The Quick Read: Qualifying for a bank statement loan on a high-rise condo means passing two separate reviews at once: your deposits, credit, assets and reserves must support the loan, and the building’s finances, ownership mix, insurance and rental rules must satisfy the lender’s project guidelines, so a strong income file cannot rescue a building the lender will not accept. Both reviews run in parallel, and either one can stop the file.
- Income path: 12 or 24 consecutive months of personal or business bank statements stand in for traditional personal-income documentation, subject to lender guidelines.
- Leverage: through select wholesale programs, a primary-residence purchase can reach 90% up to $1,000,000, and leverage steps down as the loan grows. Second homes and investment property take their own ladders, which run 0 to 15 points under the primary-residence figure depending on the loan-size band.
- Credit and reserves: a 660 score is the floor on the portfolio program, debt-to-income can run to 50%, and reserves run 3, 6 or 9 months by loan size.
- Building: the tower is judged on its own budget, reserves, litigation, commercial space, owner mix and rental rules.
- Above $4,000,000: every file is reviewed case by case before submission.
Key Terms Defined
Bank statement loan: a mortgage that is reviewed around eligible deposits in your bank accounts instead of on the income shown on your traditional personal-income documentation.
Non-QM: a loan that sits outside the standard “qualified mortgage” box. It is still underwritten, just with different documentation.
Warrantable condo: a building that meets the standard project guidelines most lenders prefer. A non-warrantable condo misses one or more of them. The label belongs to the building, not to you.
Expense ratio: the share of business deposits the lender treats as operating costs rather than income.
Reserves: liquid money left over after closing, counted in months of the new payment.
Condotel: a condo building run partly like a hotel, with rental-desk or nightly-stay operations.
DSCR loan: a loan that qualifies primarily on the property’s rental income covering its payment, subject to lender guidelines.
What Are the Two Reviews You Have to Pass?
The borrower review looks at your deposits, credit, debts and assets. The building review looks at the condo project. They happen side by side, and a strong score on one never offsets a failure on the other.
| Review | What is checked | Typical stopper |
|---|---|---|
| Borrower | Deposits, credit, debts, assets, reserves | Messy or inconsistent deposits |
| Building | Budget, reserves, insurance, litigation, owner mix | Thin reserves or a lawsuit |
| Unit and use | Appraisal, occupancy, rental rules | Rental caps or hotel-style use |
In the wholesale network Lendmire works with, the building review is where many borrowers get caught off guard. Self-employed borrowers expect scrutiny of their statements. Few expect a lender to turn down a tower over its reserve study.
How Do Deposits Become Qualifying Income?
The lender totals your eligible deposits, subtracts an expense ratio when the account is a business account, and divides by the number of statement months. The result is your qualifying monthly income. Through select wholesale programs, the process runs in a few steps.
1. Choose the window. You supply 12 or 24 consecutive months of personal or business statements. The bank program in the network uses 12. Transaction histories printed from a banking portal never substitute for statements.
2. Scrub the deposits. The underwriter removes transfers between your own accounts, loan proceeds and one-time windfalls. Expect a letter of explanation for any large or irregular deposit.
3. Apply the expense ratio. On business statements, programs use fixed ratios that vary with the type and size of the business, with the lowest ratio for a service business with no employees, a middle ratio for one to five employees, and the highest for six or more employees or any product business. An accountant-provided ratio is also an option. A profit-and-loss method, capped at 80%, exists as well.
4. Check ownership. Business statements generally require at least 25% ownership of the business.
5. Average the result. The adjusted total divided by the statement months gives qualifying income.
Here is the math in plain terms. At a 40% expense ratio, 60 cents of every business deposit dollar counts as income. At 20%, 80 cents counts. At 50%, half does. Transfers from your own business into your personal account count in full, which is why many founders qualify on personal statements.
The lender still verifies. In its Ability-to-Repay compliance guide, the CFPB explains that creditors generally rely on records prepared by someone other than the borrower, the creditor or the broker. Bank statements fit that description. A self-prepared spreadsheet does not.
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 documentation rules for an investment condo come from the specific program, so the lender’s sheet decides what you submit.
What Leverage, Credit and Reserves Can You Expect?
Leverage falls as the loan gets larger, and a high-rise condo often sits in the larger bands. The table shows maximum purchase leverage by occupancy, through select wholesale programs and subject to full underwriting. The bands are loan amounts, not purchase prices.
| Loan size | Primary residence | Second home | Investment property |
|---|---|---|---|
| $300K–$1M | 90% | 85% | 85% |
| $1M–$1.5M | 85% | 80% | 80% |
| $1.5M–$2M | 85% | 80% | 80% |
| $2M–$3M | 80% | 75%–80% | 75%–80% |
| $3M–$4M | 75% | 65%–75% | 60%–75% |
Those are ceilings, not promises. The top cell in each band needs a certain score: 680 at the smallest sizes, 700 to 720 through the middle bands, and 720 on a primary residence up to $3,500,000. A lower score takes a lower leverage cell in the same band. Above $3,500,000 on a primary residence, the portfolio program’s super-jumbo overlays apply, including a 700 credit floor. Property type adds its own cap. Warrantable condos reach 85%, non-warrantable condos reach 80%, and condotels reach 75% on a purchase. Condotel cash-out drops to 65%, and to 50% on the bank program. Second homes are one-unit only.
