The Quick Read: It depends on how you are paid. Owners of a fund management company or GP entity can usually use bank statements, and the loan size is capped by two things: qualifying income after an expense ratio, and the program’s size ladder. A salaried PM or analyst paid through payroll is usually not the target borrower.
- Through select wholesale programs, subject to full underwriting, loan amounts run from $300,000 to $30,000,000, with files above $4,000,000 reviewed case by case before submission.
- Income is 12 or 24 months of eligible deposits, reduced by an expense ratio, then divided by the months in the window.
- Debt-to-income can run up to 50%, with a credit floor of 680 on the portfolio program and 700 above the super-jumbo line.
- Maximum leverage on a primary residence steps down as the loan grows.
- Reserves run 3, 6 or 9 months depending on loan size.
There is no hedge-fund-specific cap. The number comes from your documented deposits and the property, not from your job title. Programs change, every file is underwritten individually, and none of this is a commitment to lend.
Who Actually Fits the Program
A bank statement loan is built for self-employed borrowers. The standard setup is a borrower with no W-2 who supplies 12 to 24 months of personal or business statements, and the lender applies an expense factor to business deposits, as Scotsman Guide describes. That setup maps cleanly onto some fund professionals and badly onto others.
| Role | Likely fit | Main catch |
|---|---|---|
| Founder or partner of the management company | Strong | Ownership share and expense ratio set the income |
| GP entity principal with entity deposits | Strong | Deposits must be eligible and consecutive |
| W-2 PM paid salary plus bonus | Weak | Payroll income is not self-employed income |
| Analyst or associate | Weak | Other paths fit better |
| Fund employee with entity income | Mixed | Depends on ownership and where pay lands |
If you are in the weak rows, other documentation paths exist: full documentation, an asset-based path, or qualification on the property’s own cash flow. More on those below.
How Lenders Turn Deposits Into Income
Deposits become income through a fixed sequence. Across the wholesale network, most programs follow the same steps.
1. Choose the statement window. Twelve or 24 consecutive months, personal or business. The bank portfolio program uses 12. Transaction histories do not substitute for statements.
2. Remove ineligible deposits. Transfers between your own accounts, loan proceeds and refunds come out. Large or unexplained deposits need support. Lenders verify the income and assets they rely on with reasonably reliable third-party records, which is the same standard laid out in the federal consumer-finance regulator’s small entity compliance guide.
3. Apply the expense ratio. For business statements the fixed ratios depend on the type and size of the business, with a service business with no employees at the low end and product businesses or larger staffs at the high end. An accountant-provided ratio is the alternative. A profit-and-loss method is also available, capped at 80%.
4. Apply your ownership share. Business statements need at least 25% ownership, and deposits are prorated to your share.
5. Divide by the months in the window. The result is monthly qualifying income.
6. Run debt-to-income, credit, reserves and leverage against the program grid.
One point matters for fund principals. Transfers from your own business into your personal account count at 100%. If your management company pays you through distributions into a personal account, those transfers are not discounted again by the expense ratio.
Here is the math on a modeled assumption, not a market fact. Say a principal owns 100% of a management company with six or more employees and shows 12 months of eligible business deposits. The 50% ratio cuts those deposits in half, and the remainder divides by 12. The same deposits run through a personal account as owner transfers would count in full. That gap is the reason where your pay lands matters as much as how much you earn.
How Much Can You Borrow?
The borrowable amount is the lower of what your income supports and what the program’s ladder allows. Income sets the payment you can carry inside a 50% debt-to-income limit. The ladder sets size and leverage.
Through select wholesale programs, subject to full underwriting, here is how leverage on a primary residence steps down as size climbs:
| Loan size | Purchase LTV (primary residence) | Credit |
|---|---|---|
| $300K to $1M | Up to 90% | 680+ |
| $1M to $2M | Up to 85% | 700 to 720+ |
| $2M to $3M | Up to 80% | 720+ |
| $3M to $4M | Up to 75% | 720+ |
| $4M to $5M | 65%, on review | 680+ |
| $5M to $6M | 60%, on review | 680+ |
Second homes and investment property run about five points lower at most sizes. A purchase of a second home from $300,000 to $1,000,000 tops out at 85%, for example, and cash-out ceilings sit below purchase ceilings at every size.
Two programs sit behind these numbers. The portfolio non-QM bank-statement program carries files to $6,000,000. A bank portfolio jumbo program carries twelve-month-statement files to $30,000,000 on its own ladder: 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000. That ladder begins above $4,000,000 and overlaps the portfolio program to $6,000,000. Every loan above $4,000,000 is reviewed case by case before submission, so treat any figure at that size as a starting point for the conversation, not a quote.
Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, super-jumbo overlays apply. Those include a 700 credit floor, a 0x30x24 housing history, 48 months of seasoning after a credit event, and no rural property. Cash-out proceeds cannot satisfy reserves.
Reserves run 3 months to $500,000, 6 months to $1,500,000 and 9 months above that, plus 2 months for each additional financed property up to a 12-month maximum. First-time investors carry 12 months.
For deeper background, Lendmire’s complete guide to bank statement loans for hedge fund professionals covers the program from the profession’s side.
Where Fund Compensation Complicates the File
Fund pay does not look like a restaurant owner’s deposits. Four features come up repeatedly on files like this.
