The Quick Read: It depends on the price, how you will use the condo, your credit tier, and whether the building is warrantable. Through select wholesale programs, a primary-residence buyer of a warrantable condo typically puts down 15% to 20% up to about $3,000,000 and 25% or more once the price passes $3,000,000, subject to full underwriting. Second homes and investment condos take their own ladders. Those ladders match the primary figure in some bands and sit as much as 15 points under it in others. Reserves and closing costs sit on top of the down payment.
- Your down payment is 100% minus the loan-to-value ratio (LTV, the loan as a share of the price) that the program allows at your loan size.
- On a primary residence, the ladder steps down as the loan grows: 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, then 75% at the top credit tier to $4,000,000. A warrantable condo is capped at 85% inside that ladder.
- Above $4,000,000 every file is reviewed case by case before submission.
- A non-warrantable building lowers the ceiling to 80% at most, and a condotel lowers it to 75% on a purchase.
- Your deposits set how large a loan you can carry. A bigger down payment shrinks the loan but does not replace income.
What Actually Sets the Number?
Four things set the down payment on a luxury condo: loan size, occupancy, credit tier, and the building. Price comes first, because every program tightens leverage as the loan grows. Occupancy comes second, because a primary home gets the most leverage in most bands, while second homes and investment condos follow their own ladders.
Credit tier is third. In the ladder across our wholesale network, the top leverage cells ask for a higher score as the loan climbs. The building is last, and it is the factor most buyers miss.
“Luxury” is not a program category. No lender has a luxury-condo box to check. The word usually means a large loan, a high-rise with amenities, and high HOA dues. Lenders see those as loan-size and building-type questions.
Lenders set their own cash requirements. The same condo can carry different cash requirements across programs, which is why a broker who shops several programs matters here.
Key Terms Defined
Down payment: The part of the price you pay in cash, equal to the price minus the loan.
LTV (loan-to-value): The loan amount divided by the purchase price or appraised value, whichever the program uses.
Warrantable condo: A building that meets the eligibility standards that conventional mortgage lenders and investors commonly use to sell loans on the secondary market.
Non-warrantable condo: A building that misses those standards. High investor or single-entity ownership and excessive commercial space are common causes. It is a financing label, not a defect in the building.
Reserves: Liquid funds you keep after closing, counted in months of your housing obligation. They are separate from the down payment.
Condotel: A condo building run partly like a hotel, with rental programs or front-desk operations.
The Down Payment by Price Band
The table shows the best available purchase LTV for a warrantable condo in each band, through select wholesale programs, subject to full underwriting. Your minimum cash down is the portion of the price not covered by that LTV. Credit minimums rise with loan size: roughly 680+ to $1,000,000, 700+ to $1,500,000, 720+ through $3,500,000, and 760+ for the top cell up to $4,000,000.
| Price band | Primary home | Second home | Investment |
|---|---|---|---|
| $300K–$1M | 85% | 85% | 85% |
| $1M–$1.5M | 85% | 80% | 80% |
| $1.5M–$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 |
Three details sit inside that grid. First, the primary-home ladder itself allows 90% up to $1,000,000, but a warrantable condo is capped at 85%, so the table shows the lower figure. Second, the $3M–$4M row is a simplification. Primary-home leverage is 75% from $3,000,000 to $3,500,000, and a 75% purchase between $3,500,000 and $4,000,000 needs a 760+ score. Second homes and investment condos use 65% and 60% in that range on a purchase, with a 760+ score on the second-home cell.
Above $4,000,000 the figures are indicative only, because every file at that size is reviewed case by case. Our network’s bank portfolio program takes twelve-month-statement files from $4,000,000 and above on its own ladder. It runs 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, on review. The portfolio non-QM program carries files to $6,000,000, so the two overlap between $4,000,000 and $6,000,000.
Never read this grid as a promise of 90% on a condo. No condo reaches 90% in our network, and no program offers 90% on any property above $1,000,000.
How the Building Changes the Math
The building can lower your leverage even when the loan size would allow more. Across our network, warrantable condos reach 85% and non-warrantable condos reach 80%. Condotels reach 75% on a purchase. As a rule, the tighter of the property cap and the price-band cap governs.
