The Quick Read: It depends on how you will use the home, but on a primary residence the strongest files typically need about 25% down, because leverage through select wholesale programs steps down to a 75% ceiling in the loan band a $5 million purchase falls into, and that ceiling comes with a 760 credit tier. A second home usually needs closer to 35% down. An investment property usually needs closer to 40% down. Every figure is a ceiling that is subject to full underwriting, and nothing here is a commitment to lend.
- There is no single minimum. The ceiling steps down as the loan grows, so the cash you need rises with it.
- On a purchase, the ceiling is about 75% LTV on a primary residence, about 65% on a second home and about 60% on an investment property.
- Ten percent down is a real number in the market, but through Lendmire’s network it stops at loans of $1,000,000.
- Closing costs and reserves sit on top of the down payment.
- A bigger down payment does not replace the deposit-based income test. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What Actually Sets the Down Payment at $5 Million?
The loan band sets it. Wholesale programs publish a leverage ceiling for each band of loan size, and that ceiling shrinks as the band climbs. Your down payment is the price minus the loan, so a lower ceiling means more cash from you.
Here is how that plays out for a $5 million purchase through select wholesale programs, subject to full underwriting.
| Occupancy (purchase) | Typical ceiling | Cash down | Credit tier |
|---|---|---|---|
| Primary residence | 75% LTV | About 25% | 760+ |
| Second home | 65% LTV | About 35% | 760+ |
| Investment property | About 60% LTV | About 40% | 700+ |
A 75% loan on a $5 million price lands in the $3.5 million to $4 million loan band. On a primary-residence purchase, that band carries a 75% ceiling at the 760 credit tier. The 80% ceiling you see lower on the ladder belongs to smaller loans, so it does not reach this price.
Second homes run lower than a primary residence at each size. In the band above, the second-home ceiling is 65% against 75% for a primary residence. Investment property runs lower still once loans pass $3 million. The investment figure is approximate because a 60% loan sits right at a band boundary, so the file decides which band applies.
Anything above $4 million in loan size is reviewed case by case before submission. A $5 million price at the ceilings above stays below that line. A buyer reaching for more leverage than the ceiling moves into case-by-case territory, not into a standard approval.
Is 10% Down Realistic on a $5 Million Home?
The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Rarely. Ten percent down exists in this market, but it belongs to smaller loans. Through Lendmire’s network, 90% leverage on a primary-residence purchase stops at $1,000,000, and it never applies above that size. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Market surveys do report higher leverage. Scotsman Guide notes that some non-QM lenders will lend to loan-to-value ratios as high as 90% with no mortgage insurance. That is a market-wide ceiling for the strongest files, and it does not describe a typical large loan.
The network figure is the one that matters here: 75% on a primary-residence purchase at the 760 tier, in the band this price reaches. Consumer guides such as NerdWallet describe jumbo down payments in a 10% to 20% range. At $5 million, plan above that range.
Why does leverage tighten with size? A larger loan means a larger loss if something goes wrong. Wholesale programs respond by asking for more equity, a higher credit tier and more reserves.
How Credit, Property Type and Loan Size Move Your Number
Credit, occupancy and loan size are the three biggest levers. Credit and occupancy change the ceiling for the same price, and loan size changes the band you land in.
| Factor | What changes | Direction |
|---|---|---|
| Credit score | Lower tier, lower ceiling | More down |
| Occupancy | Second home or investment | More down |
| Loan size | Higher band | More down |
| Property type | Condo or rural | Sometimes more down |
| Reserves | Higher loan size | More cash held back |
A few specifics, all through select wholesale programs and subject to underwriting:
- Credit floors. The portfolio non-QM bank-statement program varies by scenario. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Above the super-jumbo line, 700 is the floor. That line sits at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
- Credit and the loan band. A borrower with 720 credit instead of 760 may need to aim for the $3 million to $3.5 million loan band. That band carries 75% on a primary-residence purchase at 720+, which means a lower loan and roughly 35% down.
