The Quick Read: It depends on loan size, occupancy and credit, but the pattern is steady. Through select wholesale programs, a primary residence purchase in the smallest loan band can reach a high loan-to-value ratio, which means a modest down payment. Second homes and investment property need the same equity or more, depending on loan size, and required equity climbs as the loan grows, subject to full underwriting. High income does not shrink the number. The program’s leverage ladder sets it. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
- Primary residence, purchase: roughly 10% down at the smallest loan sizes, stepping up to 15%, 20% and 25% as the loan grows.
- Second home or investment property: the gap versus a primary residence runs from none at $2M–$2.5M to 5 points in most bands, and 10 to 15 points from $3M up.
- Above $4,000,000: every file is reviewed case by case before submission, so treat any figure there as a starting point.
- Cash to close: the down payment is only one piece. Closing costs and post-close reserves sit on top. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What “Down Payment” Means on These Loans
The down payment is the purchase price minus the loan. The loan is capped by a maximum loan-to-value ratio (LTV), which is the loan amount divided by the property’s value. A 90% LTV means 10% down. An 80% LTV means 20% down. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
So you never negotiate a down payment directly. The program sets a leverage ceiling for your loan size, property use and credit tier. Your down payment is whatever is left over.
A bank statement mortgage is reviewed around documented deposits instead of traditional personal-income documentation. The lender reads 12 or 24 months of personal or business statements and applies an expense ratio to business deposits. That is how a founder, physician, attorney or entertainer whose returns understate real income can still qualify. The documentation changes how your income is measured. It does not change how much equity the program wants.
The Ladder: Down Payment by Loan Size and Occupancy
Leverage steps down as the loan gets bigger, because the lender holds more risk on a large balance. The table below shows the down payment implied by the maximum purchase LTV in each loan-size band, through select wholesale programs, subject to full underwriting. These are ceilings on leverage, so your down payment is the minimum.
| Loan size | Primary residence | Second home | Investment property |
|---|---|---|---|
| $300K–$1M | 10% down | 15% down | 15% down |
| $1M–$1.5M | 15% down | 20% down | 20% down |
| $1.5M–$2M | 15% down | 20% down | 20% down |
| $2M–$2.5M | 20% down | 20% down | 20% down |
| $2.5M–$3M | 20% down | 25% down | 25% down |
| $3M–$3.5M | 25% down | 35% down | 40% down |
| $3.5M–$4M | 25% down | 35% down | 40% down |
Credit requirements rise along with the loan. The smallest band asks for roughly 680 or better on a primary residence purchase. Mid-size bands typically want 700 to 720. The $3.5M-to-$4M primary residence band calls for around 760. Second-home and investment-property credit minimums vary by band, and the file is reviewed subject to the program’s guidelines.
Above $4,000,000, the answer changes shape. Every file at that size is reviewed case by case before submission. A bank portfolio program takes over the top of the range, carrying twelve-month-statement files to $30,000,000. Its ladder runs 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, which means 35% to 45% down on review. Those figures are ceilings that apply on review, never promises. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Why a High Income Doesn’t Shrink the Down Payment
Many high earners assume strong deposits should buy them leverage. They buy qualification, not equity. Income answers one question: can you carry the payment? Equity answers a different one: how much loss can the lender absorb if the property value drops?
These are non-QM loans. Non-QM means the loan sits outside the standard rules for agency-style mortgages, and lenders hold the risk on their own books or sell it to investors who want a margin of safety. That margin shows up as equity. A physician with seven figures in annual deposits and a founder with a modest but steady operating business face the same ceiling at the same loan size, occupancy and credit tier.
The tradeoff runs the other way too. A bigger down payment never hurts a file, and across the wholesale network Lendmire places files with, more equity can improve how a lender views the loan. How that translates into terms varies by program, so this article does not put numbers on it.
Three Worked Examples
These are modeled illustrations, not market data. Each uses percentages from the ladder above and no monthly dollar figures.
A founder buys a primary residence. The loan lands in the smallest band, and her credit sits in the 680-plus tier. The program allows 90% LTV on a primary residence purchase, so she puts at least 10% down. That is the floor, and many files land above it. Every figure here varies by lender and program, since guidelines, property type, leverage, and credit profile all apply.