Picture a $1,200,000 primary-residence condo. The price band allows 85% on a purchase. If the building is non-warrantable, the cap drops to 80%, so the minimum cash down moves from 15% to 20%.
Luxury towers trip the non-warrantable test more often than buyers expect. Common triggers are heavy investor ownership, one owner holding many units, pending litigation, and commercial space on the ground floor. Hotel-style rental programs push a building toward condotel treatment.
You learn the status before you make an offer, not after. Ask for the lender’s condo questionnaire and the HOA financials during the offer stage. The building manager or HOA can complete the questionnaire. If the answers come back badly, you can adjust the offer or the cash you plan to bring.
HOA dues matter for a second reason. They count in your monthly obligation, which feeds the debt-to-income ratio (DTI, your monthly debts as a share of qualifying income). Our programs allow DTI up to 50%. High dues on a luxury unit can cut the loan you qualify for even when the LTV ceiling is fine.
Appraisal risk is the last building-level issue. If a new or pre-construction unit appraises below the contract price, the loan is sized on the lower value. That means you bring the gap in cash.
Primary, Second Home, or Investment?
Your occupancy plan changes the maximum leverage at many loan sizes. A primary home gets the top of the ladder in most bands. A second home must be a one-unit property, which covers most condos. An investment condo is a business-purpose purchase.
Here is the regulatory piece, kept short. 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 federal Regulation Z business-purpose exemption and its regulatory text turn on the purpose of the loan, not on what you call the property. Your attorney should confirm how that applies to your purchase.
Pause on a luxury investment condo before assuming a bank statement loan is the right path. For rentals, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Luxury HOA dues weigh on that coverage ratio, so the rent has to carry them.
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. Many luxury buildings restrict rentals in their HOA documents, and that settles the question before any loan does.
What Does Cash to Close Really Total?
Your real requirement is the down payment plus closing costs, prepaid items, and reserves. Buyers who plan only for the down payment come up short.
Run the numbers on a $2,200,000 primary-residence condo in a warrantable building, using these modeled assumptions. The price band allows 80% on a purchase with a 720+ score, so the minimum cash down is 20%. Reserves at that loan size run 9 months, because anything above $1,500,000 sits in the top reserve tier.
Compare a $3,200,000 second-home condo. The purchase ceiling is 65% with a 760+ score, so the cash down is 35%. This file also falls under the super-jumbo overlays, which apply above $3,000,000 on a second home or investment property. They include a 700 credit floor, a clean 0x30x24 housing history, and 48-month seasoning on any credit event. They also require U.S. citizens or permanent residents and bar non-occupant co-borrowers. Cash-out proceeds cannot satisfy reserves.
Reserve tiers across the network scale with the loan: 3 months to $500,000, 6 months to $1,500,000, and 9 months above. Each additional financed property adds 2 months, to a 12-month maximum. First-time investors carry 12 months.
Budget also for special assessments and any HOA capital contribution at closing. Those vary by building, so ask for them in writing before you commit.
Where the Money Can Come From
Large down payment funds need a paper trail. Expect to document the source of any deposit that is large or unexplained. Lenders in our network want consecutive statements, not transaction histories.
The asset-based paths have their own rules. Retirement accounts count at 70% of their value, or 80% once you reach 59.5. Business funds, gifts, most trusts (a revocable living trust is the exception), unvested stock, and cryptocurrency never count toward those asset calculations.
If your cash is tied up in a business account, plan around that early. Lendmire’s piece How to Source a Down Payment on a Second-Home Bank Statement Loan walks through documentation by fund type.
How Your Deposits Set the Price Ceiling
The down payment is only one gate. Your deposits decide how large a loan you can carry. This is the part buyers underestimate.
Across our programs, we read 12 or 24 months of personal or business statements. The bank portfolio program uses 12. Business statements need at least 25% ownership. Qualifying income is eligible deposits divided by the statement months, after an expense ratio. The fixed ratios depend on the type of business and how many employees it has, with the lowest ratio for a service business with no employees and higher ratios for businesses with more employees or any product business. An accountant-provided ratio is another option, and so is a profit-and-loss method. Transfers from your own business into your personal account count in full.
