The Quick Read: It depends on loan size and property use, with down payments on a purchase running from about 10% on a primary residence under $1,000,000 up to 40% or more on an investment property above $3,000,000, through select wholesale programs, subject to full underwriting. Leverage steps down as the loan grows. Being self-employed does not set the number. Loan size, occupancy and credit do.
- A primary residence purchase can reach 90% LTV (loan-to-value, the loan divided by the lesser of price or appraised value) only up to $1,000,000 and with credit of 680 or higher.
- Above $1,000,000, no program in the network goes to 90%. Primary-residence purchases step down through 85%, 80% and 75%.
- Second homes and investment properties run about five points lower at most sizes.
- Everything above $4,000,000 is reviewed case by case before submission, so treat any figure at that size as a starting point. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
How Does Loan Size Change the Down Payment?
Loan size is the main driver. The bigger the balance, the less the lender will finance against the same property. Across the wholesale programs Lendmire works with, the ladder drops in steps, not in a straight line.
Lendmire is a mortgage broker. It does not lend. It places files with wholesale programs, and each lender sets and approves its own guidelines.
Here are the maximum purchase LTVs by loan size and occupancy, through select wholesale programs, subject to full underwriting. Subtract each figure from 100% to get the minimum down payment.
| Loan size | Primary home | Second home | Investment |
|---|---|---|---|
| $300K–$1M | 90% | 85% | 85% |
| $1M–$2M | 85% | 80% | 80% |
| $2M–$2.5M | 80% | 80% | 80% |
| $2.5M–$3M | 80% | 75% | 75% |
| $3M–$4M | 75% | 65% | 60% |
| $4M–$5M (case by case) | 65% | 65% | 65% |
| $5M–$10M (case by case) | 60% | 55% | 55% |
| $10M–$30M (case by case) | 55% | 50% | 50% |
Read the table as ceilings, not promises. The $3M–$4M row combines two bands: $3M–$3.5M and $3.5M–$4M. Each occupancy carries the same purchase figure in both bands. The difference is credit: a primary residence in the upper band needs stronger credit than in the lower one.
Credit scales with size too. The portfolio program’s floor is 660, and the bank program’s is 680. Above the super-jumbo line the floor is 700. Many cells in the middle of the ladder want 720 or better, and the $3.5M–$4M primary-residence band wants 760.
Every row above $4,000,000 is a case-by-case review. That means a $4.5 million purchase at 65% on a primary residence is a starting conversation, not a commitment.
Does Being Self-Employed Raise the Down Payment?
Not by itself. The ladder above is the same ladder a salaried borrower would face on these programs. Self-employment changes how you prove income, not how much equity the lender wants.
That is the point of a bank statement loan. Your traditional personal-income documentation shows the write-offs, which shrink your taxable income. Bank statement programs instead qualify you on documented income under the applicable program, subject to lender guidelines.
Here is how the income side works on most files in the network:
- Statements: 12 or 24 consecutive months of personal or business bank statements. The bank program uses 12.
- Ownership: Business statements need at least 25% ownership of the business.
- Expense ratio: Eligible deposits are divided by the statement months after an expense ratio. Fixed ratios step up with business size: the lowest applies to a service business with no employees, and the highest applies to a larger-staffed service business or any product business. An accountant-provided ratio is another option, as is a profit-and-loss method capped at 80%.
- Transfers: Transfers from your own business into your personal account count at 100%.
Stronger income lowers your debt-to-income ratio (DTI, monthly debts divided by monthly income), which can go to 50%. That helps you qualify. It does not move you up the LTV ladder. A lower DTI never buys you a higher LTV than the ladder allows.
Credit and DTI do trade off at the margins. A borrower sitting at the top of a band with strong credit has more room than one at the floor.
What Cash Do You Need Beyond the Down Payment?
Plan for three buckets: the down payment, closing costs, and reserves. Most buyers budget the first and get surprised by the third.
Reserves are liquid funds you must still hold after closing, counted in months of the full monthly housing obligation. On most files in the network:
- 3 months of reserves for loans up to $500,000.
- 6 months up to $1,500,000.
- 9 months above that.
- 2 more months for each additional financed property, up to a 12-month maximum.
- 12 months for first-time investors. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Above the super-jumbo line (more than $3,500,000 on a primary residence, more than $3,000,000 on a second home or investment property), cash-out proceeds cannot satisfy reserves. You need seasoned liquid funds already sitting there.
The appraisal matters here. LTV uses the lesser of price or appraised value. If a property appraises below contract, you cover the gap with more cash.