- Property type. Warrantable condos run up to 85% and non-warrantable condos to 80% at smaller sizes, but the size ladder still applies at this price. Second homes are one-unit only.
- Super-jumbo overlays. Above those size lines, programs typically add a 0x30x24 housing history, 48 months of seasoning after a credit event, U.S. citizenship or permanent residency, and no non-occupant co-borrowers.
The bank portfolio program has its own ladder for larger balances: 65% to $5,000,000 in loan size, 60% to $10,000,000 and 55% to $30,000,000, each on review. A $5 million purchase rarely needs it unless the loan itself is above $4,000,000.
What Does a $5 Million Closing Really Cost in Cash?
The down payment is only part of it. Plan for the down payment, closing costs and prepaid items, and reserves held after closing.
Earnest money counts toward the down payment, so it reduces what you wire at closing. It does not reduce the total.
Reserves matter more at this size. Programs typically ask for 3 months of reserves on loans up to $500,000, 6 months up to $1,500,000 and 9 months above that. Each additional financed property adds about 2 months, up to a 12-month maximum. First-time investors are typically asked for 12 months.
Reserves must be separate cash. On a cash-out file, proceeds cannot satisfy reserves above the super-jumbo line. In practice, a buyer who puts every liquid dollar into the down payment may fail the reserve test even though the leverage fits.
Where Can the Down Payment Come From?
From funds that can be traced and documented. Savings, investment accounts and sale proceeds from another property are the usual sources, and the file needs statements showing where the money sat and how it moved. Lendmire’s piece How to Source a Down Payment on a Second-Home Bank Statement Loan walks through that paper trail.
Business owners have one extra question. Business funds can be a sensitive source, and the answer depends on the program and how the money moves. Pulling cash from the business also affects the deposits that qualify you.
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.
Does a Big Down Payment Replace the Income Test?
No. The down payment sets leverage, and deposits set income. They are separate tests.
On a bank statement file, qualifying income comes from 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12. Scotsman Guide describes the same 12-to-24-month window and notes that lenders apply an expense factor to business deposits.
Across Lendmire’s wholesale network, the math works this way:
1. Eligible deposits are added up over the statement months.
2. An expense ratio is applied to business deposits. Lenders commonly use fixed ratios that scale with the size of the business, and these tend to be lower for a service business with no employees and higher for businesses with more employees or any product business. An accountant-provided ratio can replace them.
3. The result is divided by the statement months to produce monthly qualifying income.
4. Debt-to-income can run up to 50%, subject to lender guidelines.
Transfers from your own business into your personal account count in full, which helps owners who pay themselves that way. Business statements need at least 25% ownership. Statements must be consecutive, and a transaction history never substitutes for them.
A lower loan from a bigger down payment does help the income test, because the payment you must cover shrinks. It does not help if the deposits are thin or inconsistent. Not every deposit counts, since one-time deposits and borrowed funds can be excluded.
Non-QM does not mean skipping repayment analysis. The CFPB’s ability-to-repay guide says lenders must make a reasonable, good-faith determination that the borrower can repay. It sets no down-payment floor, which is why program guidelines drive the number.
What Happens If the Appraisal Comes in Low?
You pay the gap in cash. Leverage is measured against the lower of the contract price or the appraised value. If the appraisal lands 5% under a $5 million contract, the loan is sized to the lower value, and you cover that 5% on top of your down payment.
At these prices, appraisals can be harder to support. Unique homes have fewer comparable sales, and programs at this size often want a second review. Before you waive an appraisal contingency, make sure your cash covers a shortfall as well as the planned down payment.
What Are the Alternatives at This Price?