Credit has a floor too: 660 on the portfolio program, 680 on the bank portfolio program, and 700 above the super-jumbo line. A lower score takes a lower leverage cell inside the same band.
A larger down payment lowers the loan, and a lower loan needs less income to qualify. It helps at the margin. It cannot rescue a file whose deposits are too thin.
There are alternatives when deposits understate your wealth. An asset allowance divides your liquid assets by 36, 60, or 84 months to supplement income. It covers primary and second homes only, to a maximum 80% LTV. An assets-only path needs no DTI when U.S. liquid assets equal the loan plus closing costs plus sixty months of any net loss on other residential property. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
| Path | Reviewed on | Best fit |
|---|---|---|
| Bank statement | Deposits after expense ratio | Owners with strong cash flow |
| Asset allowance or assets-only | Liquid assets | Asset-rich, income-light |
| DSCR | Rent covering the payment | Rental condos |
Should You Put More Down?
Put more down when it solves a specific problem, and keep liquidity when it does not. A larger down payment can bring a file inside a lower-LTV band, shrink the income needed, or offset a non-warrantable building. It also ties up cash that reserves and the next deal might need.
This is a real tradeoff, and the right answer depends on your goals. A buyer with a thin reserve picture should lean toward keeping cash. A buyer whose deposits barely support the loan should lean toward more down.
There is one price-line trick worth knowing. Dropping the price a few percent below a band boundary can raise the allowed LTV. A condo at $3,050,000 sits in a tighter band than one at $2,950,000, so the cash required can jump by more than the price difference suggests.
Pre-Offer Checklist
- Confirm the HOA allows your intended use, whether primary, second home, or rental.
- Request the condo questionnaire and HOA financials before you offer.
- Identify any non-warrantable triggers: investor concentration, litigation, commercial space, hotel features.
- Match your price to the leverage band, then check the credit tier that band requires.
- Add reserves, closing costs, and any HOA capital contribution to the down payment.
- Gather 12 or 24 consecutive months of statements, with every page.
- Document large deposits and the source of your down payment funds.
- If the condo is a rental, ask for a DSCR comparison on the same property.
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.
Lendmire arranges these loans as a broker through select wholesale programs, and consumer mortgage lending is available in AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. Everything here is subject to full underwriting and is not a commitment to lend. For the investor side of the same question, start with the complete DSCR loans guide.
Frequently Asked Questions
Can I buy a luxury condo with less than 20% down?
Yes, on a primary residence up to about $2,000,000. Through select wholesale programs, a warrantable condo reaches 85% LTV in that range, which means 15% down. At $2,000,000 to $3,000,000 the ceiling is 80%, so 20% down is the floor. Second homes and investment condos need more down in some bands, and a non-warrantable building caps leverage at 80%. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Does a non-warrantable building raise my down payment?
Yes, it can. Non-warrantable condos are capped at 80% across our network, while warrantable condos reach 85%. On a $1,200,000 primary-residence condo, that moves the minimum from 15% to 20%. Condotels cap at 75% on a purchase. The lender’s condo questionnaire settles the status, so get it before you offer.
Do reserves count toward my down payment?
No. Reserves are separate cash you hold after closing. They run 3 months to $500,000, 6 months to $1,500,000, and 9 months above, with 2 more months per additional financed property to a 12-month maximum. Cash-out proceeds cannot satisfy reserves on super-jumbo files.
What happens above $4,000,000?
Every file is reviewed case by case before submission. The bank portfolio program runs 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, on review. Treat those as ceilings, not offers. Credit, the property, and your assets or deposits drive the final structure.
Should I use a bank statement loan or a DSCR loan for a rental condo?
Compare both on the same property. A bank statement loan reads your deposits. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. High HOA dues can hold back DSCR coverage on a luxury unit, so run each path before choosing.
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 is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. CFPB — Regulation Z, Section 1026.3
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: Is a Super Jumbo Bank Statement Loan Available in California? · How Non-Warrantable Luxury Condo Loan Triggers Work With Bank Statement Programs · How a Bank Statement Loan Works for a Waterfront Estate
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.