The Quick Read: Usually somewhere between 10% and 25% down on a primary residence up to $4,000,000, through select wholesale programs and subject to full underwriting, with second homes and investment property running about five points higher and the percentage climbing as the loan gets larger. The down payment is not extra money. It comes out of the same asset pool the loan is reviewed on, so more down means less qualifying income.
- Leverage steps down as loan size goes up, so the minimum down payment steps up.
- Above $4,000,000, every file is reviewed case by case before submission.
- Closing costs and reserves also come out of the pool before income is calculated.
- Asset-based qualifying with a divisor is for primary and second homes. Rental purchases usually fit other paths better.
Key Terms Defined
LTV (loan-to-value): The loan amount as a percentage of the property’s price or value. A 90% LTV means 10% down. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Liquid assets: Money you can reach without selling real estate, such as cash, brokerage accounts, and a discounted share of retirement accounts.
Asset allowance: A path that divides your liquid assets by a set number of months to create monthly qualifying income.
Divisor: The number of months (36, 60, or 84) your assets are divided by under asset allowance.
Assets-only: A path with no debt-to-income test. Your U.S. liquid assets must cover the loan plus costs.
Reserves: Months of housing payments you must still hold in liquid funds after closing.
Non-QM: A loan that sits outside standard agency guidelines, so each program sets its own rules.
What Actually Sets the Minimum?
The program’s leverage cap sets it. No law hands you a flat percentage. Each wholesale program publishes a maximum LTV for your loan size, occupancy, and transaction type, and your minimum down payment is simply 100% minus that number.
Three things move the cap:
- Loan size. Bigger loans get lower LTVs.
- Occupancy. Second homes and investment property run lower than a primary residence.
- Credit tier. The top leverage cells require higher scores, often 700 to 760.
Naming varies too. Some lenders say asset qualifier, some say asset depletion, and a few use the terms for different products. Across the wholesale network Lendmire works with, the practical split is two paths. Asset allowance divides liquid assets by a divisor. Assets-only needs liquidity equal to the loan plus costs. Ask which one a quote is built on before you compare down payments.
Down Payment by Loan Size and Occupancy
Here is the minimum down payment at the highest available leverage on a purchase, by band. Every figure is a ceiling-based estimate through select wholesale programs, subject to full underwriting. Credit floors rise with size.
| Loan size | Primary home | Second home | Investment |
|---|---|---|---|
| To $1,000,000 | 10% | 15% | 15% |
| $1M to $2M | 15% | 20% | 20% |
| $2M to $3M | 20% | 20–25% | 20–25% |
| $3M to $4M | 25% | 35% | 40% |
A few things the table hides.
The 10% cell needs a 680 credit score, and the 25% cell in the top band needs a 760 on the $3,500,000 to $4,000,000 slice. Most programs in the network start at a 660 floor. Super-jumbo overlays push that to 700 once the loan passes $3,500,000 on a primary home or $3,000,000 on a second home or investment property.
The gap between primary and second-home or investment leverage is about five points at smaller sizes. It widens in the top bands. That is why the investment column jumps to 40% down at $3,000,000 and up. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Above $4,000,000, nothing is a flat number. Those files are reviewed case by case before submission. On a primary residence purchase, the bank portfolio program’s ladder runs 65% LTV to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, each on review. Second homes and investment property run about five points lower. Plan on 35% to 45% down at those sizes, and treat any single quote as a starting point. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
One more ceiling. Asset allowance, the divisor path, tops out at 80% LTV. So even a 10% down primary-residence purchase usually runs on a different documentation path, such as bank statements, rather than assets alone.
Why More Down Means Less Qualifying Income
Because the down payment is paid from the same pool the loan is reviewed on, each extra dollar down reduces the income the loan can show. This is the part first-time borrowers miss, and it is the real trade-off.
Here is the sequence on a file that is reviewed on asset allowance:
1. Pool your eligible assets. Cash, brokerage accounts, and a discounted share of retirement funds.
2. Subtract cash to close. That means the down payment and closing costs.
3. Subtract required reserves.
4. Divide what is left by the divisor. The result is monthly qualifying income.
5. Test it against your debts. On this path, DTI (debt-to-income) can run to 60% when assets supplement other income at the 36-month divisor.
The effect is easy to size without any dollars. A borrower who puts down a much larger share on the same purchase pulls a large block out of the pool. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Which divisor you get depends on the file. The network uses 36 months when assets supplement other income and DTI sits at or below 60%. It uses 60 months when DTI is above 60%. It uses 84 months for standalone asset qualifying or any loan above $3,500,000. A longer divisor spreads the same pool thinner, so large loans need a lot more liquidity.
Picture a physician with a big brokerage balance and irregular partnership income. A larger down payment may cut the interest she pays over time. It may also drop her qualifying income below the line. The stronger play is often to hold a bit more cash back and use the higher-leverage cell. A bank-statement path can help too, if her deposits tell the income story better than her assets do.
The Liquidity Stack: What You Need Besides the Down Payment
Think of liquidity as a stack, and the down payment is only the bottom layer. In order:
- Down payment. Set by the leverage cap above.
- Closing costs. These come out of the pool too.
- Reserves. Typically 3 months to $500,000, 6 months to $1,500,000, and 9 months above. Add 2 months for each additional financed property, up to a 12-month maximum. First-time investors typically need 12 months.
- What remains. This is the pool that creates income.
Assets-only follows a different test. It has no DTI. Your U.S. liquid assets must equal the loan amount plus closing costs, plus sixty months of any net loss on your other residential property. That is a steep ask. It suits borrowers who are asset-rich and have almost no income to document.
