The Quick Read: It depends on loan size and how you will use the home, but on a primary-residence purchase the minimum down payment typically steps up as the loan amount grows, with a lower minimum on smaller loans for borrowers with stronger credit and a higher minimum on loans in the multi-million-dollar range, through select wholesale programs, subject to full underwriting, while second homes and investment properties typically require more.
- Waterfront is not a program category. It moves your number indirectly, through loan size, occupancy, the appraisal and insurance.
- Primary-residence purchase ceilings step down as the loan grows: 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, 75% to $4,000,000, and case-by-case review above $4,000,000.
- Deposits prove you can carry the payment. They do not count as equity, so the down payment is a separate test.
- Cash to close is the down payment plus closing costs plus post-closing reserves of roughly 3 to 9 months, depending on loan size.
What Actually Sets the Number
Four things set the number: occupancy, loan size, credit score and the appraised value. Estates tend to land in the highest loan-size bands, where lenders tighten leverage. That is why the waterfront label feels like it changes the answer, even though no program has a waterfront rule.
Across the wholesale network Lendmire works with, the pattern is consistent. Each program publishes a matrix, and your file lands in one cell of it. The cell depends on what you are buying, how you will use it and how large the loan is.
| Factor | How it moves the down payment |
|---|---|
| Occupancy | Second home and investment run lower LTV than primary |
| Loan size | Larger loans carry lower maximum LTV |
| Credit score | Higher tiers unlock the top of each band |
| Appraised value | LTV uses the lower of price or appraisal |
| Property type | Rural, acreage and condo limits can cut leverage |
Lendmire is a broker, not a lender. It compares multiple wholesale programs for the same file, because one program’s cell is often more generous than another’s at a given size. Every figure below is a ceiling available through select wholesale programs, subject to full underwriting. This is not a commitment to lend.
The Leverage Ladder at Estate Prices
At estate prices, the ceiling on a purchase falls from 90% to 65% across the size bands, so the down payment climbs from 10% to 35% or more. The down payment is simply 100% minus the ceiling. These are purchase ceilings at the best credit tier for each cell.
| Loan size | Primary home | Second home | Investment |
|---|---|---|---|
| $300K–$1M | 90% | 85% | 85% |
| $1M–$2M | 85% | 80% | 80% |
| $2M–$2.5M | 80% | 80% | 80% |
| $2.5M–$3M | 80% | 75% | 75% |
| $3M–$4M | 75% | 65% | 60% |
| $4M–$5M | 65%, on review | 65%, on review | 65%, on review |
Credit tiers matter at each step. On a primary residence, the top of each band typically calls for 680+ credit to $1,000,000, 700+ to $1,500,000, 720+ to $3,500,000 and 760+ from $3,500,000 to $4,000,000. Second homes and investment properties at the same sizes often ask for 700 to 760 credit.
Every loan above $4,000,000 is reviewed case by case before submission. Treat the 65% figure in the last row as a starting point for that review. Above $5,000,000, the ladder runs lower, with 60% on a primary-residence purchase and 55% on a second home or investment purchase, again on review.
Two portfolio programs do the work here. A portfolio non-QM bank-statement program carries files to $6,000,000. A separate bank portfolio program takes twelve-month-statement files up to $30,000,000 on its own ladder, which begins above $4,000,000 and overlaps the first program up to $6,000,000.
Four Estate Scenarios
Scenarios show how this works in practice. All of them run on percentages, because the dollar check scales directly with price.
Scenario one: a primary-residence estate in the $2,000,000–$3,000,000 loan band. The ceiling is 80% on a purchase, so the planned down payment is at least 20%. The top of that band typically calls for 720+ credit. A borrower with a 700 score may land in a lower cell, which means a bigger check.
Scenario two: the same estate as a second home. The ceiling falls to 75% in the upper half of the band, so the down payment is at least 25%. Second homes are single-unit only, so a guest house with a separate unit can complicate the file.
Scenario three: a primary residence with a loan between $3,500,000 and $4,000,000. The ceiling is 75% on a purchase at the top credit tier, so the down payment is at least 25%. The super jumbo overlays apply at this size. These include a 700 credit floor, a 0x30x24 housing history and 48-month seasoning on any credit event. Borrowers must be U.S. citizens or permanent residents, with no non-occupant co-borrowers.