Lumpy deposits. Carry and performance fees arrive in large, irregular amounts. Averaged over 12 or 24 months, a single big payout can swing the monthly number in either direction. A longer window smooths it out, and a 24-month window is often the better choice when one year was unusually strong or weak. Expect to explain large deposits in writing.
Carry is not guaranteed income. Carried interest is a share of profits paid to the manager after a return threshold is met, as AngelList explains. Underwriters may treat large, irregular carry as non-recurring. How a given program treats it varies, so confirm against that program’s guidelines before you plan around it.
K-1 timing. Hedge funds issue Schedule K-1s, and they often arrive after April 15, which pushes borrowers onto extension, according to LBMC. A tax-return-based file can stall on that lag. Deposit-based documentation reads your actual account activity, so it does not wait on the K-1.
Trading gains and passive returns. Money earned from investing your own capital is not the same as business income from running the management company. Whether those deposits count depends on the program and how the account is titled. Flag them up front.
An operator observation: the files that stall are rarely about size. They stall on entity documents, proof of ownership percentage, and deposits that cannot be tied to a source. Pull the operating agreement and an ownership letter before the statements.
One more note on the tax side. Tax treatment varies by situation; consult a qualified professional before relying on any deduction.
When the Property Does the Work Instead
Some fund professionals should skip income documentation entirely. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. For an investment property where rent comfortably covers the full monthly obligation, personal income, K-1 lag and carry volatility mostly stop being the central question.
Programs below 1.00 coverage are available through select lenders in the network, though leverage and terms adjust. Lendmire’s complete DSCR loans guide walks through how coverage is calculated.
| Path | Underwrites | Best fit for a fund professional |
|---|---|---|
| Bank statement | Your deposits | Owner with strong, steady deposits |
| Full-doc jumbo | Traditional personal-income documentation and W-2s | Salaried with clean, stable pay |
| Asset-based | Liquid assets | Large liquidity, uneven income |
| DSCR | The property’s rent | Rental purchase with solid coverage |
The practical rule is simple. If the property’s rent covers its own payment, DSCR sidesteps the income question. If coverage is thin but personal deposits are strong and steady, a bank statement loan can fill the gap. One caution: bank statement loans underwrite you, so every new mortgage adds to your debt-to-income. That limits how far you can scale a portfolio.
Asset Paths for Uneven Pay
If deposits are too lumpy, two asset routes exist through select wholesale programs, on primary and second homes only.
Asset allowance divides liquid assets by 36 months when debt-to-income is at or below 60%, by 60 months when it is above 60%, or by 84 months for a standalone file or any loan above $3,500,000. Maximum leverage is 80%.
Assets-only carries no debt-to-income test. U.S. liquid assets must equal the loan amount plus closing costs plus 60 months of any net loss on other residential property.
Retirement accounts count at 70%, or 80% at age 59.5 and older. Business funds, gifts, most trusts, unvested stock and cryptocurrency never count. For fund professionals holding concentrated, locked-up or unvested positions, that last list is where files shrink. Liquid and vested is the test.
Documents to Gather First
- 12 or 24 consecutive months of statements for the accounts used
- Operating agreement or entity documents proving at least 25% ownership
- An accountant letter if you want an expense ratio other than the fixed ones
- Written explanations for any large or non-routine deposit
- Proof of liquid assets for reserves
- Your own account of how fund compensation is paid and where it lands
Clean documentation does not guarantee approval, but it leaves fewer preventable gaps for the lender to review.
When Not to Use It
Skip a bank statement loan when you are paid entirely through payroll, when deposits have been falling, or when a full-doc jumbo would document the same income with less friction. Falling deposits are an underwriting concern on any deposit-based file, and a property with strong rent coverage may serve you better through DSCR. A sole proprietor weighing similar choices can compare notes in Lendmire’s piece How Much a Sole Proprietor Can Borrow on a Jumbo Bank Statement Loan.
Consumer mortgage lending through Lendmire is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA.
If you are financing a high-balance property on business or personal bank statements and want to see how the numbers work, Lendmire can help you compare super jumbo bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals.
Frequently Asked Questions
Can a hedge fund PM get a bank statement loan?
A W-2 PM paid through payroll is usually not the intended borrower, because the program is built for self-employed income. A PM who also owns part of a management company, with at least 25% ownership, may be able to use business statements. Otherwise full documentation or an asset-based path tends to fit better.
Do bonuses and carry count as income?
They count only to the extent they show up as eligible deposits or documented income under the program. Large, irregular carry may be treated as non-recurring or averaged across the window. Confirm treatment against the specific program before you build a purchase around it.
Do I need to own part of the firm?
For business statements, yes. Through select wholesale programs the minimum is 25% ownership, and deposits are prorated to your share. Without it, personal statements or another path may apply.
How many months of statements are needed?
Twelve or 24 consecutive months, personal or business. The bank portfolio program uses 12. Statements must be consecutive, and transaction histories do not substitute.
Is there a loan-size ceiling?
Yes. Through select wholesale programs, loans run from $300,000 to $30,000,000, with the portfolio program carrying files to $6,000,000 and the bank program above that. Anything above $4,000,000 is reviewed case by case before submission, and leverage falls as size rises.
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. CFPB ATR/QM Small Entity Compliance Guide
4. LBMC: Tax Implications of a Hedge Fund Investment
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 on Sales or Commission · Bank Statement Loan vs Asset Depletion Loan for Musicians · How to Use a CPA Letter for a Bank Statement Jumbo Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.