The right path depends on where your strength sits: deposits, liquid assets or property rent.
| Path | Reviewed on | Best for |
|---|---|---|
| Bank statement | Deposits after expense ratio | Self-employed owners |
| Asset allowance | Liquid assets over 36-84 months | Asset-rich, lumpy income |
| Assets-only | Liquid assets, no DTI | Large liquid balances |
| DSCR | Rent covering the payment | Rental purchases |
On an asset allowance, liquid assets are divided by 36 months, 60 months or 84 months, depending on the loan and the DTI. Eighty-four months applies to standalone use or any loan above $3,500,000. This is for primary and second homes only, with an 80% maximum. Assets-only qualifies with no DTI when U.S. liquid assets equal the loan plus closing costs. Retirement accounts count at 70%, or 80% at age 59½ and up. Business funds, gifts and cryptocurrency never count on these paths.
If the $5 million property will be rented, a DSCR loan is a different route. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide explains how it works. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust. A strong-deposit owner with a weak-rent property may prefer a bank statement loan. A strong-rent property with complicated personal income may fit DSCR better.
Key Terms Defined
Loan-to-value (LTV): The loan amount divided by the lower of price or appraised value.
Loan band: A range of loan sizes that shares one leverage ceiling in a program’s ladder.
Reserves: Liquid funds you hold after closing, counted in months of payment.
Expense ratio: The share of business deposits treated as costs before income is calculated.
Super-jumbo line: The loan size above which programs add stricter credit and documentation overlays.
Is $5 Million Realistic for Your File?
Run through these questions before you shop a price.
- Is the home a primary residence, second home or investment? Your answer sets the ceiling.
- Is your credit at the 760 tier, or closer to 700? Lower tiers mean more down.
- Can you cover roughly 25% to 40% down, plus closing costs, and still keep 9 months of reserves?
- Do 12 or 24 months of eligible deposits support the loan after the expense ratio?
- Could you cover a low appraisal in cash without breaking reserves? Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
If two or more answers are no, adjust the target price, the occupancy plan or the documentation path first. The loan type is rarely the problem. Late in a search, adding a co-purchase or restructuring leverage costs more than starting with the right price.
Frequently Asked Questions
Can I put 10% down on a $5 million home with a bank statement loan?
Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Not through Lendmire’s network on a purchase of this size. The 90% leverage tier stops at $1,000,000 in loan size. At this price, the primary-residence ceiling is about 75%, and it comes with a 760 credit tier, subject to underwriting. Market surveys report higher leverage for exceptional files, but those figures do not describe typical large loans. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Is 20% down enough on a $5 million primary residence?
Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Usually not. A 20% down payment means an 80% loan, and the ceiling for a loan in the $3.5 million to $4 million band is 75%. Loans above $4,000,000 are reviewed case by case. Plan for about 25% down at the strongest credit tier, and more at lower tiers or on a second home.
How many months of reserves do I need?
Programs typically ask for 9 months on loans above $1,500,000, plus 2 months for each additional financed property, up to 12 months. On a cash-out file, proceeds cannot count toward reserves above the super-jumbo line.
Can I use business funds for the down payment?
It depends on the program, how the money is held and how it moves. Business funds never count toward asset-based qualification, which is a separate matter.
Does a bigger down payment mean I need fewer bank statements?
No. Income still comes from 12 or 24 months of consecutive statements, or from an asset path or a P&L method where the program allows it. A bigger down payment lowers the loan and eases the income test, but it does not remove it.
Next Step
Lendmire is a broker that places files with select wholesale programs. 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. Reach the team at 828-256-2183, or request a quote. The cash you need at $5 million is set by loan size first and credit second, so the sooner you test the price against the ladder, the fewer surprises the file holds.
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 is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. Scotsman Guide – Rev Up the Engine for Non-QM Lending
2. NerdWallet – Down Payment on a House
3. CFPB Ability-to-Repay and 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 to Get a Super Jumbo Bank Statement Loan After Changing Fields · Bank Statement Loan vs WVOE Loan for Jumbo Borrowers · Bank Statement Loan vs Assets-Only Mortgage
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.