The Quick Read: It depends on loan size and occupancy, and through select wholesale programs, subject to full underwriting, a primary residence purchase under $1,000,000 can need as little as 10% down, while an investment property purchase between $3,000,000 and $4,000,000 needs about 40% down, and anything above $4,000,000 is reviewed case by case. The down payment also comes out of the same pool of assets that produces your qualifying income, so more cash down is not always better. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
- Occupancy sets the starting point. Second homes and investment property typically run about five points lower in leverage than a primary residence at the same size.
- Size pushes the number up. Maximum leverage steps down as the loan grows.
- Your assets do double duty. Cash for the down payment, closing costs and reserves leaves the pool before income is calculated.
- The asset allowance path caps at 80%. On that path, 20% down is the floor even where the size ladder would allow less.
Key Terms Defined
Loan-to-value (LTV) is the loan amount divided by the property value. The down payment is 100% minus the maximum LTV.
Asset depletion means qualifying on your liquid assets instead of traditional personal-income documentation or pay stubs. Across our wholesale network, it takes two forms. An asset allowance turns liquid assets into monthly income. An assets-only path skips the debt-to-income calculation when your U.S. liquid assets cover the loan plus closing costs and a set cushion for any net loss on other residential property.
Jumbo means a loan above the conforming limit, which in this program runs from $300,000 up to $30,000,000.
Non-QM is a mortgage that qualifies you outside standard agency rules, usually on documented assets or deposits.
Reserves are liquid funds you keep after closing, counted in months of payments.
What Sets the Down Payment on an Asset Depletion Jumbo?
Your down payment is whatever the lender’s maximum LTV leaves over. Across the programs we place files with, that ceiling moves with three things: loan size, how you will use the property, and the transaction type. Credit score then decides which tier you land in.
The table below shows purchase leverage ceilings through select wholesale programs, subject to full underwriting. Each cell shows the maximum LTV and the minimum down payment it implies.
| Loan size | Primary residence | Second home | Investment property |
|---|---|---|---|
| $300K–$1M | 90% LTV (10% down) | 85% (15% down) | 85% (15% down) |
| $1M–$2M | 85% (15% down) | 80% (20% down) | 80% (20% down) |
| $2M–$2.5M | 80% (20% down) | 80% (20% down) | 80% (20% down) |
| $2.5M–$3M | 80% (20% down) | 75% (25% down) | 75% (25% down) |
| $3M–$4M | 75% (25% down) | 65% (35% down) | 60% (40% down) |
| $4M–$5M, on review | 65% (35% down) | 65% (35% down) | 65% (35% down) |
Read the bottom row carefully. Every loan above $4,000,000 is reviewed case by case before submission, so 65% is a ceiling on review, not a promise. Past $5,000,000 the ladder keeps stepping down, and large files sit near 55% LTV on a primary residence on review. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Credit tiers rise with size too. Typical tiers run from 680 or better on smaller loans to 720 or better in the middle of the ladder, and 760 or better in some of the higher bands. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, the file also picks up overlays. These include a 700 credit floor, a clean recent housing history and no rural property.
Notice that second homes and rentals do not always move together. Between $3,000,000 and $4,000,000, an investment purchase tops out five points below a second home.
How Does the Down Payment Feed the Asset Math?
The down payment shrinks the very pool that qualifies you. In our experience the safest way to test a file is to subtract cash to close and reserves first, then convert what remains to income.
Here is the mechanism. Under the asset allowance path, the lender divides your eligible liquid assets by 36, 60 or 84 months. The 36- and 60-month divisors apply when the asset income supplements other income. The 84-month divisor applies when assets are your only income, or on any loan above $3,500,000. A longer divisor means less monthly income from the same pool.
Not every dollar you own counts at face value:
- Retirement accounts count at 70%, or 80% once you reach 59.5.
- Business funds, gifts, unvested stock and cryptocurrency never count.
- Trusts count only when they are revocable living trusts.
The asset allowance path is limited to primary residences and second homes, at 80% maximum LTV. An investment property usually points toward bank statements or a DSCR loan instead, subject to program review.
Run the numbers on one portfolio at two down payments
Picture a buyer with liquid assets equal to 150% of the purchase price of a primary residence under $1,000,000. These are modeled percentages, not market data.
At 10% down, the pool drops to about 140% of the price before closing costs and reserves. At 20% down, it drops to about 130%. The second buyer borrows roughly 11% less, but also loses about 7% of the pool that produces qualifying income. Closing costs and reserves then shave both pools further. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
For a buyer with a thick pool, that trade is easy. For a buyer whose assets barely clear the divisor math, the extra down payment can pull the approval under the line. Put another way, extra equity helps the loan and hurts the income at the same time.
Where the Cash Can Come From
Funds must be documented, and the source matters. Lenders want to see the money in your accounts, so statements from bank, brokerage or retirement accounts are the starting point. Any large recent deposit needs an explanation.
The practical sources look like this:
| Source | How it typically works |
|---|---|
| Cash on hand | Fine when seasoned and documented |
| Sale of securities | Common; the sale shrinks the depletable pool |
| Retirement withdrawal | Counted at a discount; access rules matter |
| Business funds | Never count toward the asset pool |
| Gifts | Excluded from the asset pool; down payment use varies by program |
Two points come up often. Selling stock to fund a down payment can create a tax bill and a smaller pool at once, so run both effects before you sell. Tax treatment varies; consult a qualified professional.
