The Quick Read: An agent qualifies by proving real deposits, not by showing a tax return, and then clearing the extra credit, reserve and leverage tests that apply as the loan balance grows. The lender reads 12 or 24 months of consecutive bank statements, removes anything that is not earned income, applies an expense ratio where business accounts are used, and averages what is left.
- Income comes from documented deposits, which is why commission earners with heavy write-offs fit this product.
- Personal statements and business statements both work, and business statements need at least 25% ownership.
- Leverage steps down as the balance rises, and every file above $4,000,000 is reviewed case by case before submission.
- Reserves scale with loan size: 3, 6 or 9 months, through select wholesale programs, subject to full underwriting.
- Asset-based and property-cash-flow paths exist for agents whose deposits are too lumpy to carry the file.
Most agents are independent contractors. Their brokerage pays them commission, they pay for the desk, the marketing, the MLS dues and the mileage, and their taxable income lands far below what actually hit the bank. A conventional underwriter sees the small number. A bank statement underwriter sees the deposits.
This guide walks through how that works, step by step, for balances well above the standard jumbo line. The figures below describe select wholesale programs that Lendmire, a mortgage broker, places files with. Every parameter is a typical ceiling or floor, not a promise, and nothing here is a commitment to lend.
Key Terms Defined
Super jumbo: a loan large enough that the lender tightens its rules. No law draws the line. Each program sets its own, and in this network the tighter credit and property overlays begin above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Bank statement loan: a mortgage that measures income from deposits in your bank accounts instead of traditional personal-income documentation.
Eligible deposit: money that reflects earned income. Transfers between your own accounts, loan proceeds and refunds are not eligible.
Expense ratio: the share of business deposits the lender assumes went to running the business. What remains counts as income.
Reserves: liquid money left over after the purchase, measured in months of the full housing payment.
Seasoning: the waiting period after a credit event, such as a foreclosure, before the lender will consider you again.
Why an Agent’s Tax Return Understates Income
A tax return answers a different question than a lender does. Under the IRS instructions for Forms 1099-MISC and 1099-NEC, commissions paid to a non-employee for services are reported as nonemployee compensation, and the reporting threshold is $2,000. That form shows gross commissions. Write-offs then shrink the taxable figure.
So an agent can have a strong year in cash and a thin year on paper. Not unusual. Deposit-based underwriting exists to close that gap.
The flip side matters too. The 1099 total is not the underwriting number. If your brokerage pays you net of a split, the lender sees only what actually landed in your account. Gross commissions on a form do not count unless the deposits back them up.
How the Lender Turns Deposits Into Qualifying Income
The sequence is the same on most programs, and it is simple once you see it. Scotsman Guide’s non-QM coverage describes the standard setup: a self-employed borrower with no W-2 supplies 12 to 24 months of personal or business statements, and income is calculated with an expense factor or a profit-and-loss statement prepared by a tax professional.
Here is what that looks like inside a super jumbo file:
1. Pick the statement window. Twelve or 24 consecutive months. The bank program uses 12. Statements must be consecutive, and a transaction history never substitutes.
2. Pick the account type. Personal statements suit an agent paid directly. Business statements suit an agent who runs commissions through an entity, and they require at least 25% ownership.
3. Strip out ineligible deposits. Transfers between your own accounts, loan proceeds, refunds, gifts and one-off windfalls come out.
4. Apply the expense ratio. On business statements the program sets it. Fixed options are available for a service business with no employees, for a business with a small number of employees, and for a larger-staffed or product business, with the ratio rising at each step. An accountant-provided ratio is an alternative, and so is a profit-and-loss method capped at 80%.
5. Average over the window. Eligible income is divided by the number of statement months.
6. Test the ratios. Debt-to-income, meaning your monthly debts measured against that income, can run up to 50% on these programs.
Transfers from your own business into your personal account count at 100% of the transferred amount. That is a quiet advantage for agents who pay themselves from an entity: the lender can read the personal account and skip a second expense haircut.
Picture the ratios on a simple basis. Out of every 100 units of eligible business deposits, a solo agent in the no-employee service category keeps 80 after the 20% ratio. A team leader with three assistants keeps 60 after the 40% ratio. A large team or a brokerage with a product side keeps 50. That spread is why team size matters as much as production.
