statement files.
Key Terms Defined
Private bank loan: A jumbo mortgage the bank keeps on its own books, often priced with a discount for deposits and assets held there.
Bank statement loan: A mortgage that is reviewed around eligible deposits over a set number of months instead of tax-return income.
Super jumbo: A loan size above a lender’s own high-balance line, since no official definition exists.
Expense ratio: The share of business deposits treated as operating costs and removed before income is calculated.
Payoff letter: The old lender’s written statement of the exact balance needed to retire the loan on a given date.
Why Do Borrowers Leave a Private Bank?
Borrowers leave for four practical reasons.
1. The documentation does not fit. Heavy write-offs lower taxable income, so a file built on returns understates what the business actually earns.
2. A decline or a constraint. The bank will not lend at the size, at the leverage, or on the property type the borrower wants.
3. Cross-selling and custody expectations. Some private banks tie the best terms to moving more assets over.
4. Concentration. A borrower may not want a single institution holding the loan, the deposits and the investments.
The tradeoff is real. The pricing discount can disappear when the loan leaves. Leaving usually makes sense when the bank’s box excludes you, or when it will not lend on your terms. It rarely makes sense just to chase a headline. If a private bank will lend what you need, on a property it likes, on documents it accepts, staying put may be the cheaper path.
Lendmire’s piece on how a super jumbo bank statement lender separates salary from deposits goes deeper on one of the most common sticking points in this move.
Can You Move the Loan, and When Is It Too Late?
The loan itself does not move. The new lender re-underwrites you from scratch, funds a new loan, and pays off the old note. The point of no return is the day the new loan funds and the payoff is sent. Before that day, you can walk away and keep the old loan. After it, the old loan is gone.
That is why sequencing matters more than anything else in this process. Qualify with the new lender first. Close out the old arrangement last. A credit line, a deposit account or a custody account tied to the old bank should stay open until the payoff is confirmed.
Across the wholesale network, lenders differ on guidelines. A file that does not fit one program may fit another. A broker can shop the same file across several programs, which a single bank cannot do.
Private Bank vs. Super Jumbo Bank Statement Loan
| Factor | Private bank loan | Bank statement loan |
|---|---|---|
| Income basis | Traditional personal-income documentation, full documentation | 12 or 24 months of deposits |
| Relationship needed | Often, for best pricing | No |
| Pricing driver | Deposits and assets held | Credit, leverage, property |
| Business income | Net of write-offs | Deposits less expense ratio |
| Loan size | Set by the bank’s policy | $300,000 to $30,000,000, through two wholesale programs |
How Does Bank Statement Income Actually Work?
The lender adds up eligible deposits over the statement window and divides by the number of months. This is the method Scotsman Guide describes: a self-employed borrower supplies 12 to 24 months of personal or business statements, and the lender applies an expense factor to the deposits.
Through select wholesale programs, the details look like this:
- Personal statements count eligible deposits directly. Transfers from your own business into your personal account count at 100%.
- Business statements require at least 25% ownership. The lender removes an expense ratio. Fixed ratios apply based on business type and size: a service business with no employees, a business with one to five employees, and a business with six or more employees or any product business each fall into a different tier. An accountant-provided ratio is another option.
- Profit-and-loss method. Income is capped at 80% of the P&L figure.
- Statements must be consecutive. A transaction history never substitutes for statements.
That gives a monthly qualifying income, which the underwriter then compares with your obligations. The DTI limit varies by program and file.
Deposits are scrubbed first. Transfers between your own accounts, loan proceeds and one-time windfalls do not count as income. The CFPB’s compliance guide notes that a creditor that sees an unidentified deposit must take steps to confirm it is the consumer’s income and not, for example, loan proceeds. Non-QM changes the documentation method. It does not remove the duty to verify.
What Are the Steps to Switch?
1. Inventory the private bank relationship. Pull the note and check for a prepayment penalty. Check whether pricing depended on deposit balances and whether an adjustable or interest-only period resets soon.
2. Pick the income method. Personal statements, business statements, or a mix. Use 12 or 24 months. Asset-based paths exist too, as covered below.
3. Calculate qualifying income. Total eligible deposits, apply the expense ratio for business accounts, then divide by the months in the window.
4. Scrub the deposits. Remove internal transfers and one-time items before anyone else does it for you.
5. Assemble the file. Expect complete consecutive statements, an appraisal, and proof of liquid assets. Investment properties may also need the 1007 rent schedule and the 1025 small residential income report.
6. Let underwriting weigh the file. Credit, reserves, property type, loan size and leverage are weighed against the program’s own overlays.
7. Confirm before you leave. Get the payoff letter. Keep linked accounts open until the old loan is paid off.
The new lender can pay off the old loan at funding. Weigh the closing costs against the benefit, because refinancing a large loan is not free.
What Leverage and Credit Should You Expect?
Leverage steps down as the loan grows. These are ceilings through select wholesale programs, subject to full underwriting.
On a primary residence purchase, typical ceilings run 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, and 75% at the top credit tier to $4,000,000. Above $4,000,000, every file is reviewed case by case before submission. Review decides leverage there, and a flat figure never applies. Second homes and investment property run about five points lower at most sizes.
On a primary residence cash-out, the ceiling is 80% on loans to $1,500,000 and falls from there. Above $4,000,000, cash-out is reviewed case by case.
