The Quick Read: Usually well above the standard 20%. On an investment-property purchase, most super jumbo programs in Lendmire’s wholesale network call for about 25% down from $1 million to $3 million, about 35% down from $3 million to $4 million, and roughly 40% down above that on review, all subject to underwriting.
- Size sets the down payment, not the coverage ratio. A DSCR (debt service coverage ratio) of 1.00 or better earns full leverage, and a higher ratio does not unlock more.
- Down payment is separate from closing costs and reserves. Plan for all three.
- Above $2 million, expect two appraisals and long-term market rent as the income basis.
- Cash-out refinancing stops above $3 million, which changes how you exit.
- Every figure here is a typical ceiling through select wholesale programs, subject to underwriting, and not a commitment to lend.
What Are the Down Payment Requirements for a Super Jumbo DSCR Loan?
The requirement is the purchase price minus the maximum loan, and the maximum loan-to-value (LTV) sets it. LTV is the loan amount divided by the property’s value. As the loan grows, the allowed LTV drops, so your cash requirement climbs faster than the price does.
DSCR Calculator
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Here is the ladder most programs in the network follow for a purchase of a 1-4 unit investment property at DSCR 1.00 or higher. Each leverage figure is a ceiling, subject to underwriting.
| Loan size | Max purchase LTV | Typical down payment |
|---|---|---|
| $150K–$1M | 80% | 20% |
| $1M–$1.5M | 75% | 25% |
| $1.5M–$2M | 75% | 25% |
| $2M–$3M | 75% | 25% |
| $3M–$4M | 65% | 35% |
| $4M–$6M | 60% on review | 40% |
| $6M–$10M | 60% on review | 40% |
The bands are loan amounts, not purchase prices. Compute price times leverage first, then read the band for that loan.
The credit score each band’s top leverage needs: 660 or better up to $1 million, 700 or better from $1 million to $1.5 million, and 720 or better from $1.5 million to $3 million. Above $3 million, the top cell needs 700 or better. A lower score takes a lower leverage cell inside the same band.
Two things stand out. First, 80% leverage ends at $1 million. Second, above $4 million nothing is automatic. Each request is reviewed case by case before submission, and it is purchase or rate-and-term only. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Rate-and-term means refinancing the balance without pulling cash out. It follows the same leverage ladder as a purchase.
Why Is There No Official Super Jumbo Threshold?
No regulator defines “super jumbo.” It is a size label lenders use for the top of the loan range. The only fixed government figure nearby is the conforming loan limit, and it matters mainly for labelling a loan “jumbo.”
The Federal Housing Finance Agency sets that limit each year, and FHFA treats any loan above it as jumbo. The limit is $832,750 for a one-unit property in most of the country. High-cost areas reach $1,249,125, per Orrick’s summary of the FHFA announcement.
That number does not cap DSCR loan size, and it does not set your down payment. DSCR loans are business-purpose investor loans, reviewed differently from a standard owner-occupied mortgage. Each program sets its own equity requirement.
How Does This Compare With the Market?
Market surveys show the same pattern. Scotsman Guide reports that DSCR requirements vary by lender and that many want a meaningful down payment on purchases. Its example has some lenders at 85% LTV under $1 million but only 65% above $1 million.
That is a market example, not a network figure. In Lendmire’s network, the ceiling is 80% on an investment-property purchase up to $1 million and 75% from there to $3 million. Above $3 million it drops to 65%, subject to underwriting.
One more point from that same piece: non-QM lenders can make exceptions to their own guidelines. Across the network, the strictest overlays sit at the top of the ladder. A few lenders flex more on credit or property type, but almost none flex on leverage past $4 million. Treat a stated ceiling as a ceiling.
Why Does the Down Payment Rise With Loan Size?
Lenders hold more risk on a very large loan. The pool of buyers for a multimillion-dollar rental is thin. If the lender ever had to sell, the exit is slower and the price less certain.
So programs add equity instead of tightening the coverage ratio. That surprises people. A 1.00 coverage ratio earns full leverage at super jumbo size, and a 1.30 does not buy you a lower down payment.
Think of it this way. Coverage answers whether the rent supports the loan. Size answers how much cushion the lender wants if the value is wrong. They are separate tests.