Above $4,000,000, the bank portfolio program takes over on its own ladder: 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000. Every figure at that size is reviewed case by case before submission, so treat none of it as a flat maximum.
Other program basics, through select wholesale programs:
- Credit: 660 floor on the portfolio program, 680 on the bank program, and 700 above the super-jumbo line.
- Debt-to-income: up to 50%.
- Reserves: 3 months to $500,000, 6 months to $1,500,000, and 9 months above that. Add 2 months per additional financed property, up to a 12-month maximum. First-time investors are asked for 12 months.
- Super-jumbo overlays: above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, expect a 700 credit floor and a clean 0x30x24 housing history. Expect 48 months of seasoning after any credit event, and U.S. citizen or permanent resident status. Cash-out proceeds cannot satisfy reserves.
Cash-out is unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000. Interest-only structures reach 85% LTV on purchase and rate-term files on the portfolio program, with a 700 score. That ceiling never raises a cash-out limit. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
What Does the Lender Check in a High-Rise?
The lender reviews the association’s financial health, who owns the units, and how the building is used. The questionnaire your lender sends to the HOA management company collects most of the answers. High-rises add complications that a four-story walk-up does not.
| Building factor | Why it matters | Proof the lender wants |
|---|---|---|
| Budget and reserves | Thin reserves signal special assessments | Budget and reserve study |
| Investor share | A high rental share raises risk | Questionnaire |
| Delinquent dues | Unpaid dues starve the budget | Questionnaire, ledger |
| Litigation | A lawsuit can freeze approval | Litigation disclosure |
| Commercial space | Retail podiums change the project type | Questionnaire |
| Hotel-style use | Condotels are the most restricted | Rental program documents |
| Insurance | Master policy must be adequate | Insurance certificate |
| Deferred repairs | Critical repairs can block approval | Engineer reports, minutes |
Agency rules are a useful contrast, not the rulebook for this loan. Fannie Mae’s recent condo lender letter retired its 50% investor-concentration limit for established projects under Full Review and raised reserve requirements. HousingWire reports that the reserve minimum rises from 10% to 15% of annual budgeted assessment income for Full Review applications. A tower that failed on investor mix before may now pass the agency test and fail on reserves instead. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Non-QM lenders write their own project guidelines. The Michigan Community Association Law Blog notes that individual lenders may keep or set their own investor-concentration rules. So a tower can be acceptable at one lender and declined at another. Lendmire is a broker, so it can shop a building across several programs. If your first lender rejects the tower, the file does not have to die.
Lendmire’s guide How to Qualify for a Bank Statement Loan for a Non-Warrantable Condo covers the case where the building fails the standard project test.
Which Documents Do You Request From the HOA, and When?
Ask for the building documents before you spend money on an appraisal. The lender needs most of them anyway, and a bad answer early saves you the appraisal fee. Management companies are often slow, so start the request on day one of the contract.
1. The condo questionnaire, completed by management.
2. The current annual budget and the latest reserve study.
3. The master insurance certificate.
4. The litigation disclosure and any pending special assessments.
5. A delinquent-dues report and the owner-occupancy and investor mix.
6. Board minutes, which often reveal deferred maintenance.
7. The rental bylaws, including any cap on rented units or waitlist.
Meanwhile, you assemble your own file: statements, proof of business ownership, ID, insurance and proof of funds for the down payment and reserves. Your side is in your control. The building side depends on a management office that has no deadline of its own.
Red Flags to Screen Before You Make an Offer
A few warning signs make a tower hard to finance. Check them before you write an offer.
- Reserves look thin next to the building’s age and the size of its budget.
- The board mentions a special assessment or an unfunded repair project. One investor in a BiggerPockets thread backed out after the HOA disclosed a $40,000-per-unit assessment during the board interview.
- A single owner holds many units, often the developer.
- Ground-floor retail or a podium of commercial space takes up a large share of the building.
- A rental desk, daily-stay program or resort-style operation runs in the building.
- The HOA is in active litigation.
- Rental caps or waitlists limit how many units may be rented, which matters most if you plan to lease the unit.
Rental bylaws are the problem investors tend to discover last. The unit may be reviewable and still be unrentable on your timeline. Read the bylaws before the questionnaire.
Where Do the Standard Rules Bend?
