The Quick Read: Qualifying means clearing two separate reviews: the borrower’s twelve or twenty-four months of consecutive deposits, converted into income after an expense ratio, and the building itself, since a penthouse is underwritten as a condo unit, usually a high-balance one, through select wholesale programs subject to full underwriting. There is no separate penthouse program. A strong income file can still stall on the building.
- Income: 12 or 24 consecutive months of personal or business statements. Business accounts need at least 25% ownership, and qualifying income is eligible deposits after an expense ratio.
- Credit and ratios: The portfolio non-QM program sets a 660 credit floor and the bank portfolio program sets 680. Both rise to 700 above the super-jumbo line, and debt-to-income runs up to 50%.
- Leverage: On a primary-residence purchase, ceilings run 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, and 75% to $4,000,000 at the top credit tier. Above $4,000,000 every file is reviewed case by case.
- Building: Non-warrantable condo buildings are typically capped at 80% on a purchase, and condotel penthouses sit lower.
Key Terms Defined
Bank statement loan: a non-QM mortgage that measures income from deposit history instead of traditional personal-income documentation or W-2s.
Expense ratio: the share of business deposits the lender treats as operating cost, so only the remainder counts as income.
Warrantable condo: a building that passes the standard project review on owner-occupancy, reserves, litigation and similar factors.
Non-warrantable condo: a building that fails one or more of those tests and needs a program that reviews it on its own terms.
Super jumbo: a loan large enough to trigger tighter overlays. Those begin above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Condotel: a condo building run partly like a hotel, often with a rental pool or front-desk rental program.
Why Is a Penthouse Reviewed Twice?
A penthouse loan has a borrower track and a property track, and each can fail on its own. The borrower track asks whether your deposits support the payment. The property track asks whether the building and the unit are acceptable collateral.
| Factor | Borrower track | Property track |
|---|---|---|
| Core question | Do deposits support the payment? | Is the collateral acceptable? |
| Main documents | 12 or 24 months of statements | Condo questionnaire, appraisal |
| What can fail it | Non-income deposits, thin history | Investor concentration, litigation |
| Who you control | You | The HOA and the market |
The common mistake is spending months polishing the income file while ignoring the building. High-end towers are often small, and small buildings often have concentrated ownership. The wholesale network Lendmire places files with can adapt to many of those buildings, but the lender needs the facts early.
If your traditional personal-income documentation cleanly shows the income, a conventional jumbo may be the better path. Bank statements make sense when the returns understate what the business really produces.
How Do Deposits Become Qualifying Income?
Underwriters add up eligible deposits, subtract the expense ratio on business accounts, and divide by the number of statement months. Scotsman Guide’s non-QM overview describes the same basic pattern: 12 to 24 months of statements, a standard expense factor, and a profit-and-loss statement or tax-professional letter as a substitute. Through select wholesale programs, the steps look like this.
| Step | What the underwriter does |
|---|---|
| 1. Gather | Takes 12 or 24 consecutive months |
| 2. Scrub | Removes transfers, refunds, loan proceeds, one-offs |
| 3. Apply ratio | Cuts business deposits by the expense ratio |
| 4. Average | Divides by months; prorates for ownership share |
| 5. Test | Divides housing payment plus debts by income |
The expense ratios are fixed in most programs, though the exact figures vary by lender. An accountant-provided ratio can replace the fixed number. A profit-and-loss method is also available and is capped at 80%.
Here is how that plays out. Say a physician-owned practice with three employees shows twelve months of business deposits. The underwriter strips the non-income items first. Then 40 cents of every remaining dollar is treated as expense, and the other 60 cents counts as income. That total is divided by twelve.
Now compare the personal-account route. When the business pays you through transfers into your personal account, those transfers count at 100%. The business already paid its expenses before the money reached you. Many owners who pay themselves steadily find this the stronger route.
Transaction histories do not substitute for statements. The statements must be consecutive, complete and official. If a month is missing, the file waits.
Owners who leave profit inside the entity face a different question. Lendmire’s piece Does Undistributed K-1 Income Qualify on a Super Jumbo Bank Statement Loan? covers that case.
Deposit hygiene for a large-balance file
Large unexplained deposits get questioned on every file. Cash deposits and transfers between your own accounts get questioned too. Keep personal and business money separate for at least the lookback period, and label one-time deposits in a short letter. A clean file is easier to read, and a readable file is easier to place.
What Credit, Reserve and Ratio Requirements Apply?