Worked Examples
These use modeled prices and the ladder above. Nothing here is a quote.
Primary residence at $3.2 million. This falls in the $3M–$3.5M band, where a purchase tops out at 75% LTV on a primary residence. Minimum down payment is 25% of the price. Expect 9 months of reserves. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Second home at the same price. The same price on a second home drops the ceiling to 65% on a purchase. Minimum down payment moves to 35%. Second homes are one-unit only.
Investment property at the same price. The ceiling falls again, to 60% on an investment-property purchase, so the minimum down payment is 40%. At this size, many investors compare this path with a property-level loan, which is covered below.
Primary residence at $900,000. This sits in the lowest band. A purchase can reach 90% LTV with credit of 680 or higher, so a 10% down payment is the floor. Reserves are 6 months only if the loan is above $500,000, which it is. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Notice the swing. The same $3.2 million price needs 25%, 35% or 40% down depending on how you will use the house. Occupancy is the second biggest lever after size. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
What Does “Super Jumbo” Actually Mean?
Jumbo has a legal edge. Super jumbo does not.
FHFA sets the conforming loan limit each year under a formula written into federal law. Jumbo status depends on the loan amount, not the purchase price, so a bigger down payment can pull a loan back under the limit.
Super jumbo has no official definition. The market uses it loosely for loans far above the ceiling, often $2,000,000 and up. In the Lendmire network, the useful boundaries are the ones that change the guidelines: the $1,000,000 line where 90% disappears, the $3,000,000 and $3,500,000 lines where the extra overlays begin, and the $4,000,000 line where case-by-case review starts.
Because these loans sit outside agency purchase rules, lenders hold them on their own books or sell them to private investors. That is why each lender sets its own caution level. And it is why a broker who sees many programs can show you a wider spread than one bank can.
Why Doesn’t a Rule Set the Number?
No rule sets a standard down payment for these loans. The lender or its investor does.
The CFPB’s ATR/QM small entity compliance guide explains that non-QM loans still require a documented, reasonable determination that you can repay. The framework does not dictate one underwriting model. So documentation and equity requirements come from lender guidelines. Non-QM does not mean no underwriting. It means the loan sits outside the qualified-mortgage safe harbor, and the lender documents ability to repay another way.
Can Assets Replace Income and Help Your Down Payment?
Assets can replace income, not equity. They show repayment ability. They do not lower the LTV ladder.
Two asset paths exist on primary and second homes:
- Asset allowance: Liquid assets divided by 36 months (supplemental, with DTI at or below 60%), 60 months (supplemental, DTI above 60%), or 84 months (standalone, or any loan above $3,500,000). Maximum LTV is 80%.
- Assets-only: No DTI is calculated. U.S. liquid assets must equal the loan amount 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 older. Business funds, gifts, trusts other than a revocable living trust, unvested stock and cryptocurrency never count toward these paths.
Many business owners keep most of their wealth in the company. That is the catch. If your liquidity sits inside the business, the asset paths may not see it. Moving funds to personal accounts early gives your statements time to show a clean history. 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.
Where Does Property Type Change the Answer?
Property type can cap LTV below the ladder. Through select wholesale programs, subject to full underwriting:
- Warrantable condos reach 85%, and non-warrantable condos 80%.
- Condotels reach 75% on a purchase and 65% on a cash-out, with 50% on the bank program.
- Two-to-four-unit properties reach 85%.
- Rural property is capped at 80% on ten acres or less and is never available above $3,000,000.
- Super-jumbo overlays rule out rural property and cap acreage at ten.
These property caps sit on top of the size ladder. The lower of the two controls.
What If You Are Buying a Rental, Not a Home?
If you are buying the property to rent, a bank statement loan is only one option. A business-purpose DSCR loan is another.
DSCR stands for debt service coverage ratio: the property’s rent divided by its full monthly obligation. 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. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
For a self-employed investor, that matters. Your write-offs stop mattering because personal income is not the test. Select lenders in the network will review coverage below 1.00, though leverage and terms adjust when they do. The tradeoff is that the property has to carry itself. Many investors who are offered a low minimum down payment on a DSCR loan end up putting more in to clear the coverage target.
A vacation home you personally use is a second home, and DSCR generally does not apply to it. A house bought to rent is an investment property, where either product can fit. Lendmire’s complete DSCR loans guide walks through how the property-level test works.
If your purchase is a house-hack, Lendmire has a separate piece on how self-employed down payment rules work for a house-hack purchase, covering the owner-occupied multi-unit case.
How Do You Decide: More Down, More Reserves, or Neither?
