The Quick Read: It depends on the program, because a $10 million file sits above the standard non-QM grid and is reviewed case by case, but the published ladder across the wholesale network starts at 9 months of PITIA for loans above $1,500,000, adds 2 months per additional financed property up to a 12-month cap, and asks first-time investors for 12 months.
- Income and reserves are tested separately. Statement deposits prove income, and recent asset statements prove reserves.
- The ladder runs 3 months of PITIA for smaller loans, 6 months for mid-sized loans, and 9 months for loans above $1,500,000, through select wholesale programs, subject to full underwriting.
- Each additional financed property adds 2 months, capped at 12. First-time investors carry 12 regardless of size.
- At this size the dollar cushion, not the month count, is usually the real constraint.
Mortgage Reserves, Not Bank Reserve Ratios
Search results for this question tend to drift toward central-banking content. This article is about the cash a borrower keeps after closing, measured in months of housing payment. It is not about the reserve ratios that regulators set for banks.
PITIA means principal, interest, taxes, insurance, and association dues. Reserves are the liquid funds left over after the down payment and closing costs come out. Those funds sit untouched as a cushion for the lender.
Why a $10 Million Loan Is Evaluated Differently
Two wholesale programs cover the size range. The first is a portfolio non-QM bank statement program that carries files to $6,000,000. The second, a bank portfolio program, begins above $4,000,000 and overlaps the portfolio program to $6,000,000. Above $6,000,000 it stands alone.
Leverage steps down as size rises. On a primary residence through the bank portfolio program, the ladder runs 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, on review case by case. Second homes and investment property take their own ladders, so read each figure from the occupancy’s own table.
A $10 million loan also implies a property worth well above $10 million. That means a large down payment, large closing costs, and a large monthly obligation. All three draw on the same pool of liquid cash.
One point about the reserve count itself. The 3/6/9 ladder below is the published portfolio-program ladder. The bank portfolio program sets its own reserve count at this size, and that count is confirmed during the case-by-case review. Treat the 9-to-12-month range as a planning assumption, not a quote.
The Reserve Ladder by Loan Size
For most files placed through the network, reserves step up in three tiers. Add-ons apply for portfolio borrowers and newer investors.
| Situation | Months of PITIA |
|---|---|
| Loan to $500,000 | 3 |
| Loan to $1,500,000 | 6 |
| Loan above $1,500,000 | 9 |
| Each additional financed property | +2 |
| Maximum with add-ons | 12 |
| First-time investor | 12 |
These figures describe typical guidelines through select wholesale programs, subject to full underwriting.
The add-on matters more than most borrowers expect. An investor with three other financed properties adds 6 months to the 9-month base, which lands at 12 months. The cap is reached after only a few properties, so a portfolio borrower should plan liquidity before choosing a program.
How the Cash Requirement Is Built
The months-to-cash conversion is simple, and the totals are large. Follow these steps for any file:
1. Find the monthly PITIA on the new loan, including taxes, insurance, and any dues.
2. Multiply that obligation by the reserve month count that applies to the file.
3. Add the cash needed for the down payment and closing costs.
4. Add any extra months that apply for other financed properties.
5. Compare the total with documented liquid assets that the program accepts.
Funds to close come out first. Only what remains counts as reserves. A borrower with enough for the down payment but nothing left over has not met the test.
At eight-figure loan sizes, the PITIA multiplier is large, so a few extra months move the cash requirement noticeably. That is why liquidity often decides these files before income does.
Some jumbo guidelines compute reserves on the fully amortizing payment instead of the interest-only payment. On the bank portfolio program, the interest-only structure typically tops out at 60% LTV or the band’s ceiling, whichever is lower, on review. If a file uses interest-only, ask which payment the reserve count multiplies.
Two Tests, Two Sets of Documents
A bank statement file is checked twice, using different papers.
The income test uses 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12. Eligible deposits are totaled and an expense ratio is applied to business deposits. The result is divided by the statement months. Transfers from the borrower’s own business into a personal account count at 100% for income, which is a separate matter from whether business funds count as reserves.
The reserve test uses recent asset statements. Deposits in the income statements do not double as reserves, and large balances in those statements do not skip the asset review. Each test must stand on its own.
Bank statement files are a mainstream part of non-QM. Scotsman Guide reported, from Optimal Blue lock data, that bank statement loans were about 37% of non-QM locks in January.
What Counts as Reserves
Cash in checking and savings counts most cleanly. Everything else depends on the program. The table below separates what is firm from what varies.
| Asset | Treatment |
|---|---|
| Checking and savings | Counts, with recent statements |
| Brokerage accounts | Typically counts, lender by lender |
| Retirement accounts | Discounted, 70% in the asset paths (80% at 59.5+) |
| Business funds | Never counted in the asset paths |
| Gifts, unvested stock, crypto | Never counted in the asset paths |
| Cash-out proceeds | Cannot satisfy reserves at super jumbo size |
The cash-out line deserves attention. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, cash-out proceeds cannot satisfy reserves. A borrower who plans to pull equity from one property to cushion a purchase should check this first.
What Raises or Lowers the Number
Several variables move the month count and the cash behind it.
- Loan size. The ladder steps up at $500,000 and $1,500,000, and above $4,000,000 the file is reviewed case by case.