Scenario four: a loan above $5,000,000. A primary-residence purchase typically runs at 60% on review, so the down payment is around 40%. A second home or investment purchase typically runs at 55% on review, so the down payment is around 45%. Credit of 680+ is typical here, though overlays still apply.
Why Waterfront Changes the Equation
Waterfront changes the equation through the appraisal, the flood exposure and the land itself. None of these appears as a line item in a program matrix. They show up in how an underwriter treats your file.
The appraisal. Unique waterfront estates often have few true comparable sales. Seawalls, docks, boathouses and shoreline condition all add judgment calls for the appraiser. If the appraisal supports a lower value than your contract price, the loan is sized to the lower number.
Run the math on a shortfall. Say you plan 20% down at an 80% ceiling, and the appraisal lands 5% under the contract price. The lender sizes the loan at 80% of the lower value, which is 76% of your contract price. Your cash requirement rises from 20% to 24% of the price, with no change to the program. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Flood exposure. The National Association of Realtors notes that flood insurance is federally required for a federally related mortgage in a special flood hazard area, which carries a 1% annual flood chance. Non-QM programs set their own guidelines, but many ask for coverage in a flood zone as a matter of policy. A high-value estate may also need coverage beyond the standard federal limits. Higher insurance cost adds to the monthly obligation, which feeds the debt-to-income test, typically capped at 50%.
Acreage and rural classification. Waterfront estates often sit on large lots. Through select programs, rural property typically runs to 80% leverage on ten acres or less, and never above $3,000,000. Above the super jumbo line (a loan above $3,500,000 on a primary home, or above $3,000,000 on a second home or investment), rural property is excluded and acreage tops out at ten acres.
Plan on a few lender-side requests for an estate:
- A recent survey and any seawall or dock documentation.
- A flood determination and an insurance quote before you commit.
- Comparable sales that support the price, or a plan for a cash shortfall.
How the Income Side Works
Income and equity are separate tests. A bank statement file is reviewed on documented income under the applicable program, subject to lender guidelines. That income comes from 12 or 24 consecutive months of personal or business deposits. The bank portfolio program uses 12 months.
For business statements, the borrower typically needs at least 25% ownership. Qualifying income is eligible deposits divided by the statement months, after an expense ratio. Fixed ratios are set by business type and size, with lower ratios for a service business with no employees and higher ratios for businesses with more employees or any product business. An accountant-provided ratio or a profit-and-loss method capped at 80% are also options. Transfers from your own business into a personal account count at 100%.
The CFPB’s ability-to-repay compliance guide explains why statement files get a careful read. It says a lender must verify income from reliable records, and that when account inflows are used as income, the lender must confirm they are the borrower’s own. Statements must be consecutive, and transaction histories never substitute.
Strong deposits do not replace equity. They lower the risk that you cannot carry the payment. They do not reduce the percentage you must put down.
Where the Down Payment Money Can Come From
Typical sources include savings, brokerage liquidation and net proceeds from a sale. Large or unexplained deposits get documented. Business funds can work, but pulling cash out of the business can shrink the deposits that qualify you. Plan the sequence with your accountant before you move money.
Lendmire’s piece How to Source a Down Payment on a Second-Home Bank Statement Loan covers the documentation steps in detail. Here the principle is simple: money you move should have a paper trail from its origin to the closing account.
Reserves are a second cash test. Typical reserves are 3 months to $500,000, 6 months to $1,500,000 and 9 months above that, plus 2 months for each additional financed property, to a 12-month maximum. First-time investors typically carry 12 months. Cash-out proceeds cannot satisfy reserves above the super jumbo line.
Many estate buyers get this part wrong. They plan the down payment and closing costs, and forget reserves. At estate size, nine months of reserves is a meaningful amount of cash that has to sit untouched after closing.
Can a Bigger Down Payment Help You Qualify?
Yes, in two ways. The first is debt-to-income. A smaller loan means a smaller monthly obligation, which helps when insurance on a waterfront property pushes your ratio toward the 50% ceiling.
The second is the band edge. Leverage ceilings depend on the loan amount, not the price. If extra cash brings your loan under a certain size threshold, the ceiling on a primary-residence purchase can move up a tier.
Consider the other direction too. A lower down payment is sometimes the better call. If your cash earns more elsewhere, or you want to keep a deep liquidity cushion, a higher loan amount with a longer reserve runway can make sense. The flip point is whether the extra equity buys you a better cell or just a smaller loan.