Worked Examples: Price, Percent Down, and Total Cash
Run the numbers on three purchases. These are modeled assumptions for illustration, expressed in percentages, not quotes. The illustrative calculator on this site converts percentages to dollars.
A $3.2 million fourplex. At 75% leverage the loan lands in the $2M–$3M band, so you bring about 25% down. Credit needs to be 720 or better for that leverage. Two appraisals are required because the loan is above $2 million. Reserves of six months come on top. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
A $5 million purchase. At 65% leverage the loan lands in the $3M–$4M band. You need about 35% down, credit of 700 or better, plus two appraisals and reserves. Compared with the first example, the down payment percentage jumps from 25% to 35%, so equity grows faster than price. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
An $8 million purchase. At 60% leverage the loan lands in the $4M–$6M band, so it is on review. Plan for roughly 40% down. Reserves, appraisals, and documentation expectations all apply. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Notice what the examples leave out: closing costs. Down payment is not cash to close. Lender and third-party costs, prepaid items, and escrows come on top. Reserves must also be documented separately from funds used to close.
Down Payment vs. Reserves vs. Closing Cash
A single dollar cannot do two jobs. Keep the three buckets apart when you plan your liquidity.
| Bucket | What it is | Counts twice? |
|---|---|---|
| Down payment | Price minus the loan | No |
| Closing cash | Fees, prepaids, escrows | No |
| Reserves | Documented months of payments | No |
Reserves are typically six months of PITIA on the subject property. PITIA is principal, interest, taxes, insurance, and HOA dues where they apply. On interest-only loans, reserves are counted on ITIA, which drops the principal. First-time investors typically need twelve months.
Here is a point many investors get wrong. Reserves do not multiply as the loan grows. The requirement does not scale loan for loan. It steps up for first-time-investor status instead. There are no extra reserves for your other financed properties, and the network allows up to 20 financed properties.
Cash-out proceeds from another property do not satisfy reserves. They can still help fund a down payment, which a later section covers.
What Changes the Number at the Edges?
The ladder is the default. These are the situations that move it.
Coverage below 1.00. Select lenders in the network review coverage below 1.00 on files up to $2 million. LTV and terms adjust, subject to underwriting. Above $2 million, you need coverage of 1.00 or better.
Short-term rentals. STR files are available to $2 million, through select programs. Coverage must be 1.00 or higher. Income is twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase, at 80% of gross. Investors need experience: twelve months owning income property in the last thirty-six.
Above $2 million, income shifts to long-term market rent. A property that cleared on nightly revenue may not clear on a lease basis. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Permission to operate is documented property by property.
Interest-only. A 120-month interest-only period is available on 30- and 40-year terms, up to 75% LTV, with coverage of 0.75 or better qualified on ITIA. Interest-only changes how coverage is measured. It does not lower the down payment. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Condos and rural property. Warrantable and non-warrantable condos are eligible. Non-warrantable condos go to 75% LTV and $1.5 million. Rural collateral on five acres or less can reach 75%, but only on loans at or below $3 million. Above $3 million: no rural property, and no more than ten acres on a non-rural one. Cash-out never satisfies reserves. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Entity vesting. Buying in an LLC is welcome, subject to program terms, though layered entities are not. Vesting changes who is on the note and deed. It does not change the leverage math.
Can Cash-Out From Another Property Fund the Down Payment?
Often, yes. A cash-out refinance on a property you own can supply equity for the next purchase. Scotsman Guide makes the same point in its DSCR overview.
Network limits matter here. Proceeds are unlimited at or below 60% LTV. Above 60%, they are capped at $1.5 million. There is no cash-out above $3 million, and none for credit of 680 and below once the loan passes $1.5 million. On standard rentals, the top cash-out ceiling is 75% LTV, and only up to $1 million. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Where Most Investors Get It Wrong
Assuming 20% works at any size. Twenty percent is the baseline for standard loan sizes. Past $1 million, the ceiling drops to 75% on a purchase, and it keeps falling.
Expecting a better coverage ratio to cut the down payment. At this size, it will not. Size drives leverage.
Forgetting the second appraisal. Two appraisals are required above $2 million. They address value and rent risk. When the two rent numbers diverge, the coverage the file is reviewed on shifts. A low appraisal also raises the cash you need or shrinks the loan, since the loan is based on the lower of price or value.