- Number of financed properties. Each one adds 2 months, up to 12.
- Investor experience. First-time investors start at 12.
- Leverage and credit. Lower leverage and stronger credit can improve the file, though the effect is set during review and not by a published discount. Credit floors run 660 on the portfolio program and 680 on the bank portfolio program, and 700 above the super-jumbo line.
- Occupancy. A bank statement loan can cover a primary residence, a second home, or an investment property. Each occupancy takes its own leverage ladder, and at $10 million the investment-property purchase ceiling is 50% to 55% depending on the band, on review.
- Payment structure. Interest-only and fully amortizing structures may change which payment the month count multiplies.
A non-owner-occupied rental purchase is a business-purpose loan, so it is reviewed differently from a standard owner-occupied mortgage.
Reserves are one input among several. The federal rule that governs ability to repay does not set a reserve number. Per the CFPB’s ability-to-repay compliance guide, creditors must make a reasonable, good-faith determination that the borrower can repay. The CFPB’s General QM final rule lists cash reserves alongside credit scores and residual income as factors that may be relevant. Non-QM changes how income is measured. It does not remove the test. The reserve count itself comes from the program.
Where Files Come Up Short
A few patterns repeat. Each has a fix.
- Liquidity is double-counted. The same cash covers both the down payment and the reserves. Fix it by running the five steps above before choosing a price.
- Cash-out is counted as reserves. It cannot be at super jumbo size. Fix it by keeping separate liquid funds.
- Business funds are counted as personal reserves. Business funds do not count in the asset paths. Move funds into a personal account well before applying, or confirm how the program treats them.
- Retirement balances are taken at face value. They are discounted, so model them at 70%.
- Property count is ignored. The add-ons arrive silently and can lift the requirement to 12 months.
- Lender differences are assumed away. Different programs test different assets. Compare programs before committing to one.
Statements must also be consecutive. Transaction histories do not substitute for statements.
Bank Statement or DSCR: Which Number Is Stronger?
A bank statement loan is reviewed on the borrower’s deposits after an expense ratio. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Which product fits depends on which number is stronger for the borrower.
For an investor with lumpy business deposits but a well-rented property, DSCR may carry the cleaner file. For a founder buying a personal residence or a second home, DSCR does not apply, and bank statements are the practical path. Reserve rules differ between the two, and DSCR reserves can sometimes be lighter on certain refinance structures. The complete DSCR loans guide explains how that path works.
Above $4,000,000, cash-out leverage on an investment property is reviewed case by case before submission, and the cash-out proceeds cannot count toward reserves.
A Self-Check Before You Apply
Walk through these questions in order.
1. Is the loan above $4,000,000? If yes, expect a case-by-case review and a program-specific reserve count. 2. How many other properties are financed? Add 2 months each, up to 12. 3. Is this your first investment property? If yes, the count is 12. 4. How much liquid cash is left after the down payment and closing costs? 5. Which of those assets does the program accept, and at what percentage? 6. Is any of that cash from cash-out proceeds on the same transaction? If yes, remove it.
Key Terms Defined
Reserves: Liquid funds a borrower still holds after the down payment and closing costs.
PITIA: Principal, interest, taxes, insurance, and association dues on the new loan.
Funds to close: The down payment plus closing costs, subtracted before reserves are counted.
Super jumbo: A lender-defined tier above the standard jumbo line, where overlays tighten. It starts above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Asset allowance: A path that divides liquid assets by 36, 60, or 84 months to produce qualifying income.
Frequently Asked Questions
Is the reserve requirement the same on a purchase and a cash-out refinance?
Not exactly. The month count follows the same ladder, but cash-out proceeds cannot satisfy reserves at super jumbo size. Cash-out leverage is also lower than purchase leverage. On a primary residence in the $6,000,000 to $10,000,000 band, cash-out tops out at 55% against 60% on a purchase, on review case by case.
Can retirement funds count toward reserves?
Often, at a discount. In the asset-based paths, retirement accounts count at 70%, or 80% at age 59.5 and older. How a particular program treats retirement funds for plain reserves can differ, so confirm the treatment before relying on a balance.
When do I need to document the reserves?
Reserves are verified from recent asset statements submitted with the file, separate from the income statements. The cash should be in place and documented when the file is reviewed. Large or unusual deposits may need sourcing.
Why do two lenders give different reserve answers for the same file?
Each program sets its own ladder, asset rules, and overlays, and the bank portfolio program reviews files above $4,000,000 case by case. A broker that sees many programs can compare them side by side. A single lender’s page shows only one answer.
What if my loan is above the portfolio program ceiling?
The bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder, reviewed case by case before submission. Expect to document liquidity carefully, because the cash cushion at that size is large. Consumer lending is licensed in AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA.
Next Step
Every figure here reflects typical guidelines through select wholesale programs and is subject to full underwriting. Call 828-256-2183 or request a quote through Lendmire’s quote page.
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 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, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
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References
1. Scotsman Guide: Non-QM Momentum Cools While Bank Statement Volumes Strengthen
2. CFPB Ability-to-Repay and Qualified Mortgage 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 Can Founders Borrow With a Bank Statement Loan? · How a Bank Statement Jumbo Loan Works in Santa Fe · How to Get a Super Jumbo Bank Statement Loan Without Moving Your AUM
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.