When Assets Replace Deposits
Some estate buyers have large liquid portfolios and irregular deposits. Two asset-based paths exist through select wholesale programs, both on primary and second homes only.
- Asset allowance: Liquid assets divided by 36, 60 or 84 months supplement your income, with 84 months used for standalone files or any loan above $3,500,000. Maximum leverage is 80%.
- Assets-only: No debt-to-income test applies, but U.S. liquid assets must 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 above. Business funds, gifts, trusts other than a revocable living trust, unvested stock and cryptocurrency never count. Assets used for the down payment still have to cover reserves.
If the Estate Will Be Rented
Occupancy changes the ladder. An investment-use estate sits in the investment column, which runs about five points lower than a primary home at several sizes and lower still in the $3,000,000 to $4,000,000 band.
A bank statement loan on a rental still counts your income and debt-to-income. If the home’s own rent can cover the payment, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide explains when that path fits. For a high-priced estate, rent rarely covers the full carry, so the bank statement route is often the more realistic choice.
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.
Credit also plays a role. Lendmire’s piece Does a 700 Score Unlock Lower Down Payment on a Bank Statement Loan? shows how credit tiers shift the cell you land in.
Some investors fund an estate down payment by pulling equity from an existing rental. That strategy can work, but cash-out proceeds cannot count toward reserves above the super jumbo line, and the cash-out ceiling sits below the purchase ceiling. Plan both numbers before you commit to a contract.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the lower of the purchase price or appraised value. The down payment is the part LTV leaves out.
Super jumbo: A loan above $3,500,000 on a primary residence, or above $3,000,000 on a second home or investment property. Extra overlays apply at that size.
Expense ratio: The share of business deposits treated as costs, deducted before deposits count as income.
Reserves: Liquid funds that remain after closing, measured in months of the housing obligation.
Appraised value: The appraiser’s estimate of market value. When it comes in below the price, the loan is sized to the lower number.
Your Pre-Offer Checklist
Before you write an offer on a waterfront estate, run through these steps:
1. Confirm whether the home will be a primary residence, a second home or a rental, because the ladder column depends on it. 2. Check your loan size against the band edges above, especially at $3,000,000, $3,500,000 and $4,000,000. 3. Get a flood determination and an insurance quote, including any coverage beyond standard limits. 4. Choose the income path: 12 or 24 months of statements, a profit-and-loss method, or an asset path. 5. Total your cash need: down payment, closing costs and months of reserves. 6. Build a cushion for an appraisal shortfall, since thin waterfront comps make one more likely.
This article is general education, not legal or tax advice, and tax treatment varies, so consult a qualified attorney or CPA about your own situation.
Frequently Asked Questions
Is the minimum different because the home is waterfront?
No program has a waterfront rule. The same matrix applies, and your loan size, occupancy and credit pick the cell. The practical difference is that waterfront estates tend to be large loans with tougher appraisals and higher insurance costs, which usually push the cash requirement up.
What happens if the appraisal comes in low?
The loan is sized to the lower of price or appraised value, so you cover the gap in cash on top of your planned down payment. At an 80% ceiling, an appraisal 5% under the contract price lifts your cash requirement from 20% to 24% of the price. Build a cushion into your plan, because unique waterfront properties often have thin comparable sales.
Can I qualify on deposits without traditional personal-income documentation?
Yes, through bank statement programs, subject to lender guidelines. Qualifying income comes from 12 or 24 months of eligible deposits after an expense ratio, and transfers from your own business into a personal account count at 100%. The statements prove income, but the down payment still has to come from documented funds.
How many months of reserves should I expect?
Reserves typically run 3 months for loans up to $500,000, 6 months up to $1,500,000 and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum, and first-time investors typically carry 12. At estate size, plan for the 9-month tier.
Does a flood zone change the down payment?
Not directly. A special flood hazard area means flood insurance is typically required, and that cost raises your monthly obligation and debt-to-income. A larger down payment can offset some of that by shrinking the loan.
If you are financing a high-balance waterfront 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. Lendmire’s 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.
Shoreline estates reward the buyer who plans for the appraisal gap and the insurance bill before the offer, not after it.
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. National Association of Realtors — flood zone tips
2. 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: Bank Statement Loan vs Assets-Only Mortgage · How to Get a Super Jumbo Bank Statement Loan After Changing Fields · Bank Statement Loan vs WVOE Loan for Jumbo Borrowers
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.