The Quick Read: On a $10M property, neither lender type lends against the full price. Each steps leverage down as loan size grows and reviews the file by hand above $4,000,000. A non-QM program works from a published matrix. A bank portfolio program weighs the whole relationship and sets its own ladder.
- Through select wholesale programs, subject to full underwriting, the leverage ladder on a $10M purchase runs about 60% on a primary residence and 55% on a second home or investment property, all on review.
- A portfolio non-QM program carries loans to $6,000,000. A bank portfolio program carries twelve-month-statement files to $30,000,000.
- Reserves typically run 9 months at this size, and cash-out proceeds cannot count toward them.
- Qualification runs on deposits, assets, or property cash flow instead of traditional personal-income documentation.
- Nothing here is a commitment to lend. Every file is underwritten individually.
Who Each Option Is Really For
A non-QM program fits borrowers who want to know the rules before they apply. Founders, physicians, attorneys, and investors whose traditional personal-income documentation understates cash flow often land here. The lender reads a published matrix: bank deposits, a profit-and-loss statement, assets, or property rent. The answer on size and leverage is knowable early.
A bank portfolio program fits the borrower with a clean, deposit-rich profile who wants the largest possible loan. The bank keeps the loan on its own books, so it sets its own ladder and uses judgment. That judgment can stretch to $30,000,000 on a twelve-month-statement file. It can also say no for reasons a matrix would never show.
The two labels also describe different things. Non-QM describes how the loan is underwritten. Portfolio describes who holds the loan afterward. A loan can be one, both, or neither. BiggerPockets members describe a portfolio loan as one the originating bank keeps instead of selling.
Key Terms Defined
- Non-QM: A mortgage underwritten outside the standard agency-style box, often using bank statements, assets, or rent instead of traditional personal-income documentation.
- Portfolio loan: A loan the originating bank keeps on its own balance sheet rather than selling.
- LTV (loan-to-value): The loan amount divided by the property’s appraised value or price.
- DSCR (debt service coverage ratio): Monthly rent divided by the full monthly housing obligation on an investment property.
- Reserves: Liquid funds, counted in months of payment, that you hold after closing.
- Case-by-case review: Manual underwriting of the whole file before it is submitted, which applies to every loan above $4,000,000.
Side-by-Side
The table shows how the two paths compare on structure. Both columns reflect parameters available through select wholesale programs, subject to full underwriting. Neither is a commitment to lend.
| Factor | Non-QM program | Bank portfolio program |
|---|---|---|
| Review basis | Published matrix: deposits, P&L, assets | Relationship, deposits, DTI, liquidity |
| Documentation | 12 or 24 months of statements | 12 months of statements |
| Loan size | $300,000 to $6,000,000 | Begins above $4M; alone above $6M; to $30M |
| Leverage at $10M | Ladder steps down; on review | Own ladder; on review |
| Credit and reserves | 660 floor; 3/6/9 months by size | 680 floor; 3/6/9 months by size |
| Vesting and property | Matrix-set; confirm entity early | Matrix-set; confirm entity early |
Two rows deserve a closer look. The credit floor for both rises to 700 above the super-jumbo line. Vesting varies by program, so ask early whether a trust or LLC is acceptable, subject to program terms.
What Actually Sets the Loan Amount at This Size
The loan amount is the lower of two numbers: the program’s maximum loan size and the leverage cap for that loan band. Property price is not the limit. Leverage is. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Here is how the ladder reads on a $10M purchase through select wholesale programs. On a primary residence, the ceiling is about 60% LTV on review. On a second home or an investment property, it is about 55% on review. Cash-out ceilings are lower: about 55% on a primary residence and 50% on a second home or investment property, again on review. Since every loan above $4,000,000 is reviewed case by case, treat these as ceilings and not offers. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
The portfolio non-QM program’s $6,000,000 limit matters here. A loan at the primary-residence ceiling on a $10M purchase sits right at that edge. The bank portfolio program’s own ladder takes over from there. It runs 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, each on review above $4,000,000.