Practitioner pattern: most buyers at this size are not short on equity. They are short on the right kind of liquidity.
A quick framework:
1. Start with the ceiling. Find your size band and occupancy. That is the least you can put down.
2. Check reserves next. Count months against your liquid balance after the down payment and closing costs. If you fall short, a larger down payment will not help. Lower the price, or lower the loan.
3. Test your income path. If a 12-month bank statement file shows weaker deposits than a 24-month file, ask which one the lender will use. The expense ratio can swing qualifying income by double digits.
4. Weigh the tradeoff. Higher equity typically earns better pricing and a calmer review, but it ties up capital you may need for the business or the next deal.
The stronger play for many founders is to keep the down payment near the ladder’s ceiling and hold the cash in reserve. That is a judgment call, though. A buyer with unstable deposits might reasonably do the opposite.
Interest-only structures change the payment profile, not the down payment. On a purchase, the portfolio program’s interest-only structure reaches 85% LTV with a 700 credit floor, and the bank program’s goes to 60%. Neither raises the ladder ceiling. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What Mistakes Raise Your Cash Requirement?
- Large unexplained deposits. Underwriters trace them. Funds that cannot be sourced may not count.
- Gaps in statements. Statements must be consecutive. Transaction histories never substitute.
- Buying right after a down year. Lower deposits shrink income and can push you into a worse band.
- Draining liquidity at closing. You clear the LTV test and fail the reserve test.
- Assuming a primary-residence figure applies to a rental. The same price can need 15 points more equity.
- Ignoring the appraisal. A low value is your problem, not the seller’s.
If a property is short on equity, you have four moves. Lower the price. Switch documentation path. Change the occupancy structure if your plan genuinely supports it. Or shop another program, since overlays differ.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the lesser of purchase price or appraised value. A 75% LTV means a 25% down payment. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Super jumbo: An informal market label for loans far above the conforming limit. It has no official definition.
Bank statement loan: A mortgage that is reviewed around deposits in personal or business accounts instead of traditional personal-income documentation.
Reserves: Liquid funds you must still hold after closing, counted in months of the full housing payment.
Non-QM: A loan outside the qualified-mortgage safe harbor. It still requires a documented ability-to-repay determination.
DTI (debt-to-income): Monthly debts divided by monthly income. These programs allow up to 50%.
Frequently Asked Questions
Can I put 10% down on a super jumbo loan?
Only at the low end. A primary-residence purchase can reach 90% LTV up to $1,000,000 with credit of 680 or higher. Above $1,000,000 the ceiling steps down to 85% and keeps falling. Second homes and investment properties run lower. These options are available through select wholesale programs, subject to full underwriting. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Does a CPA letter lower my down payment?
No. A letter from your accountant can supply an expense ratio in place of the fixed 20%, 40% or 50% ratios, which may raise your qualifying income. That helps with DTI. It does not change the LTV ladder, which is set by loan size and occupancy.
Can I use business funds for the down payment?
It depends on the program and how the funds are documented. For the asset-allowance and assets-only paths, business funds never count as qualifying assets. Move and season funds personally if you can, and have the paper trail ready. Transfers from your own business into a personal account count at 100% for income purposes.
Is 20% always the minimum?
No. Many buyers in the lower bands can put down less. In the middle of the ladder 20% to 25% is common on a primary residence, and above $3,000,000 on a second home or investment property it can run much higher.
Does an investment property need more down than a primary home?
Usually, yes. On most bands, an investment property or second home runs about five points lower in LTV, and the gap widens from $3,000,000 up. Rental buyers may also compare a DSCR loan, which looks at the property’s income, not yours.
Where Does This Leave You?
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’s 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. Call 828-256-2183 or request a quote.
For a broader look at how the ladder interacts with lender policy, Lendmire also covers whether being self-employed changes your jumbo down payment by lender. Every file is underwritten individually, programs change, and nothing here is a commitment to lend.
At this price level, the buyers who close comfortably are rarely the ones who hunted for the lowest down payment; they are the ones who sized the down payment, the reserves and the occupancy plan together before they wrote an offer.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage focused on DSCR investor financing, helping arrange programs through wholesale and investor-lending channels in 41 markets, including Washington, D.C. DSCR loans are evaluated by the lender on property cash flow rather than personal income, subject to lender guidelines, supporting LLC closings and accommodating investors with four or more financed properties. Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
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References
1. FHFA Conforming Loan Limits
2. 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: How a Super Jumbo Self-Employed Mortgage Works · How Much Can You Borrow With a Jumbo Bank Statement Mortgage? · How to Get a Super Jumbo Loan With No Current Income
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.