What Counts as an Eligible Deposit
Deposit review is where agent files get won or lost. Agents receive money in more shapes than a salaried borrower does, and each one gets treated differently.
| Deposit type | Typical treatment |
|---|---|
| Commission wire from brokerage | Counts, net of any split |
| Referral fee from another agent | Counts when traceable and recurring |
| Transfer from your own business | Counts at 100% into personal |
| Transfer between your own accounts | Excluded |
| Loan proceeds, refunds, gifts | Excluded |
| Client funds passing through | Excluded, may need explanation |
Underwriters can also question a large deposit they cannot identify. Treatment of borderline items varies by program, so a short written explanation with a supporting document often settles it.
Personal, Business or Mixed Accounts
Which account you use changes the math more than most agents expect.
| Your setup | Usually fits |
|---|---|
| Commissions paid straight to you | Personal statements |
| Commissions paid to your entity | Business statements, expense ratio applies |
| Entity pays you a draw or salary | Personal, with transfers at 100% |
| Everything in one account | Expect questions, may need a P&L |
Mixed accounts are the common trouble spot. When personal groceries and business marketing spend run through the same account, the underwriter has to sort them. At small balances that is tolerable. At super jumbo balances it draws more scrutiny.
If you have partial ownership of the entity, the lender prorates income to your share. Lendmire has covered that situation in its piece How to Qualify for a Super Jumbo Bank Statement Loan as a Partial Owner.
Which Documentation Path Fits Which Agent
Deposits are not the only door. Across the wholesale network, several paths exist, and the right one depends on how your income actually behaves.
| Path | Pick it when |
|---|---|
| 12 months of statements | Income is rising and recent months are your best |
| 24 months of statements | One year was lumpy and two smooth the average |
| Profit-and-loss method | Your accountant can document lower expenses |
| Asset allowance | You hold large liquid assets and moderate income |
| Assets-only | Deposits are thin but liquidity is deep |
| DSCR on a rental | The property’s rent carries the payment |
Closings bunch up around quarter-ends and year-ends, so a single strong month can sit next to two quiet ones. A longer window smooths the dips. A shorter one rewards growth.
The asset paths work differently. Asset allowance divides your liquid assets by 36, 60 or 84 months to create income, and it applies to primary and second homes only, up to 80% leverage. Assets-only needs no debt-to-income test, but your U.S. liquid assets must equal the loan amount plus costs plus sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59.5 and older. Business funds, gifts, cryptocurrency and unvested stock never count. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
An agent buying a rental can skip personal income entirely. A DSCR loan, short for debt service coverage ratio, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Select lenders in the network also offer programs below 1.00 coverage, though leverage and terms adjust. The trade-off: DSCR files carry smaller maximums and different pricing than a high-balance bank statement file. The complete DSCR loans guide covers that path in full.
What Changes at Super Jumbo Scale
Bigger loans mean less leverage, deeper reserves and stricter credit. It is that plain.
Two programs, two ladders. The portfolio non-QM bank statement program carries files to $6,000,000. A separate bank portfolio jumbo program takes twelve-month-statement files to $30,000,000 on its own ladder. The bank program’s ladder begins above $4,000,000, so the two overlap to $6,000,000, and above that the bank program stands alone.
Leverage on a primary residence, purchase. Through select wholesale programs, subject to full underwriting, ceilings run 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000 and 75% to $4,000,000 at the top credit tier. Above $4,000,000, every file is reviewed case by case before submission. On review, the bank program’s ladder runs 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000. Second homes and investment property run about five points lower at every size.
Credit. The portfolio program’s floor is 660, the bank program’s is 680, and both move to 700 above the super jumbo line. Above $3,500,000 on a primary residence, and $3,000,000 on a second home or investment property, the overlays also include a 0x30x24 housing history, 48 months of seasoning on any credit event, U.S. citizens and permanent residents only, no non-occupant co-borrowers, no rural property and a ten-acre maximum.
Reserves. Three months to $500,000, six months to $1,500,000 and nine months above that. Add two months per additional financed property, up to a 12-month maximum. First-time investors need 12 months.
Cash-out. Proceeds are unlimited at or below 60% LTV (loan-to-value, the loan as a share of the property’s value) on a refinance with no purchase involved. Above 60%, the portfolio program caps cash in hand at $1,500,000, while the bank program has no published cap. On super jumbo files, cash-out proceeds cannot be used to satisfy reserves. Strong deposits qualify you, but the leverage ceiling sets how much you can pull. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Lendmire has also written about how to use business funds as reserves on a super jumbo bank statement loan, which matters if your cash sits inside an entity.