Reserves are one place where borrowers get surprised. On a cash-out refinance, the proceeds cannot be used to satisfy reserves. That rule is part of the super-jumbo overlays and applies above $3,500,000 on a primary home and $3,000,000 on a second home or investment property. If you plan to fund reserves from a refinance, Lendmire’s piece on how much down payment a cash-out refinance funds shows how the pieces fit.
Which Assets Count (and Which Never Do)
Not all wealth counts. Liquid, verifiable, U.S.-held assets count. Real estate equity does not. Here is how the network treats common holdings:
- Cash and brokerage accounts. Count in full, with statements.
- Retirement accounts. Count at 70%, or 80% if you are 59½ or older.
- Revocable living trust assets. Count toward qualifying assets.
- Business funds, gifts, other trusts, unvested stock, and cryptocurrency. Never count.
That last line surprises people. A founder whose wealth sits in company cash or crypto may qualify for far less than net worth suggests. Anything sitting in the business account has to be moved to a personal account, and the move must be seasoned and documented. Transfers from your own business into your personal account count at 100% on a bank-statement file. They do not turn into qualifying assets on an asset file.
Assets need statements, and the lender relies on them. The CFPB’s Regulation Z ability-to-repay provision confirms that a creditor may base a repayment decision on income, on assets other than the dwelling, or on both. Cornell Law School’s text of the rule adds that the lender must verify those assets with reasonably reliable third-party records. Asset qualifying skips traditional personal-income documentation. It does not skip proof.
For wider context on how Lendmire structures these files, the complete DSCR loans guide walks through the other documentation options.
Buying a Rental? Pick the Path First
Asset allowance is built for primary and second homes. For a rental purchase, other paths usually fit better, so the down payment question changes.
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.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Some lenders in the network review files below 1.00 coverage, but leverage and terms adjust when they do. That matters for an asset-rich investor because it keeps your liquidity out of the qualifying math.
A bank-statement loan fits a self-employed investor whose deposits are strong. It runs on 12 or 24 months of personal or business statements after an expense ratio. On investment property purchases in the $300,000 to $1,000,000 band, leverage typically reaches 85% through select wholesale programs, subject to full underwriting. That means 15% down.
Which one wins? It is a genuine toss-up on many files. Asset qualifying rewards a big liquid balance. DSCR rewards a property that pays for itself. Bank statements reward strong deposits. A more affordable down payment on paper is not always the best fit once you count how each path treats your pool.
Common Mistakes
Assuming a large pool means almost no down payment. The leverage cap sets the floor, not the size of your assets. Big balances do not unlock higher LTV.
Counting the same dollars twice. The down payment, closing costs, and reserves all come from one pool. You cannot also count them as qualifying assets.
Forgetting what never counts. Gifts, business funds, and cryptocurrency never count toward qualifying assets, and real estate equity is not liquid.
Moving money late. Large deposits and transfers get questioned. Move funds into the account well before applying, and keep the paper trail clean.
Reading a quote’s LTV without its occupancy. A 90% figure is a primary-residence number at loan sizes up to $1,000,000. Never assume it applies to a second home, an investment, or a larger loan. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Overlooking tax. Tax treatment varies; consult a qualified professional before relying on any deduction.
A Pre-Application Checklist
Before requesting a quote, line these up:
- Two months of statements for every account you plan to use, plus the full history if a large deposit appears.
- A clear plan for how much sits in each layer of the stack.
- Your credit tier, since the highest-leverage cells carry 700 to 760 floors.
- A list of any other financed properties, because each adds reserve months.
- The occupancy you intend: primary, second home, or investment.
- If the loan lands above $4,000,000, expect a case-by-case review before anything is submitted.
Programs change, and every file is underwritten individually. 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. A borrower in another state should treat this article as general education.
Frequently Asked Questions
Can I put less than the minimum if I have a very large asset pool?
Not on the same program. The leverage cap defines the floor, and a bigger pool does not raise it. What a bigger pool does is help you clear reserves and DTI. The higher-leverage cells also tend to require higher credit scores, often 700 or better, and some sizes want 720 to 760.
Does the down payment come out of my qualifying assets?
Yes. On an asset-allowance file, cash to close and reserves come out of the pool first. The remainder is divided by the divisor to produce monthly qualifying income. A larger down payment therefore means a smaller pool and lower income.
Do gift funds or business funds count?
They do not count toward qualifying assets. Gifts, business funds, unvested stock, and cryptocurrency never count. Whether a gift can help with cash to close varies by program, so ask the broker before assuming. Retirement accounts do count, at 70% (80% once you reach 59½).
Is the down payment the same for a second home or a rental?
No. Second homes and investment property run about five points lower in LTV at most sizes, which means about five points more down. In the $3,000,000 to $4,000,000 band, the gap is wider. The investment cell there is 60% LTV, or 40% down. Asset allowance itself is for primary and second homes, so rental buyers usually look at DSCR or bank-statement paths.
What happens above $4,000,000?
Every loan is reviewed case by case before submission. The bank portfolio program’s ladder runs 65% LTV to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, each on review. Treat those as ceilings, not promises. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Next Step
Reach the team at 828-256-2183 or request a quote.
The smartest down payment is rarely the smallest or the largest, but the one that leaves your asset pool strong enough to carry the loan.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
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 non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
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References
1. CFPB – Regulation Z § 1026.43
2. Cornell LII – 12 CFR § 1026.43
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 Can Authors Qualify for a Jumbo Mortgage With Bank Statements? · Bank Statement Loan vs Asset Depletion Loan for Physicians · How Actors Qualify for a Jumbo Mortgage With Bank Statements
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.