For context, the conforming loan limit is $832,750, with a high-cost ceiling of $1,249,125. A $10M property is far above both, so no agency rulebook governs it. Each lender in this space writes its own.
Investors should know one more thing. 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 ability-to-repay standard, laid out in the CFPB compliance guide, is aimed at consumer credit secured by a dwelling. That is why investor files lean on property cash flow and assets rather than the usual consumer test.
The overlays above the super-jumbo line
Above $3,500,000 on a primary residence, and $3,000,000 on a second home or investment property, extra overlays apply through select wholesale programs:
- A 700 credit floor.
- A 0x30x24 housing history.
- 48-month seasoning after any credit event.
- U.S. citizens and permanent residents only.
- No non-occupant co-borrowers.
- No rural property, with a ten-acre maximum.
- Cash-out proceeds cannot satisfy reserves.
These overlays appear in both columns. They do not change from one lender type to the next.
Rent rarely carries a loan this large
On an investment property at this price, rent seldom covers a loan this large at 1.00 coverage. Programs below 1.00 are available through select lenders in the network, but LTV and terms adjust. The coverage test on the actual loan amount often becomes the binding constraint before the leverage ladder does. A reasonable plan tests coverage first, then picks the path.
When a Non-QM Program Is the Better Fit
Choose non-QM when your income lives in deposits and your return does not show it. The portfolio non-QM program reviews your file on 12 or 24 months of personal or business bank statements, subject to lender guidelines. Eligible deposits are divided by the statement months after an expense ratio. The ratio depends on the type of business and the size of its staff, with service businesses that have no employees using a lower ratio than businesses with larger teams or any product business, per lender guidelines. An accountant-provided ratio is another option. A profit-and-loss method is also on the menu, subject to a cap under lender guidelines.
Transfers from your own business into your personal account count in full. That detail matters for owners who pay themselves in lumps. Statements must be consecutive, and transaction histories do not substitute.
Non-QM also fits when assets are the story. An asset allowance divides liquid assets by 36, 60, or 84 months to create qualifying income. It applies to primary and second homes only, at 80% maximum. An assets-only path needs no DTI when U.S. liquid assets equal the loan plus closing costs. Both paths exclude investment property, which routes to deposits or rent instead.
It also suits borrowers who want predictability. DTI goes to 50%. Reserves run 3 months to $500,000, 6 months to $1,500,000, and 9 months above that. Each of these is a published figure, which lets you check your own file before you apply.
Non-QM carries limits at this size. The portfolio non-QM program tops out at $6,000,000, and cash-out is capped at $1,500,000 in hand above 60% LTV. If the loan you want sits above that ceiling, this column runs out of room. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Rent-driven buyers can read Lendmire’s comparison of a DSCR loan versus a portfolio loan on rental properties.
When a Bank Portfolio Program Is the Better Fit
Choose the bank portfolio program when you want the most room and your deposits are clean. It carries twelve-month-statement files to $30,000,000 on its own ladder. That ladder is 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000. Interest-only structures run at 60% LTV or the band’s ceiling, whichever is lower, using 5- and 7-year fixed-period adjustables. A 10-year fixed-period adjustable is fully amortizing. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The bank holds the risk, so it can weigh things a matrix cannot: deposit balances, the relationship, and how the whole picture hangs together. That discretion helps a strong borrower with an unusual file. It also means the answer is less predictable. A decline elsewhere does not guarantee a yes here, and the reverse is also true.
The bank program starts with a 680 credit floor, which rises to 700 above the super-jumbo line. It has no published cash-out cap, which can matter on a refinance. Cash-out still follows the ladder’s cash-out column and the review rule above $4,000,000.
A blunt trade-off applies. Discretion cuts both ways, and this column has less written down in advance. Reserves typically still run to 9 months at this size, and cash-out proceeds cannot count toward them. Ask exactly what the bank counts as qualifying assets before you build the plan around them.