Also keep funds in place during the file. Moving money between accounts mid-process creates questions you then have to document.
Down Payment, Closing Costs and Reserves Are Three Buckets
Think of three buckets that all draw on the same assets. The down payment is the first. Closing costs are the second. Reserves are the third.
Reserves run 3 months on loans to $500,000, 6 months to $1,500,000 and 9 months above that, through select wholesale programs. Add 2 months for each additional financed property, up to a 12-month maximum. First-time investors are typically held to 12 months. On a cash-out, proceeds cannot satisfy reserves on loans above the super-jumbo line.
Buyers often size the down payment and forget the other two buckets. Then the file fails on liquidity even though the LTV works. Count all three before you commit to a number.
Primary, Second Home or Investment: Which Path Fits?
A primary residence gets the most leverage and the widest set of asset paths. A second home is limited to one unit and runs about five points lower in leverage. An investment property is a business-purpose loan, and it runs lowest in the upper bands of the ladder.
Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage. For a rental, ask which side of the file is stronger. If the rent comfortably covers the monthly obligation, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and your assets stay untouched. If rent is thin but your liquid assets are deep, an asset-based path may fit better. Our complete DSCR loans guide walks through how to compare the two.
Some borrowers add a third option. They buy with cash, then refinance. Where that route applies, the equity in the property replaces the down payment, and the cash-out ceilings are lower than purchase ceilings. On a primary residence under $1,000,000, cash-out tops out at 80%, so at least 20% equity stays in the home. Lendmire’s piece How Much a Jumbo Cash-Out Releases for a Retiree on Asset Depletion covers that angle in detail.
Is There a Federal Minimum Down Payment?
No federal rule sets one. The CFPB ATR/QM small entity compliance guide says the ability-to-repay rule does not ban any particular loan feature or transaction type. It sets no minimum down payment, so each program sets its own LTV.
The same guide lists current or reasonably expected income or assets as a factor the lender must consider. That is why qualifying on assets is a recognized path rather than a loophole. It is also why the lender still verifies your accounts.
How to Decide How Much to Put Down
Put more down when your asset pool has plenty of room above the income test. A smaller loan also reduces the monthly obligation and improves the leverage picture on the file. Put less down when the divisor math is tight, or when you need liquidity for reserves and a second property.
A short checklist helps:
1. Pick the occupancy and read the ceiling for your loan size.
2. Subtract cash to close and reserves from eligible assets, after the 70% or 80% retirement haircut.
3. Divide what remains by the divisor your path uses.
4. Check whether the resulting income supports the loan within the 50% debt-to-income limit.
5. If it fails, test a smaller down payment, a smaller purchase or a different path.
Credit matters on top of that. The portfolio program sets a 660 floor, the bank program 680, and 700 above the super-jumbo line. A stronger score can also move you into a better leverage cell.
Mistakes That Cost Borrowers Approval
- Sizing the down payment before running the income math. The number that feels right may leave too little pool.
- Counting business funds or gifts as assets. They never count in the pool.
- Assuming all rentals qualify the same way as a primary residence. The ladder is lower for investment property, and the asset allowance path excludes it.
- Ignoring the case-by-case line. Above $4,000,000, the table is a starting point, not a quote.
- Moving money mid-process. Large transfers need paper trails.
Lendmire’s piece How Much Equity Jumbo Cash-Out Leaves an Asset-Depletion Retiree shows what equity looks like after the file closes.
Frequently Asked Questions
What is the smallest down payment possible?
Through select wholesale programs, subject to full underwriting, it is 10% on a primary residence purchase under $1,000,000. That cell also needs a stronger credit tier. If you use the asset allowance path, its 80% cap means 20% down instead. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Does an investment property need more down than a primary home?
Typically yes. Second homes and investment property generally run lower in leverage than a primary residence at most sizes. In the $3,000,000 to $4,000,000 band, the investment ceiling is 60% LTV, which means about 40% down, compared with 25% down on a primary residence.
Can I use retirement funds for the down payment?
Often yes, but they count at a discount in the asset pool, at 70% or 80% once you reach 59.5. Access rules and documentation vary by program. Run the math before you withdraw, since the withdrawal also shrinks the pool.
Are gift funds allowed?
Gifts never count toward the asset pool that qualifies you. Whether a gift can help with the down payment itself depends on the program and the file, so check before you rely on one.
Is this available in my state?
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. Programs change, and every file is underwritten individually.
Next Step
If you are financing a high-balance property on your assets rather than income documents and want to see how the numbers work, Lendmire can help you compare super jumbo asset-qualification options based on your liquid assets, the property, credit profile, leverage and your goals. Lendmire is a broker that shops multiple wholesale programs. Nothing here is a commitment to lend.
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 ATR/QM Small Entity Compliance Guide (2021)
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 to Take Out a Pledged Asset Line With a Super Jumbo Bank Statement Loan · Can an Executive With No Job Qualify for a Super Jumbo Loan? · How Much Down Payment Does a Non-Warrantable Condo Need on a Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.