The Quick Read: It depends on the lowest of three limits: the program’s loan-size ceiling, the leverage cap for that size, and the loan the rent can support. Interest-only mainly helps the third limit. It rarely raises the first two, and it carries its own leverage cap.
Loan sizes run from $150,000 to $10,000,000 on the portfolio investor program, subject to underwriting. Leverage steps down as the balance grows, so larger purchases carry a lower maximum leverage, on review. Interest-only runs 120 months, carries its own leverage cap, and is qualified on interest, taxes, insurance and dues (ITIA). Cash-out disappears above $3,000,000, and two appraisals are required above $2,000,000.
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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.
Every figure here is a ceiling through select wholesale programs. Each file is underwritten individually, and nothing here is a commitment to lend.
What Actually Sets the Ceiling?
No law caps an interest-only super jumbo DSCR loan. The number comes from the lender’s own program, and across the wholesale network Lendmire places files with, three limits do the work.
The first is the size ceiling. Lendmire’s standard DSCR program stops at $3,000,000. The portfolio investor program reaches $10,000,000, and short-term-rental files stop at $2,000,000.
The second is leverage. The larger the balance, the lower the maximum loan-to-value (LTV), which is the loan as a percentage of the property’s value.
The third is rent coverage. The lender divides the property’s rent by the monthly obligation. That ratio is the debt service coverage ratio (DSCR). On an interest-only loan, the obligation is ITIA, which leaves out principal.
Your borrowing capacity is the smallest of those three results. Many investors assume the biggest number wins. It is the other way around.
The Leverage Ladder
Leverage is where size costs you. The table shows the maximum LTV on a purchase of an investment property and the credit score each band’s top leverage needs, assuming coverage of 1.00 or higher.
| Loan size | Max LTV (purchase) | Credit for this leverage |
|---|---|---|
| $150K–$1M | 80% | 660+ |
| $1M–$1.5M | 75% | 700+ |
| $1.5M–$3M | 75% | 720+ |
| $3M–$4M | 65% | 700+ |
| $4M–$10M | 60%, on review | 700+ |
Rate-and-term refinances follow the same percentages as purchases. Cash-out is tighter. It reaches 75% on a standard rental only in the lowest tier. It drops to 60% between $1,500,000 and $3,000,000 and is not available above $3,000,000.
Above $4,000,000, every request is reviewed case by case before submission. It is purchase or rate-and-term only. Treat any figure in that range as a starting point for a conversation.
Two more filters tighten with size. Two appraisals are required above $2,000,000. Above $3,000,000, programs add a 700 credit minimum, 0x30x24 housing history, 48-month seasoning after a credit event, and a citizen or permanent resident requirement.
How Interest-Only Changes the Math
Interest-only changes the payment the rent is divided by. It does not change the property or the rent.
On a standard amortizing loan, the test is rent divided by principal, interest, taxes, insurance and dues. Principal is the part that pays the balance down. On an interest-only loan, principal drops out. The same rent now covers a larger balance, or a borderline deal clears the test.
The interest-only overlay on this program is specific. The interest-only period lasts 120 months on 30- and 40-year terms. The maximum is 75% LTV, and coverage of 0.75 or better is tested on ITIA, subject to underwriting. Final terms vary by lender, property type, leverage and credit profile.
The 75% cap matters at the low end. A purchase under $1,000,000 can reach 80% on a standard structure. Choose interest-only and you give up five points of leverage.
Past $1.5 million, the size ladder already sits at 75% or below. Interest-only costs you nothing in leverage there. This is the main reason interest-only fits super jumbo files more naturally than small ones.
Read the term sheet closely. On a 40-year term “with interest-only,” some programs amortize across all 40 years and others take the interest-only decade first. Those are very different loans.
Three Worked Examples
These scenarios use modeled inputs. They are illustrations, not market data.
Example one: leverage binds. Say you buy a $3,500,000 rental. It sits in the $3M–$4M tier, so the purchase cap is 65% LTV. Even if rent covers the interest-only obligation with room to spare, the leverage cap is the limit. Extra rent does not buy extra loan. It buys cushion. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Example two: coverage binds. Consider a $2,500,000 rental where the ladder allows 75% on a purchase. Suppose the rent covers only about 0.9x of the obligation at that balance. The leverage cap is not the problem. Select lenders in the network may review sub-1.00 coverage, but LTV and terms adjust, subject to underwriting. Your realistic choices are a smaller loan, a larger down payment, or more rent.
Example three: interest-only rescues the ratio. Run the numbers on a $1,200,000 purchase at 75% LTV. Rent covers the interest-only obligation at roughly 1.15x. Tested on a fully amortizing payment, the same rent might land near 0.9x. Under an interest-only structure, the loan clears the full-leverage test. Under amortization, it needs a smaller balance. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The third example is the real reason investors choose this structure. It is also where the risk sits, which the next section covers.
The Reset Test (Do This Before You Choose Interest-Only)
Interest-only buys capacity today and a higher payment later. When the 120-month period ends, principal returns to the payment and the obligation steps up.
A coverage ratio near 1.30x on interest-only can fall to around 1.00x or below once principal is added back. A higher interest-only ratio is not the same as a safer deal.
Before you pick the structure, divide the property’s rent by the amortizing obligation. That is your post-reset coverage. If the deal only works on the interest-only basis, you are betting on rent growth, a refinance, or a sale before the reset.
