The Quick Read: A private bank mortgage fits a practice owner who keeps substantial assets at one institution and can document income through traditional personal-income documentation, while a super jumbo bank statement loan fits an owner whose deposits show more cash flow than the tax return does. Both are underwritten file by file. The right choice depends on how your income reads on paper.
- A private bank loan is a portfolio loan, meaning the bank keeps it and sets its own policy.
- A bank statement loan is reviewed around deposits after an expense ratio, not on net tax-return income.
- Heavy write-offs and depreciation hurt the first path more than the second.
- Leverage on large balances steps down on both paths, and files above $4,000,000 are reviewed case by case.
- Lendmire is a broker, so it compares wholesale programs rather than selling one product.
Side-by-Side
The table below compares the two options on structure. The private bank column reflects published industry norms, and the bank statement column reflects what Lendmire sees across its wholesale network. Every figure is a ceiling or typical range through select wholesale programs, subject to full underwriting.
| Factor | Private Bank Mortgage | Super Jumbo Bank Statement |
|---|---|---|
| Review basis | Whole relationship, assets, net income | Deposits after an expense ratio |
| Documentation | Usually traditional personal-income documentation, P&L, asset proof | 12 or 24 months of statements |
| Property types | Often primary or second home | Primary, second home, investment |
| Entity vesting | Often individual or trust | Personal-income loan; LLC varies |
| Timeline | Varies by bank and relationship | Depends on statement review |
| Reserves | Set by bank house policy | 3, 6 or 9 months by loan size |
Notice what the table leaves out. Pricing is not a row, because pricing depends on the full file and belongs in a direct quote, not in a comparison article.
When a Private Bank Mortgage Is the Better Fit
A private bank mortgage works best when you already have a deep banking relationship and a clean, strong tax return. The bank keeps the loan on its own books. That gives it room to weigh liquid assets, business equity and real estate holdings alongside income. Wealth-management educational material on portfolio lending describes this discretion, though it is commentary, not a neutral standard.
Picture a practice owner with several years of steady, high taxable income and a large share of investable assets at one institution. The tax return already shows the income the lender needs. Here a bank that reads the whole relationship can make sense, and a deposit-based method adds little.
This path also suits an owner who wants a primary residence or second home titled personally or in a trust. Industry norms point that way, though policies differ bank to bank.
The tradeoffs are real:
- Eligibility often hinges on assets held at that institution.
- Income is typically read net of write-offs, as it appears on the return.
- A single bank may cap how much of your portfolio it will finance.
- Terms can depend on keeping deposits in place, which matters if you later move your money.
When a Super Jumbo Bank Statement Loan Is the Better Fit
A bank statement loan is the better fit when your tax return understates your cash flow. Depreciation, owner compensation choices, equipment purchases and staff costs can shrink taxable income well below what actually moves through the practice. A bank statement program reads the deposits instead.
Scotsman Guide describes the standard setup. A self-employed borrower supplies 12 to 24 months of personal or business statements, and the lender applies an expense factor to estimate qualifying income. A profit-and-loss statement from a tax professional can serve as an alternative.
Across our wholesale network, the numbers look like this, through select wholesale programs and subject to full underwriting:
- Window: 12 or 24 consecutive months of statements. The bank portfolio program uses 12.
- Ownership: Business statements need at least 25% ownership.
- Credit: A 660 floor on the portfolio non-QM program, 680 on the bank portfolio 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, with more for each additional financed property.
Loan sizes run from $300,000 to $30,000,000 across two wholesale programs. A portfolio non-QM program carries files to $6,000,000. A bank portfolio program takes over above $4,000,000 and carries twelve-month-statement files to $30,000,000.
The case for this path is strongest for an owner with strong deposits, heavy write-offs, a newer practice, or no wish to move assets to a single bank. The case weakens when deposits are erratic or the expense ratio eats most of the income.
How a Bank Statement for a Practice Owner Turns Deposits Into Income
The method is simple arithmetic with a lot of cleanup attached. The lender totals eligible deposits, subtracts an expense ratio, and divides by the number of statement months. That result is your qualifying monthly income.
The expense ratio depends on the practice. Through select wholesale programs, the fixed ratios are:
- 20% for a service business with no employees.
- 40% for a business with one to five employees.
- 50% for a business with six or more employees, or any product business.
- An accountant-provided ratio, or a profit-and-loss method capped at 80%.
Treat 50% as one common setting, not a rule. Scotsman Guide uses it as an example, and programs set their own. A practice with thin overhead can gain from a CPA-supported ratio, and a high-overhead practice can show its real figure the same way.
