The Quick Read: Loan size has no private-equity-specific cap. For a self-employed borrower or business owner with steady deposits, it comes from qualifying income built out of 12 or 24 months of deposits, then tested against debts, credit, reserves and leverage through select wholesale programs, subject to full underwriting. Loan amounts run from $300,000 to $30,000,000 across two programs, and everything above $4,000,000 is reviewed case by case before submission. Lumpy bonus and carry deposits are usually the weakest part of a private equity file.
- Size: $300,000 to $30,000,000 across two wholesale programs, with no single ceiling for the whole menu.
- Leverage: on a primary-residence purchase, 90% to $1,000,000, stepping down to 75% by $3,500,000, then case by case above $4,000,000.
- Income: 12 or 24 months of deposits, divided by the statement months, after an expense ratio on business accounts.
- Credit and cash: a 660 credit floor on the portfolio program, debt-to-income up to 50%, and 3, 6 or 9 months of reserves by loan size.
- Rentals: a pure rental purchase often fits a property-based loan better than a personal-income loan.
What Sets the Borrowing Limit?
No private equity multiplier exists. A lender never says “PE professionals can borrow X times income.” The limit comes from a formula, and the formula treats a fund partner the same as a founder or a physician with similar deposits.
Here is the formula in plain steps. The lender strips out deposits that are not real income. It averages what remains over the statement window. On business accounts, it applies an expense ratio. Then it tests the result against the proposed housing payment and your other debts, and it checks credit, reserves and the property.
Bank statements replace traditional personal-income documentation. They do not replace underwriting. Scotsman Guide describes the standard scenario: a self-employed borrower with no W-2 supplies 12 to 24 months of personal or business statements, and the lender calculates income from them.
In Lendmire’s wholesale network, the expense ratios on business accounts are usually fixed, and the specific percentages vary by lender and program, so confirm them against the guidelines of the program in question. A service business with no employees carries the lowest fixed ratio, a business with a small staff carries a higher one, and a larger staff or any product business carries the highest. An accountant-provided ratio or a profit-and-loss method can replace the fixed ratio, subject to the program’s cap. Transfers from your own business into your personal account are generally counted in full.
How the size bands work
Two wholesale programs cover the range. A portfolio non-QM program carries files to $6,000,000. A bank portfolio jumbo program takes twelve-month-statement files to $30,000,000 on its own ladder. That ladder begins above $4,000,000, overlaps the first program to $6,000,000, and stands alone beyond that.
Leverage shrinks as the loan grows. These are ceilings through select wholesale programs, subject to full underwriting, and credit minimums rise from 680 at the low end to 720 or higher in the middle bands.
| Loan size | Primary residence, purchase | Investment property, purchase |
|---|---|---|
| $300K–$1M | 90% | 85% |
| $1M–$2M | 85% | 80% |
| $2M–$2.5M | 80% | 80% |
| $2.5M–$3M | 80% | 75% |
| $3M–$4M | 75% | 60% |
Second homes generally run about five points below the primary-residence column. Above $4,000,000, a primary-residence purchase is reviewed case by case, at 65% from $4,000,000 to $5,000,000, 60% from $5,000,000 to $10,000,000 and 55% beyond that. Nobody gets 90% above $1,000,000.
Cash-out sits lower. On a primary residence, cash-out tops out at 80% through $1,500,000 and steps down from there. The portfolio program caps cash-in-hand at $1,500,000 above 60% LTV. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Above $3,500,000 on a primary residence, or $3,000,000 on a second home or investment property, tighter overlays apply. They include a 700 credit floor, a 0x30x24 housing history, and 48 months of seasoning after any credit event. They also require U.S. citizen or permanent resident status, and they exclude rural property. Exact terms depend on lender and investor guidelines, credit profile, reserves, and property review.
Reserves scale with size. Expect 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 need 12 months.
Why Does PE Pay Fit Deposit Averaging So Poorly?
Because the biggest checks arrive rarely and late. Carta lists four pieces of PE pay: base salary, an annual bonus, carried interest and co-investment. Carry is not guaranteed. It pays only after the fund returns capital to its limited partners, who often must first receive a preferred return.