Interest-only also means the balance does not shrink. Equity builds only through appreciation or a bigger down payment. Prepayment terms can interact with your exit plan, so read them before you commit to a refinance timeline.
What Else Limits Your Number?
Reserves come first. Programs here typically require 6 months of reserves on the subject property, stated on ITIA for interest-only files. First-time investors typically need 12 months. Reserves are not required for your other financed properties, and you can hold up to 20 financed properties. Cash-out proceeds cannot satisfy reserves.
Credit matters next. The program floor is 660, and 700 applies above $3,000,000. A lower score takes a lower leverage cell inside the same band. A cash-out request with credit at 680 or below faces extra limits above $1,500,000.
Short-term rentals have their own rules. They require coverage of 1.00 or higher and stop at $2,000,000. Income is twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase, counted at 80% of gross. Experienced investors only. 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.
Property type counts too. Warrantable and non-warrantable condos are both eligible, though non-warrantable condos cap at 75% and $1,500,000. Entity vesting is welcome, subject to program terms, though layered entities are not.
Here is one thing brokers see across large files. Borrowers often focus on the interest-only payment and ignore the appraisal. The rent estimate and the value both come from the appraisal. A low value cuts the LTV result, and a low rent estimate cuts the coverage result.
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.
Myths About Super Jumbo Limits
“Super jumbo is a legal category.” It is not. The term is a lender-built pricing and underwriting tier. The only government-set number in this conversation is the conforming loan limit. According to Orrick’s summary of the FHFA announcement, the current baseline one-unit limit is $832,750. The high-cost one-unit ceiling is $1,249,125, a figure Calculated Risk confirms when it quotes the FHFA release.
“The conforming limit caps my DSCR loan.” It does not. DSCR is a non-agency, non-QM product that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Scotsman Guide notes that non-QM jumbo loans can reach $3 million or more.
“Interest-only means a lower bar for every borrower.” Not quite. The program sets its own coverage minimum for interest-only files, 0.75 or better tested on ITIA, and the full-leverage benchmark stays at 1.00. What interest-only changes is the payment in the denominator, so the same rent produces a higher ratio.
“40-year means 40 years of interest-only.” It does not. On this program the interest-only period is 120 months.
Can You Afford the Largest Loan You Qualify For?
Qualifying and affording are different questions. The largest approved loan is a ceiling, and it may be higher than what makes sense for your plan.
Use this short checklist:
- Does the deal clear coverage on the interest-only basis and the amortizing basis?
- Do you hold at least 6 months of reserves, or 12 as a first-time investor?
- Can you carry the property if rent drops or a unit sits vacant?
- Do you have an exit before the reset, by refinance, sale or rent growth? These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
If one answer is no, size down. A smaller loan with a comfortable post-reset ratio usually beats a maximum loan that depends on everything going right.
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.
The complete DSCR loans guide covers the basics behind every program.
Key Terms Defined
DSCR (debt service coverage ratio): the property’s monthly rent divided by its monthly obligation. A higher number means more cushion.
ITIA: interest, taxes, insurance and association dues. It is the obligation used on interest-only loans, because principal is left out.
PITIA: principal, interest, taxes, insurance and dues. It is the obligation used on fully amortizing loans.
LTV (loan-to-value): the loan amount as a percentage of the appraised value or purchase price.
Super jumbo: a lender’s label for large balances. It has no regulatory definition.
Seasoning: the waiting period a program requires after a credit event or between purchase and refinance.
Frequently Asked Questions
What is the maximum loan on an interest-only super jumbo DSCR loan?
The portfolio investor program reaches $10,000,000, subject to underwriting. Above $4,000,000, every request is reviewed case by case, and it is purchase or rate-and-term only. Most borrowers will hit a leverage or coverage limit before the size ceiling.
Does interest-only let me borrow more than amortizing?
Often, yes, when rent coverage is the limit. Principal drops out of the obligation, so the same rent supports a larger balance. It does not help when leverage binds, and it adds a 75% LTV cap for interest-only structures. Some programs also test on an amortizing payment, so confirm the basis before you plan around it.
Do I need a minimum coverage ratio?
Coverage of 1.00 earns full leverage on this program. Interest-only files are qualified on ITIA with coverage of 0.75 or better. Select lenders in the network review lower coverage at reduced leverage, and LTV and terms adjust, subject to underwriting.
Can an LLC borrow, and is personal income required?
An LLC can borrow, subject to lender program eligibility, with entity documents and guaranties. The loan is business-purpose and qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, reserves and entity documents are still reviewed.
Can I use cash-out on a super jumbo loan?
Only at the lower tiers. Cash-out is unavailable above $3,000,000. Between $1,500,000 and $3,000,000, the ceiling is 60% on a cash-out, and proceeds are capped above that leverage.
Ready to Size a Deal?
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 in 41 markets, including Washington, D.C., through select lenders in its wholesale network. Call 828-256-2183 to talk through your file.
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 DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Orrick Infobytes: FHFA announces 2026 increases to conforming loan limits
2. Calculated Risk: FHFA announces baseline conforming loan limit
3. Scotsman Guide: One out of 20 mortgages are non-QM
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 Document a 40-Year Super Jumbo DSCR Loan · How to Document a Jumbo DSCR Loan · How Much Can You Borrow With a 40-Year Super Jumbo DSCR Loan?
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.