Most programs in the network want a credit score in the mid-600s or higher at the low end of the size range, and higher as the loan grows. The portfolio non-QM program, which carries files up to $6,000,000, sets a 660 floor. The bank portfolio program, which uses twelve-month statements, begins above $4,000,000 and runs up to $30,000,000. It sets a 680 floor. Both move to 700 above the super-jumbo line. The leverage ladder pushes the working credit tier higher at the upper rungs.
DTI can go up to 50%, subject to lender guidelines. On a penthouse, HOA dues belong in the housing payment, so high dues push DTI up.
Reserves scale with size. Expect 3 months to $500,000, 6 months 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 typically carry 12 months.
Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, extra overlays apply:
- a 700 credit floor and a 0x30x24 housing history;
- 48 months of seasoning after any credit event;
- U.S. citizens and permanent residents only;
- no non-occupant co-borrowers and no rural property;
- cash-out proceeds that cannot satisfy reserves.
How Much Leverage Can a Penthouse Carry?
Leverage steps down as the balance climbs, and penthouses sit near the top of the size range. These are ceilings through select wholesale programs, subject to full underwriting.
| Loan size | Primary-residence purchase ceiling | Review status |
|---|---|---|
| To $1,000,000 | 90% | Standard |
| $1,000,000 to $2,000,000 | 85% | Standard |
| $2,000,000 to $3,000,000 | 80% | Standard |
| $3,000,000 to $4,000,000 | 75% | Top credit tier |
| $4,000,000 to $5,000,000 | 65% | Case by case |
| $5,000,000 to $10,000,000 | 60% | Case by case |
| $10,000,000 to $30,000,000 | 55% | Case by case |
On a second home or an investment property, ceilings run about five points lower at every size. Everything above $4,000,000 is reviewed case by case before submission, so treat those percentages as starting points on review, not promises.
The building adds its own ceiling. On a purchase, warrantable condos run up to 85% and non-warrantable condos up to 80%. Condotels run 75% on a purchase and 65% on a cash-out, and 50% on a cash-out under the bank portfolio program. The lender applies the lower of the property-type ceiling and the size-ladder ceiling.
What Does the Lender Check on the Building and the Unit?
The lender reviews the building as well as your income. A questionnaire goes to the HOA, and the answers decide whether the building is warrantable. Typical triggers for non-warrantable status are high investor concentration, one owner holding a large share of units, thin HOA reserves, pending litigation, unfinished construction, a developer-controlled association, short-term rental allowance, and commercial space in the building. Non-QM is the usual route for these buildings, which is one reason penthouse buyers end up here.
| What is reviewed | Why it matters | What the buyer can do |
|---|---|---|
| Owner-occupancy mix | Investor-heavy towers raise risk | Ask for the questionnaire early |
| HOA reserves and budget | Weak reserves signal special assessments | Request the HOA financials |
| Litigation | Active suits can block a project | Ask the manager directly |
| Rental rules | Hotel-style use changes the category | Confirm the building’s rental policy |
| Unit appraisal | Few penthouse comps exist | Supply recent sales and upgrades |
Penthouses make the appraisal harder. Top-floor units have unusual layouts, terraces and finishes, and few direct comparable sales. A luxury unit may not appraise to the contract price, and then the down payment changes. If the value comes in low, a reconsideration request works best when it rests on documented errors and better comparable sales. Uniqueness alone does not move an appraiser.
Where Does the General Rule Break?
Each of these cases changes the path.
A business younger than 24 months. The twelve-month statement route may fit, and the asset paths can help. The asset allowance divides liquid assets by 36, 60 or 84 months to build income. Eighty-four months applies as a standalone path or on any loan above $3,500,000. The allowance is limited to primary and second homes at 80% maximum. Assets-only qualification needs no DTI when U.S. liquid assets equal the loan amount, closing costs, and sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59.5 and up. Business funds, gifts, most trusts, unvested stock and cryptocurrency never count.
Hybrid income. Some lenders blend a W-2 co-borrower’s pay with a self-employed borrower’s statement income.
Condotel or rental-pool penthouses. These often leave standard bank statement programs entirely or fall to the lower ceilings above. Verify the building’s rental structure before you sign a contract.
Cash-out on an owned penthouse. Proceeds are unlimited at or below 60% leverage. Above 60%, the portfolio program caps cash in hand at $1,500,000. The bank portfolio program publishes no cap. Interest-only structures run up to 85% on purchase and rate-term files under the portfolio program, with a 700 floor. That figure never raises a cash-out ceiling. The bank portfolio program caps interest-only at 60%. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Foreign buyers and non-citizens. Above the super-jumbo line, the network limits files to U.S. citizens and permanent residents. A buyer outside that group needs a different route.