BiggerPockets members also note that portfolio loan can mean a blanket loan across several properties. Ask which meaning your lender uses before you compare.
Lendmire’s piece Refinance Hard Money With a Bank vs a Non-QM Lender covers a related choice.
If the Loan You Want Exceeds What One Program Carries
Plan the equity check before you shop. At about 55% on an investment purchase, you fund the remaining share from your own capital, and the lender reviews its source. Several moves can close a gap:
1. Bring more cash. This is the simplest lever and the one that keeps pricing choices open.
2. Switch occupancy. A primary residence runs about five points higher at the same size, but only if you will live there.
3. Shift programs. A loan too large for the non-QM program’s $6,000,000 ceiling may move to the bank portfolio program’s ladder.
4. Refinance later. A cash-out refinance at or below 60% LTV is unlimited in proceeds on the portfolio program. Above 60%, the $1,500,000 cash-in-hand cap applies. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Here is a short example. Say a founder wants to buy a $10M second home. Her business transfers into her personal account count in full, and she holds strong liquid reserves. Through select wholesale programs, leverage lands around 55% on review. She brings the rest, holds 9 months of reserves, and meets the 700 floor. Whether she lands in the non-QM column or the bank column depends on the loan size and the review. 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. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The Verdict
Pick the non-QM program when you want known rules, 12 or 24 months of statements, and an answer you can test in advance. Pick the bank portfolio program when you want the most room and your deposits tell a clean story. Many borrowers at this size should run both, because the same file can read differently to each one.
Whichever way you go, the same facts hold. A $10M property is financed at a fraction of its price, and review is by hand above $4,000,000. Leverage steps down as loan size rises, and reserves matter more than most borrowers expect. Neither path is cheaper, easier, or safer by default. Each fits a different file.
Lendmire is a broker that shops multiple wholesale programs. It is not the lender. Consumer mortgage lending is licensed in 16 states, so confirm your state first. For a deeper look at how these loans work, read Lendmire’s complete DSCR loans guide.
Frequently Asked Questions
How much can I borrow on a $10M luxury property?
Expect a fraction of the price. Through select wholesale programs, a purchase runs about 60% on a primary residence and 55% on a second home or investment property, all on review. The final amount is the lower of the leverage cap and the program’s maximum loan. Credit, reserves, and the appraisal all feed into it.
Does non-QM mean a lower-quality loan?
No. Non-QM describes the underwriting method, such as deposits or assets instead of traditional income documentation. The lender still verifies credit, assets, and the property. Many strong borrowers use these programs because their conventional personal-income paperwork understates income.
Can I use an LLC or trust on a loan this size?
It depends on the program. Vesting rules differ by lender, so ask early. Investment property is more likely to allow entity vesting than a primary residence. Eligibility is set by each program’s terms.
Can I pull cash out of a $10M property?
Yes, within caps. Cash-out ceilings are lower than purchase ceilings: about 55% on a primary residence and 50% on a second home or investment property, on review. Above 60% LTV, the portfolio program caps cash in hand at $1,500,000. Cash-out proceeds cannot count toward reserves on these files. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Is a portfolio lender easier to get approved by?
Not necessarily. A portfolio lender has discretion, which can help an unusual but strong file. It can also decline for reasons no matrix would predict. Compare the written guidelines on both sides before you assume either one is easier.
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 mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
1. BiggerPockets: Conventional Mortgages vs. Portfolio Loans
2. HousingWire: Conforming Loan Limit
3. CFPB Ability-to-Repay and Qualified Mortgage Compliance Guide
4. BiggerPockets: Portfolio Lender vs. Commercial Lender
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 Finance a Luxury Home With Bank Statements · 40-Year vs. 30-Year Bank Statement Loan for a Luxury STR Operator · High Net Worth Bank Statement Loan vs Portfolio Bank Jumbo Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.