Other figures to plan around:
- Credit: a 660 floor on the portfolio non-QM program, which carries files to $6,000,000. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Above the super-jumbo line, 700 applies.
- Super-jumbo overlays: above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, expect a 700 floor, a 0x30x24 housing history and 48-month seasoning on any credit event.
- Reserves: typically 3 months to $500,000, 6 months to $1,500,000 and 9 months above.
- Cash-out: proceeds are unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000.
Lendmire’s piece Super Jumbo Bank Statement Cash-Out After a Private Bank Decline covers the equity-pull side of the switch.
Where Does the General Rule Break?
Several edge cases change the picture.
Falling or lumpy income. Averaging smooths a lumpy year, but a clear downward trend in the latest months can hurt the file.
Multiple accounts. If business receipts are split across accounts and the underwriter reads only one, income can be understated. Scotsman Guide’s example of a medical practice shows how this plays out. Gather every account that receives business revenue.
Unsourced deposits. Large unexplained deposits can be excluded, so document the source before the underwriter asks.
Asset-based paths. When deposits tell only part of the story, liquid assets can carry the file. An asset allowance divides liquid assets by 36, 60 or 84 months, depending on DTI and size, on primary and second homes only. An assets-only path needs U.S. liquid assets equal to the loan plus closing costs. Retirement accounts count at 70%, or 80% at age 59.5 and up. Business funds, gifts, unvested stock and crypto never count.
Investors with rental portfolios. A rental-property investor can use bank statements, which qualify on personal or business deposits. The alternative is a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide explains when that path fits better. Programs below 1.00 coverage are available through select lenders, but leverage and terms adjust.
Interest-only. On the portfolio program, interest-only runs to 85% LTV with a 700 floor on purchase and rate-term files. That figure never raises a cash-out ceiling. The bank program offers interest-only at 60%. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Stay or Switch: A Decision Guide
| Your situation | Likely better fit |
|---|---|
| Full documentation, large deposits at the bank | Stay with the private bank |
| Taxable income understates cash flow | Bank statement loan |
| Bank declined the size or property type | Bank statement loan |
| Self-employed, business income runs through accounts | Bank statement loan |
| Assets large, income lumpy | Asset-based path |
The honest flip point is this. If the private bank will lend at your size, on your property, on documents it accepts, the relationship discount often wins. If any of those three fail, the discount is worth nothing, because you have no loan to discount.
Non-QM is not a shortcut. Per Scotsman Guide, non-QM was about 5% of originations in 2024, up from 3% in 2020, and roughly 15 million Americans are self-employed. The paperwork is different, not thinner.
Common Mistakes
- Closing the old accounts first. Keep the old loan and linked accounts until payoff is confirmed.
- Counting gross deposits as income. Business accounts take an expense ratio first.
- Mixing in transfers. Moves between your own accounts inflate deposits without adding income.
- Ignoring seasoning and overlays above the super-jumbo line. Credit events, citizenship and property rules get stricter at size.
- Assuming the leverage you saw at $1,000,000 carries to $4,000,000. It does not.
Frequently Asked Questions
Can I move my existing private bank loan to another lender?
No. The loan does not transfer. A new lender underwrites a new loan, and the proceeds pay off the old one. Get a payoff letter from the old lender and keep the old loan in place until the new loan is confirmed.
Do I have to move my deposits and investments out of the private bank?
Not as a condition of a bank statement loan. Programs through select wholesale networks price on credit, leverage and property, not on deposits held at the lender. You may lose any pricing discount tied to those deposits at the old bank. Keep linked accounts open until the payoff is complete.
Will my credit take a hit?
Applying brings a credit inquiry, and the new loan replaces the old one on your report. The larger issue is qualifying. The portfolio program starts at a 660 floor and the bank program at 680. Each file is underwritten individually.
Can I take cash out while I switch?
Yes, through select wholesale programs, subject to full underwriting. Proceeds are unlimited at or below 60% LTV. Above that, the portfolio program caps cash in hand at $1,500,000. Cash-out ceilings fall as the loan grows, and above $4,000,000 each file is reviewed case by case. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Does a bank statement loan replace traditional income documentation entirely?
It is reviewed on documented deposits under the applicable program, subject to lender guidelines. The lender still verifies that deposits are real income. Tax treatment varies; consult a qualified professional.
Next Steps
Lendmire is a broker that arranges financing through select wholesale lenders, and nothing here is a commitment to lend. Consumer lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA.
Super jumbo files reward preparation, and the borrowers who qualify most cleanly are the ones who sort their deposits before the lender does.
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 specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors.
Scotsman Guide named Lendmire a Top Mortgage Workplace in 2026.
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References
1. Orrick InfoBytes (FHFA 2026 limits)
2. Scotsman Guide, “Rev Up the Engine for Non-QM Lending”
3. CFPB ATR/QM Small Entity Compliance Guide (2021)
4. Scotsman Guide, “Don’t Shut the Door on Quality Borrowers”
5. Scotsman Guide, “Which groups are driving non-QM lending?”
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 Delayed Financing for a Private-Bank Client · Super Jumbo Bank Statement Cash-Out Documentation for a Loan-Out Company · Bank Statement HELOC vs Super Jumbo Bank Statement Loan for a Creative
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.