A physician buys a vacation home. The loan falls in the $1.5M-to-$2M band, and his credit is 700 or better. A second home purchase tops out at 80% LTV in this band, so he needs at least 20% down. If he wanted the same loan on a primary residence, the ceiling would be 85%. Occupancy alone moves his equity requirement by five points. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
An investor is making a large primary residence purchase. The loan sits between $3.5M and $4M, and her credit is around 760. The ceiling is 75% LTV on a primary residence purchase, so she needs 25% down. A rate-and-term refinance in that band tops out lower, at 70%. Cross $4,000,000 and the answer moves to case-by-case review, with the bank program’s 65% ceiling to $5,000,000 on review as a starting point. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
The Super Jumbo Overlays
Past a certain size, programs layer extra conditions on top of the leverage ladder. They apply above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
- A 700 credit floor.
- A clean housing payment history, with no 30-day lates in the prior 24 months.
- 48 months since any credit event.
- U.S. citizens or permanent residents only.
- No non-occupant co-borrowers and no rural property.
- Ten acres maximum.
- Cash-out proceeds cannot satisfy reserve requirements. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
If you have a recent credit event, expect more equity or a different program. Recent events commonly raise the required equity even below the super-jumbo line. Lenders treat them as a signal of risk, and the cure is usually a smaller loan relative to value.
The size line itself comes from the conforming limit, which is the ceiling on loans that agency-style lenders buy. Anything above it is jumbo territory, which is where bank statement programs earn their keep. Agency loans carry their own LTV rules for each occupancy type, and those rules don’t govern a bank statement file.
Property Type Moves the Number Too
Beyond loan size and occupancy, the property itself can lower your ceiling.
- Warrantable condos go to 85% LTV through select programs. Non-warrantable condos stop at 80%.
- Condotels top out at 75% on a purchase and 65% on a cash-out.
- Two-to-four-unit properties can reach 85% on a primary residence purchase.
- Second homes are one-unit only.
- Rural property goes to 80% on ten acres or less and is not available above $3,000,000. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
If you are buying something other than a standard single-family home, check the property cap before you plan your cash.
Refinances: Your Equity Is the Down Payment
On a refinance, you don’t write a check for a down payment. The equity you leave in the property plays the same role. A cash-out on a primary residence tops out at 80% LTV in the smallest band, then steps down to 75%, 70% and 65% as the loan grows. Above $4,000,000 the case-by-case review applies there too. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Cash-out has its own size rule. Above 60% LTV, the portfolio program caps cash in hand at $1,500,000. At or below 60% LTV, proceeds are unlimited. The bank program publishes no cap. Cash-out proceeds cannot satisfy reserves on files above the super-jumbo line. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Cash to Close: The Real Number
Your down payment is not your total cash requirement. Plan for three layers:
1. The down payment, set by the ladder.
2. Closing costs, which vary by property, state and file.
3. Reserves, which are liquid funds left in your accounts after closing.
Across most programs in the network, reserves scale with loan size. They run 3 months up to $500,000, 6 months up to $1,500,000 and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors are typically asked for 12 months.
This is where high earners stumble. They put every available dollar into the down payment to hit a lower-leverage tier, then discover they are short on reserves. Run all three layers together before you commit to a price.
Where the Down Payment Can Come From
Lenders want to see where the money came from. Large or recent deposits draw questions, so document them. Savings, brokerage accounts and proceeds from a property sale are the usual clean sources. Whatever the source, disclose it. A down payment that appears from nowhere stalls a file.
Two cautions matter for high earners with complex finances. First, personal-account transfers from your own business count in full when the lender calculates qualifying income. That is separate from using business funds for the down payment, which each program treats on its own terms. Keep your business and personal accounts clean and consistent.
Second, the asset-based paths follow different rules. On the asset allowance and assets-only paths, retirement accounts count at 70% of their value, or 80% once you reach 59½. Business funds, gifts, cryptocurrency, unvested stock and most trusts do not count as qualifying liquid assets. Those paths apply to primary and second homes. Lendmire’s piece How to Source a Down Payment on a Second-Home Bank Statement Loan covers the funding side in more detail.
12 Months or 24 Months: Does It Change the Down Payment?
No. The statement length changes how your income is averaged, not how much equity the ladder demands. The portfolio program accepts 12 or 24 months of consecutive personal or business statements. The bank program uses 12. Business statements require at least 25% ownership.
Qualifying income is eligible deposits divided by the statement months, after an expense ratio. Fixed ratios run 20% for a service business with no employees, 40% for one to five employees and 50% for six or more employees or any product business. An accountant-provided ratio or a profit-and-loss method capped at 80% are alternatives.
Longer statements can help if your recent months were stronger or weaker than your average. But the leverage ladder stays the same either way. Debt-to-income can run up to 50%, so a larger down payment can also help the qualifying math by shrinking the new obligation.
The Investor Decision: Bank Statement or DSCR?