Treating zero-down as an option. Borrower equity is required. The sub-1.00 and interest-only paths change coverage and structure, not whether you bring cash.
Ignoring the exit. A refinance has to pass coverage, leverage, credit, and appraisal tests again. Cash-out disappears above $3 million, so a loan above that size cannot be pulled back out later. Plan your exit before you buy.
Consider the edge of a band. The stronger play is sometimes a slightly smaller loan. Staying under $3 million keeps cash-out available and leaves the 75% ceiling intact. Investors chasing a trophy asset might reasonably argue the other way, but they should price in the loss of an exit.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What Else Do Lenders Look At?
Beyond the down payment, expect a few more checks. The program floor is 660 on loans to $3 million and 700 above $3 million. Above $3 million, that tier also asks for 0x30x24 housing history and 48-month seasoning on credit events. The program is limited to citizens and permanent residents.
Documentation is straightforward. You provide proof of the down payment and reserves with documented sources. You provide current leases if the property is occupied, appraisals with a rent schedule, and entity documents if you vest in an LLC.
Most files in this size range are arranged this way: strong credit, a documented source of cash, and a property whose rent clears 1.00. DSCR qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, reserves, and experience still matter.
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.
For the full picture of how these loans work, see Lendmire’s complete DSCR loans guide.
Key Terms Defined
LTV (loan-to-value): the loan amount divided by the property’s value. A 75% LTV means a 25% down payment. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
DSCR (debt service coverage ratio): monthly rent divided by the full monthly payment, including principal, interest, taxes, insurance, and HOA dues.
PITIA: principal, interest, taxes, insurance, and association dues. It is the full monthly obligation used in the coverage test.
ITIA: the same obligation on interest-only loans, without principal.
Reserves: documented liquid funds held after closing, counted in months of payments.
Super jumbo: a lender-set label for very large loans. No regulator defines it.
Frequently Asked Questions
Is 80% leverage available on a super jumbo DSCR loan?
Only up to $1 million, and only on an investment-property purchase through select wholesale programs, subject to underwriting. Between $1 million and $3 million, the ceiling is 75%. It falls to 65% from $3 million to $4 million and 60% above that on review. Every figure varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
Do I need two appraisals?
Yes, above $2 million. They test the property’s value and its market rent. If the two appraisers’ rent figures differ, the coverage ratio the file is reviewed on can change, and the lower value governs the loan amount.
Are reserves on top of the down payment?
Yes. Reserves are typically six months of PITIA on the subject property, or twelve months for first-time investors, documented separately from closing funds. Interest-only loans count reserves on ITIA.
Can a higher DSCR lower my down payment?
Not at this size. A coverage ratio of 1.00 earns full leverage, and a higher ratio does not unlock more. Coverage below 1.00 is possible on files up to $2 million through select lenders, but LTV and terms adjust, subject to underwriting.
Can I cash out later if my loan is above $3 million?
No. Cash-out is not available above $3 million. A later refinance would be rate-and-term, and it would have to pass coverage, leverage, credit, and appraisal tests again.
Planning Your Cash
Capital planning for a super jumbo purchase has four line items: the down payment, closing costs, reserves, and the second appraisal. Add them before you make an offer, not after. Most surprises come from forgetting that reserves and closing cash are separate from the down payment.
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Lendmire is a broker arranging business-purpose financing through select lenders in 41 markets, including Washington, D.C., and nothing here is a commitment to lend. Call 828-256-2183 or request a quote.
At the top of the DSCR range, the buyer who plans for three buckets of cash, not one, is the one who reaches closing without a scramble.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits.
Scotsman Guide named Lendmire a Top Mortgage Workplace in 2026.
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References
1. FHFA Conforming Loan Limits
2. HousingWire, 2026 conforming loan limit
3. Orrick InfoBytes, FHFA conforming loan limit increases
4. Scotsman Guide, DSCR loans for real estate investors
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Qualify for a Super Jumbo DSCR Loan in Wisconsin · How a Super Jumbo DSCR Loan Works for Portfolio Investors · How Much Down Payment Does a Super Jumbo DSCR Loan Require on a Warrantable Condo?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.