Averaging flattens spikes by design. A salary shows up as an even stream. A year-end bonus lands in one or two months. Carry can arrive years after the work was done, and it may never arrive at all.
That is why the deposit average, not your headline compensation, sets the number. A senior professional with a seven-figure year on paper can show a modest monthly average if most of the pay was deferred or paid as fund allocations rather than cash into your accounts.
Which Deposits Count (and Which Get Stripped)?
Recurring, documented deposits from your own business or work count. One-time items and money moving between your own accounts do not. Treatment of carry and fund distributions varies by lender, so a file with that income is best reviewed against specific programs before you commit to a path.
| Deposit type | Typical treatment |
|---|---|
| Management-company draws moved to personal | Counts at 100% |
| Business-account revenue | Counts after the expense ratio |
| Salary or bonus into personal account | Counts if the file fits the program |
| Carry or fund distributions | Reviewed lender by lender; may be non-recurring |
| Brokerage-to-checking transfers | Stripped out |
| Capital-call refunds, loan proceeds | Stripped out |
Expect to explain any large or unusual deposit in writing. Statements must be complete and consecutive, every page. Transaction histories never substitute for statements.
What the K-1 does and does not prove
A K-1 is a tax allocation, not cash in your account. The IRS instructions for the Schedule K-1 describe it as reporting a partner’s share of partnership items. AngelList’s explainer notes that carry often appears on capital gain lines, while management fees show up as guaranteed payments.
On a bank-statement file, the K-1 mostly proves your ownership percentage. Business statements need at least 25% ownership. The deposits that actually hit your account drive qualifying income.
Does a 12-Month or 24-Month Window Borrow More?
It depends on which year was stronger. A longer window smooths lumpy income, and a shorter one rewards a strong recent year.
Run the numbers this way. Say your latest twelve months of eligible deposits were double the prior twelve. The 24-month average comes out at 75% of the 12-month figure. You would see a smaller qualifying income with the longer window, so the 12-month option wins.
Flip it. Say the latest year was a weak one for bonus timing and the prior year was strong. Now the 24-month window lifts your average. A broker who sees many programs can price both paths and show you which window supports more.
A business-account file adds one more step. Take the averaged deposits, apply the expense ratio, then prorate to your ownership share. A 40% ratio leaves 60% of eligible deposits as income before proration.
Who Fits a Bank Statement Loan, and Who Doesn’t?
Bank-statement programs are built for self-employed and business-owner borrowers. A general partner, principal or founder paid through a management company or fund vehicle is the most natural profile. Deposits land in accounts you control, and your ownership is documented.
A salaried associate or vice president paid mainly through W-2 compensation is a different question. Much of that income may be better documented with pay records than with deposits. Whether bank statements work for a given file is a program-eligibility call, so confirm it against current guidelines before building a plan around it.
Two other paths exist when deposits understate you. Asset allowance is reviewed on liquid assets divided by 36, 60 or 84 months, on primary and second homes only, to 80% maximum. Assets-only qualifies with no debt-to-income test when U.S. liquid assets cover the loan amount plus closing costs plus sixty months of any net loss on other residential property.
Retirement accounts count at 70% (80% at age 59.5 and up). Business funds, gifts, unvested stock and cryptocurrency never count, so unrealized carry is not an asset in this math.
Credit and debt still matter. The portfolio program sets a 660 floor, the bank program 680, and 700 above the super-jumbo line. Debt-to-income can run to 50%. Each new mortgage you add stacks onto your personal debts, so a long chain of homes can hit the debt ceiling before it hits a size cap.
Bank Statement or DSCR for a PE Professional’s Rentals?
For a pure rental purchase, the property usually carries the file better than your paycheck. A DSCR loan, short for debt service coverage ratio, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your bonus timing and carry schedule stop mattering to the size of the loan.
| Factor | Bank statement loan | DSCR loan |
|---|---|---|
| What is tested | You and your deposits | The rental property |
| Property use | Home, second home, some investment | Investment only |
| Personal debt ratio | Counts, up to 50% | Not the deciding test |
| Many properties | Each loan adds to your debts | Each property judged on its own |
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, as the CFPB’s exempt-transactions rule lays out, with the creditor deciding case by case. Your primary home and second home stay on the personal-income side.