If you will live in the property, bank statements usually fit. If it is a pure rental, DSCR often fits better. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The bank statement route tests you, the borrower, and the new payment counts against your debt-to-income room. So every additional property uses up some of that room.
Self-employed investors can go either way. Which path wins depends on the property’s rent, your deposits and how many properties you already finance. Lendmire’s complete DSCR loans guide walks through the DSCR side of that comparison.
Equity is a capital-allocation decision. Every extra point down is cash that can’t fund reserves, the next acquisition or your business. A reasonable approach is to put down at least the program minimum, keep reserves above the requirement and weigh any pricing benefit of lower leverage against what the cash could do elsewhere. 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.
Non-QM Still Means Documentation
Some borrowers hear “alternative documentation” and expect a shortcut. It isn’t one. The lender still has to make a reasonable, good-faith determination that you can repay, and it has to verify what it relies on with reliable records. The CFPB’s small-entity guide to the ability-to-repay rule describes that duty. Bank statements are the documentation. They do not waive it.
Common Mistakes
- Assuming income lowers equity. It doesn’t. Size, occupancy and credit do.
- Using all your cash on the down payment. Reserves are a separate requirement, and cash-out proceeds can’t cover them above the super-jumbo line.
- Moving money around before you apply. Unexplained transfers and large deposits create documentation questions.
- Commingling accounts. Mixing personal and business funds muddies both the income calculation and the source of funds.
- Quoting one national number. Programs differ. Treat any single figure as a range and ask what applies at your loan size.
- Ignoring the property type. A non-warrantable condo or condotel carries a lower ceiling than a single-family home.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the property’s value. A lower LTV means a bigger down payment.
Non-QM: A loan that sits outside standard agency-style mortgage rules. Qualification can run on deposits, assets or property cash flow.
Expense ratio: The percentage subtracted from business deposits to estimate the owner’s take-home income.
Reserves: Liquid funds you hold after closing, measured in months of the obligation.
Super jumbo: A very large loan, usually well above the conforming limit. At this size programs add credit and documentation overlays.
Debt-to-income (DTI): Your monthly debts divided by qualifying monthly income. Bank statement programs allow up to 50% on most files.
Frequently Asked Questions
Can I put 10% down on a bank statement mortgage if I earn a lot?
Only in the smallest loan band and only on a primary residence purchase. Through select wholesale programs, a loan in that band can reach 90% LTV with credit of around 680 or higher, subject to underwriting. In larger bands the ceiling drops to 85% or lower, and no program in the network goes to 90% at those sizes.
Does a second home or investment property need more down?
Usually, yes. Second homes and investment property typically run lower in leverage than a primary residence at the same loan size. The gap varies by loan size and program: none at $2M–$2.5M, a smaller gap in most bands, and a wider one from $3M up. Second-home loans are limited to one unit.
What happens to the down payment above $4,000,000?
Every file above that size is reviewed case by case before submission. The bank portfolio program’s ladder gives a starting point: 65% LTV to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000 on a primary residence purchase. Second homes and investment property sit lower. Treat those as ceilings on review, not offers.
Can a gift or my business account fund the down payment?
Treatment varies by program, and the source of funds must always be disclosed and documented. For asset-based qualification, gifts and business funds do not count as liquid assets, while retirement accounts count at 70%, or 80% at age 59½ or older. Ask which rules apply before you move any money.
Do I need reserves on top of the down payment?
Yes. Across most programs reserves run 3, 6 or 9 months depending on loan size, with 2 more months for each additional financed property up to 12. Plan cash to close as down payment plus closing costs plus reserves.
Next Step
Lendmire is a broker that shops multiple wholesale programs, not the lender, and every parameter above is a ceiling through select wholesale programs, subject to full underwriting and not a commitment to lend. Its 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. Lendmire’s complete guide to bank statement mortgages for high earners goes deeper on documentation.
Buyers at this price level rarely run short on income; the ones who stall usually mis-sized cash across the down payment, closing costs and reserves.
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
A DSCR-focused mortgage broker, Lendmire (NMLS# 2371349) places investor financing across 41 markets — 40 states plus Washington, D.C. — with DSCR eligibility generally reviewed by the lender on property cash flow instead of traditional personal-income documentation, subject to lender guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in 2025 and 2026.
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References
1. CFPB Ability-to-Repay/Qualified Mortgage 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 Much Down Payment Does an Interest-Only Super Jumbo Bank Statement Loan Need? · How Much Can Influencers Borrow With a Bank Statement Loan? · How Much Can You Borrow With a Super Jumbo Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.