The Rules Behind the Rules
A bank statement loan is not a no-paperwork loan. Federal ability-to-repay rules require a lender to make a reasonable, good-faith determination that you can repay, and to verify the information it relied on. The CFPB’s small entity compliance guide lists eight factors to consider, including verified income or assets and credit history, and does not prescribe a single underwriting model.
That is why deposit-based underwriting is legitimate. The documentation method changes. The obligation to verify does not.
Preparing Before You Apply
Preparation matters more than almost anything else in an agent file. A simple sequence helps.
At the start of prep: Decide which account will carry commissions and route all of them there. Pull your statements and mark every transfer, refund and unusual deposit before the underwriter does.
Midway: Gather your brokerage commission statements so deposits tie to closings. If you run an entity, ask your accountant about an expense ratio or a profit-and-loss statement. Confirm in writing whether you are a contractor or an employee of your brokerage.
Just before applying: Avoid opening new accounts or moving large sums around. Line up your reserves in accounts that count. Write short letters for any large deposit you can explain.
Why Agent Files Stall
- Large unexplained deposits that look like transfers or gifts.
- Commingled personal and business money.
- A brand-new account with too little history.
- Entity ownership below 25% on business statements.
- Reserves held in business accounts, retirement accounts counted at full value, or cash-out proceeds the program will not credit.
- Credit under the 700 line on a super jumbo file.
Not glamorous. All fixable before submission.
If You Are the Agent Advising a Buyer
This guide is about you as the borrower. If you are instead helping a client buy at this price level, the short version is that few lenders do super jumbo, appraisals at this size carry more risk, and the buyer’s documentation path should be settled before the offer goes in. Bring a broker in early, and ask whether the client’s income comes from a W-2 or from a business. That answer decides which path to use.
If you are buying property in the market where you work, your licensing and disclosure obligations come from your state and your brokerage. Ask your managing broker, not your loan officer.
When This Is the Wrong Tool
Some agents should not use a bank statement loan at all. A W-2 agent employed by a brokerage may qualify more simply on pay stubs. An agent with large liquid holdings and unpredictable deposits may do better on the asset paths. And a buyer who wants a rental can often skip personal income altogether with DSCR. Honestly, the best choice is the one that produces the cleanest file, not the one that sounds the most impressive.
This article is general information, not legal or tax advice. 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. Consult an attorney or CPA about your own situation.
Frequently Asked Questions
Can I qualify if my commissions are uneven from month to month?
Usually, yes. The lender averages eligible deposits over 12 or 24 months, so lumpy months smooth out. If one year was weak, the 24-month window may carry the file. If you are growing, 12 months can work in your favor. Income is still tested against debt-to-income limits of up to 50%.
Does my 1099 income decide what I qualify for?
No. The 1099 shows gross commissions, but the lender reads what was deposited. If your brokerage pays you net of a split, only the amounts that actually landed count. The form can still help explain your deposits.
What if my commissions land in a personal account?
Personal statements work for that. The lender removes transfers between your own accounts and non-income items, then averages the rest. Mixed use can invite more questions as the balance rises, so a dedicated account helps.
Can I run commissions through an LLC and use business statements?
Yes, if you own at least 25% of the entity. The program then applies an expense ratio of 20%, 40% or 50% depending on your employees and business type, or an accountant-provided ratio, or a profit-and-loss method capped at 80%. Transfers into your personal account count at 100%.
Can a super jumbo bank statement loan fund a cash-out?
Yes, within limits. Proceeds are unlimited at or below 60% LTV. Above that, the portfolio program caps cash in hand at $1,500,000, and the bank program has no published cap. Above $4,000,000, everything is reviewed case by case before submission, and cash-out proceeds cannot satisfy reserves on super jumbo files. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
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. Consumer mortgage lending through this channel is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Programs change, and every file is underwritten individually.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
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. IRS Instructions for Forms 1099-MISC and 1099-NEC
2. Scotsman Guide, Rev Up the Engine for Non-QM Lending
3. CFPB ATR/QM Small Entity Compliance Guide
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 Cash-Out Refinance for Maximum Loan Size · Super Jumbo Bank Statement Cash-Out After a Private Bank Decline · Bank Statement HELOC vs Super Jumbo Loan for a Loan-Out Corporation
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.