So the split is simple. Use bank statements for the home you live in or the vacation home you keep. Use a property-based loan to scale rentals. Lendmire’s complete DSCR loans guide walks through how that second path works.
A practitioner view on mixing both
Files for high earners often carry both loan types. The home is financed on deposits, the rentals on property income. The mistake is forcing every purchase through one document path because it worked once. Deposits that qualify a primary residence comfortably can strain the debt ratio when you stack three more bank-statement mortgages on top.
Common Snags in a PE File
Most problems come from the statements, not the deal. Watch for these.
- Commingled accounts. Fund money, personal money and business money in one account makes screening deposits painful.
- Unexplained spikes. A large deposit without a paper trail may be dropped from income altogether.
- Transfers counted twice. Moving money between your own brokerage and checking accounts can look like income and gets stripped.
- Declining deposits. A falling trend over the window weakens the average and the lender’s comfort.
- Missing pages. Every page of every statement is required, and gaps stall the review.
Keep proof of ownership ready. Possibly add an accountant letter or a profit-and-loss statement if you want to support a lower expense ratio than the fixed options. 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.
Bank-statement programs are a growing slice of the market. Scotsman Guide reports that non-QM loans were about 5% of originations in the latest data, up from 3% in 2020.
Key Terms Defined
Non-QM loan: a mortgage that falls outside the standard rules for qualified mortgages, which allows alternative income documentation such as bank statements.
Expense ratio: the share of business-account deposits a lender subtracts for operating costs before counting the rest as income.
Carried interest (carry): a fund manager’s share of profit, paid only after investors get their capital back and any preferred return.
K-1: a tax form reporting a partner’s share of a partnership’s items, which is an allocation rather than cash received.
DSCR: debt service coverage ratio, the rental income divided by the monthly debt payment for an investment property.
Reserves: liquid cash left over after closing, counted in months of housing payments.
Frequently Asked Questions
Can carried interest count as income on a bank statement loan?
Only through deposits that actually land in your accounts, and only if the program accepts them. Carry is irregular and long-dated, so lenders may treat it as non-recurring or screen it out. Unrealized or unvested carry never counts as an asset. How a given program handles it varies, which is why comparing several wholesale programs matters.
How many months of statements do I need?
Twelve or twenty-four consecutive months of personal or business statements. The bank portfolio program uses twelve. Pick the window that makes your best case, because a strong recent year favors twelve and a strong prior year can favor twenty-four.
Do I need to own 100% of the business?
No. Business statements need at least 25% ownership, and income is prorated to your share. Personal-account statements are another route, and transfers from your own business into a personal account count at 100%.
Does a bank statement loan work for a second home or an investment property?
Yes, at lower leverage than a primary residence, generally about five points lower at every size. Second homes are limited to one unit. For rentals you plan to scale, a property-based loan is often the better fit, since each bank-statement mortgage adds to your personal debt ratio.
Where does Lendmire arrange consumer bank statement loans?
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. If you live elsewhere, a scope check comes before any program discussion.
Next Step
For a closer look at the profession, see Lendmire’s piece Bank Statement Loans For Private Equity Professionals: Complete Guide, and for sizing basics, its explainer How Much a Sole Proprietor Can Borrow on a Jumbo Bank Statement Loan. 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 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Scotsman Guide, Rev Up the Engine for Non-QM Lending
2. Carta, Private Equity Compensation
3. IRS, Partner’s Instructions for Schedule K-1 (Form 1065)
4. AngelList, Schedule K-1 for VCs
5. CFPB, Regulation Z § 1026.3 Exempt Transactions
6. scotsmanguide.com: Which Groups Are Driving Non QM Lending
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 Asset Depletion Loan for Musicians · How to Use a CPA Letter for a Bank Statement Jumbo Loan · Private Bank Mortgage vs Non-QM Super Jumbo Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.