Here is how the math reads without dollar figures. Say a solo practitioner with no employees shows twelve months of eligible deposits. At a 20% expense ratio, 80% of those deposits counts as income, spread across twelve months. A practice with one to five employees at 40% keeps 60%. The same deposits can produce very different qualifying income depending on structure and documentation.
Deposit hygiene matters as much as the ratio. Files stall on the same items:
- Counts: Patient and payer receipts that clearly belong to the practice.
- Needs explaining: Large or lumpy deposits, such as a partner buy-in or a practice sale.
- Usually removed: Transfers between your own accounts, loan proceeds, refunds and one-off deposits.
- Counts in full: Transfers from your own business into your personal account, which count at 100% in programs we place.
Statements must be consecutive. A transaction history does not substitute for them.
What Changes as the Balance Climbs
Leverage steps down as the loan grows, and this is where a super jumbo file differs from a standard jumbo. On a primary residence purchase, through select wholesale programs, ceilings typically run 90% to $1,000,000, 85% to $2,000,000 and 80% to $3,000,000. The top credit tier can reach 75% to $4,000,000.
Above $4,000,000, everything is reviewed case by case before submission. On a primary residence purchase, the bank program’s ladder runs 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, always on review. Second homes and investment property take their own ladders, which typically sit a few points below the primary-residence figures depending on the size band.
Cash-out is tighter. The portfolio program caps cash in hand at $1,500,000 above 60% LTV. At or below 60%, proceeds are not capped. Cash-out proceeds cannot be counted toward reserves on files above the super jumbo line. If timing a cash-out matters to you, Lendmire’s piece Private Bank Mortgage vs Super Jumbo Bank Statement on Purchase vs Cash-Out walks through it. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
A private bank has its own policy at these sizes, and it varies widely. Relationship pricing at some banks hinges on minimum deposits or investments, so ask what the bank requires you to hold.
Asset-rich owners have another route. Through select programs, an asset allowance divides liquid assets by 36, 60 or 84 months and treats the result as income, on primary and second homes only. An assets-only path needs liquidity equal to the loan plus closing costs. Business funds never count as assets.
Verification Still Applies
A bank statement loan is not a no-questions loan. Lenders must verify the income or assets they rely on using reasonably reliable third-party records.
For you, this means clean statements. A bank statement loan is reviewed on documented income under the applicable program, subject to lender guidelines. It does not skip underwriting.
When Neither Fits
Two other situations deserve a mention. If your deposits are messy but the property earns strong rent, a DSCR loan tests the property’s rent against its payment instead of your personal income. 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. Lendmire’s complete DSCR loans guide explains how that works.
If your tax return is strong and your balance is modest, a conventional jumbo may be simpler than either option here. Buying the practice building itself is a commercial financing question, not a job for this product.
The Verdict
Choose a private bank mortgage when your tax return shows the income, your assets already sit at one institution, and you value a single relationship. Choose a super jumbo bank statement loan when deposits tell the truer story, you want to keep assets where they are, or you need to qualify across several properties.
This is a close call for some owners. A practice owner with strong net income and large holdings at one bank may find the private bank easier. An owner with heavy write-offs and strong deposits will often find the statement path produces more qualifying income. Compare both against your own documents before choosing.
Tax treatment can depend on how the funds are used and how the property is held, so keep clear records and speak with a qualified tax professional before relying on any deduction.
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. Nothing here is a commitment to lend, and programs change.
Frequently Asked Questions
Can I use my business statements if I own part of the practice?
Usually, if you own at least 25% of the business, through select wholesale programs. Income is prorated to your ownership share. Below that threshold, personal statements are the typical route.
Is a longer or shorter statement window better?
It depends on the shape of your deposits. Twenty-four months can smooth a seasonal or uneven practice, while twelve months can help when the practice has grown recently. The bank portfolio program uses twelve.
Can a CPA letter lower my expense ratio?
Often, yes. Programs in our network accept an accountant-provided ratio in place of the fixed 20%, 40% or 50% settings, and a profit-and-loss method is capped at 80%. Each lender reviews the letter on its own terms.
Does a bank statement loan work for a second home or investment property?
Yes, through select programs, though each occupancy has its own leverage ladder that typically sits below the primary-residence figures. Second homes are one-unit only. Whether a rental can close in an LLC varies by program.
Do big balances change the rules?
Yes. Above $4,000,000, every file is reviewed case by case before submission, and the leverage figures are ceilings on review. Above the super jumbo line, credit floors and seasoning requirements get stricter.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Scotsman Guide, Rev Up the Engine for 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: Should an HNW Executive Use IO on a Super Jumbo Bank Statement Loan? · Full-Doc Jumbo vs Super Jumbo Bank Statement for Commission Earners · SBLOC Cash Offer vs Super Jumbo Bank Statement for a Private-Bank Client
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.