A few situations change the process. Each has a defined path.
Investment use. Investment property takes its own leverage ladder, as the table above shows. The gap to a primary residence runs from nothing at some sizes to 15 points at others, so read the figure from the investment column rather than subtracting from the primary one. Asset allowance works only on primary and second homes, so it does not apply to investment property.
Asset paths. Asset allowance divides your liquid assets by 36 months when debt-to-income is at or below 60%, and by 60 months when it is above 60%. It uses 84 months when it stands alone or when the loan exceeds $3,500,000. The maximum is 80% LTV. Assets-only qualifies with no debt-to-income test when your U.S. liquid assets equal the loan amount plus closing costs plus sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59½ and older. Business funds, gifts, cryptocurrency and unvested stock never count. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
New towers. Under-construction buildings carry presale requirements. The agency rule on 50% presales remains in place, and lenders in the network apply their own project tests.
Condotels. These get the lowest leverage and the narrowest list of eligible lenders.
Mixed income. Some programs let a W-2 co-borrower join a self-employed borrower, depending on the program.
Cash-out. If you are pulling equity from a condo you already own, the cash-out column of the ladder applies, along with the $1,500,000 cash-in-hand cap above 60% LTV on the portfolio program. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Here is a way to think about the choice between a bank statement file and a rental-based one. Say a tower unit rents for well above its full monthly obligation, including dues. A DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, may be simpler. Select lenders in the network also offer programs below 1.00 coverage, with LTV and terms adjusting. Bank statements fit better when the unit’s rent is weak but your business cash flow is strong. 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.
| Situation | Better fit |
|---|---|
| Strong personal or business deposits, weak unit rent | Bank statement loan |
| Rent comfortably covers the full obligation | DSCR loan |
| Large liquid assets, thin deposits, primary or second home | Asset allowance or assets-only |
| Tower declined by one lender | Re-shop the building across programs |
If you are choosing between statement windows, Lendmire’s piece How to Qualify for a 24-Month Bank Statement Loan on a Condo covers the longer option. The complete DSCR loans guide lays out the rental-income alternative in full.
What Mistakes Cost Investors the Most?
Most failed files share a few errors.
- Treating the building as an afterthought and hiring an appraiser before reading the reserve study.
- Mixing personal and business funds so the underwriter cannot tell which deposits are income.
- Moving large sums between accounts during the statement window without a paper trail.
- Assuming a new agency rule makes every tower easy. Rule changes shift responsibility onto lenders and associations, as the Community Associations Institute notes, and lenders can keep stricter limits.
- Ignoring rental bylaws until after contract.
Frequently Asked Questions
Can I get a bank statement loan on a high-rise condo?
Yes, through select wholesale programs, when both you and the building pass review. Your deposits must support the loan, and the tower must meet the lender’s project guidelines. Height by itself is not the issue. Reserves, litigation, commercial space and ownership mix are. Every file is underwritten individually.
Does non-warrantable mean I will not qualify?
No. The label belongs to the building, not you. Through select wholesale programs, non-warrantable condos can reach 80% LTV, versus 85% for warrantable ones, subject to your loan size, occupancy and credit. Leverage ceilings still step down as the loan grows. Every figure here varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
Should I use 12 or 24 months of statements?
Use the window that shows your income most clearly. Twelve months works when income is rising and consistent. Twenty-four months can smooth out an uneven year. The bank program in the network uses 12 months, and the portfolio program accepts either.
Do I need a business account?
No. Personal statements work, and transfers from your own business into your personal account count in full. Business statements need at least 25% ownership and carry an expense ratio. Personal accounts can be simpler when your business pays you cleanly.
Can I rent the unit out?
That depends on the program and on the building. Investment property is available through select wholesale programs, on its own leverage ladder, which sits at or below the primary-residence figure at each size. Many buildings cap rentals or require a waitlist, so confirm the bylaws before contract. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
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. Qualification is subject to lender guidelines, and nothing here is a commitment to lend.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage broker that arranges bank statement and super jumbo financing through select wholesale lenders, with consumer mortgage lending licensed in 16 states. DSCR investor loans, a separate product, qualify primarily on the property’s rental income. All scenarios remain subject to lender review and program guidelines, and nothing here is a commitment to lend. Lendmire has been recognized as a Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB Ability-to-Repay/Qualified Mortgage Small Entity Compliance Guide
2. Fannie Mae condo project review lender letter
3. HousingWire: condo financing overhaul
4. Michigan Community Association Law Blog: Fannie Mae condominium lending guidelines
6. Community Associations Institute: Fannie and Freddie update
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 Non-Warrantable Luxury Condo Loan Triggers Work With Bank Statement Programs · How to Qualify for a Bank Statement Loan as a Contractor or Builder · How to Qualify for a Super Jumbo Bank Statement Loan in Montana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.