Vesting in an LLC. Whether a bank statement program accepts entity vesting is a guideline question, subject to lender program eligibility. It usually arises only on investment penthouses, not primary residences.
Consumer mortgage lending for primary-residence and second-home penthouses is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. A penthouse elsewhere needs a scope check first.
Bank Statement, DSCR or Something Else?
If the penthouse is a pure rental, a rent-based loan may fit better than a bank statement loan. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and it does not build a personal income number. HOA dues sit inside the payment, so a penthouse with high dues can lose coverage fast. The complete DSCR loans guide covers the mechanics.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The CFPB’s TILA reference treats credit to acquire non-owner-occupied rental property as business-purpose credit. An owner-occupied or second-home penthouse stays on the consumer side, where the lender must verify your ability to repay from reliable records under Regulation Z § 1026.43. Bank statements are that verification, not an exemption from it.
| Path | Reviewed on | Best fit |
|---|---|---|
| Bank statement | Personal or business deposits | Self-employed, returns understate income |
| DSCR | Rent versus the monthly payment | Pure rental penthouse |
| Asset-based | Liquid assets | Wealthy, income hard to document |
| Conventional jumbo | Traditional personal-income documentation and W-2s | Clean returns, standard building |
One judgment call: if rent would not clear coverage on the penthouse, the answer is usually bank statements, not a thinner rent test. If you are reaching for a rental penthouse that fails coverage in every neighborhood you look at, the deal may be the problem, not the loan type. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust.
What Is the Prep Order Before You Apply?
1. Decide the occupancy: primary, second home or investment.
2. Pull 12 or 24 consecutive statements for every account you plan to use.
3. Tag non-income deposits and separate business from personal money.
4. Ask your accountant whether an expense ratio letter would beat the fixed ratio.
5. Request the condo questionnaire and HOA financials as soon as the unit is under contract.
6. Check the building’s rental policy and any pending litigation.
7. Confirm reserves, keeping in mind that cash-out proceeds cannot satisfy them above the super-jumbo line.
8. Order the appraisal with recent penthouse sales and unit upgrades ready.
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.
Why Do Penthouse Files Stall?
- Missing statement months. The fix is to retrieve official statements before applying, since screenshots and spreadsheets do not substitute.
- Large unexplained deposits. Write a short explanation with supporting records.
- An investor-heavy building. Ask for the questionnaire early and compare programs that review non-warrantable buildings.
- A low appraisal. Prepare better comps and document any factual errors.
- Leverage above the ladder. Check the size band before choosing a price, since each rung steps the ceiling down.
- Thin reserves at a high balance. Plan for 9 months, plus 2 per additional financed property.
Frequently Asked Questions
Is a bank statement loan hard to get on a penthouse?
It is harder than on a typical condo because two reviews apply instead of one. The borrower side is usually manageable with clean statements and a steady deposit history. The building side causes more surprises, particularly in small towers with concentrated ownership. Through select wholesale programs, subject to full underwriting, files with strong credit and moderate leverage tend to clear more easily.
Can I buy a penthouse in an LLC on bank statements?
Sometimes, but it depends on the program and the occupancy. Entity vesting is more common on investment penthouses than on primary residences. Eligibility is set by lender program guidelines, so ask before you sign a purchase contract in an entity name.
How does a non-warrantable building change the loan?
It usually lowers the leverage ceiling and narrows the lender list. On a purchase, non-warrantable condos run up to 80% through select wholesale programs, compared with 85% for warrantable ones. The building review also takes more of the file’s attention, so ask for the HOA questionnaire early.
Do seasonal or lumpy deposits hurt?
Not necessarily, because the program averages deposits across the full lookback period. A twenty-four month window smooths out a strong year and a weak one. The underwriter still removes one-off items, so keep records for any large deposit that is genuine business revenue.
When is DSCR a better fit than bank statements for a penthouse?
DSCR fits when the penthouse is a pure rental and its rent comfortably covers the full monthly obligation, HOA dues included. Bank statements fit when you want to qualify on your own or your business’s cash flow, or when rent does not cover the payment. Many investors compare both before choosing.
Next Step
Reach the team at 828-256-2183 or through the quote request page. Programs change, every file is underwritten individually, and 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
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines — which works for self-employed investors, LLC operators, and portfolios above four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Scotsman Guide, Rev Up the Engine for Non-QM Lending
2. CFPB, Truth in Lending Act Reference
3. CFPB, Regulation Z § 1026.43
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 Qualify as a Real Estate Agent for a Super Jumbo Bank Statement Loan · Bank Statement Loan vs Asset Depletion Loan for Physicians · How to Use 40-Year Amortization on a Super Jumbo Bank Statement Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.