The Quick Read: A bank statement loan is reviewed for a self-employed buyer on 12 or 24 months of deposits instead of traditional personal-income documentation, and the same underwriting applies to a Michigan luxury purchase as to one anywhere else. Underwriting comes from the loan program, not from state rules. Lendmire arranges these files through select wholesale programs, subject to full underwriting, and nothing here is a commitment to lend.
- Qualifying income is eligible deposits divided by the statement months, after an expense ratio on business accounts.
- Loans run from $300,000 to $30,000,000 across two wholesale programs, with leverage stepping down as the balance rises.
- Typical credit floors are 660 on the portfolio program, 680 on the bank portfolio program, and 700 above the super-jumbo line.
- Debt-to-income runs up to 50%, and reserves run 3, 6 or 9 months by loan size.
- Anything above $4,000,000 is reviewed case by case before submission.
Michigan has no special rule that changes any of this. Lendmire is licensed for consumer mortgage lending in Michigan, among 16 states. The rest of this piece walks the file the way it actually moves.
What Is a Luxury Home Bank Statement Loan?
It is a non-QM mortgage for a high-balance home where the borrower proves income with bank deposits. The buyer is usually a business owner, physician, attorney, founder or investor whose traditional personal-income documentation shows less than the cash the business really produces. Write-offs lower taxable income on paper. They also lower what a conventional underwriter will count.
That is the right frame. The lender still verifies what it relies on. The loan is reviewed on documented income under the applicable program, subject to lender guidelines.
The federal ability-to-repay rule still applies to consumer-purpose loans like a primary or second home. Per the CFPB’s small entity compliance guide, a lender must make a good-faith determination of repayment ability and verify what it relies on with reliable third-party records. A non-QM loan gives up the QM presumption. It does not skip the check.
How Does Underwriting Turn Deposits Into Income?
Underwriting scrubs the deposits, applies an expense ratio, divides by the months in the window, and then runs debt-to-income. Each step has a place where a file can lose income, so it pays to know them in order.
1. Pick the statement set. Programs take 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12. Transaction histories never substitute for statements.
2. Scrub the deposits. The underwriter pulls out transfers between the borrower’s own accounts, refunds, gifts, loan proceeds and one-time windfalls. What remains is the eligible deposit stream.
3. Apply the expense ratio. On business statements, the program applies a fixed ratio: 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio can replace the default. A profit-and-loss method, capped at 80%, is another path. Business statements need at least 25% ownership.
4. Divide by the months. Eligible deposits after the ratio, divided by 12 or 24, give monthly qualifying income.
5. Run debt-to-income. The proposed housing cost and other debts are measured against that income, up to 50%. On luxury files this step decides more outcomes than any other.
6. Check credit, reserves and assets. Then comes the appraisal.
Personal statements work differently. The expense ratio is built for business accounts. Transfers from the borrower’s own business into a personal account count in full, at 100%. A borrower who pays themselves regularly from the business can sometimes qualify on the personal account with a stronger result than the business statements would give. Run both before choosing.
What Changes at Luxury Loan Sizes?
Leverage steps down as the balance rises, and the program that carries the file changes. Through select wholesale programs, subject to full underwriting, the primary residence ladder for a purchase runs like this:
| Loan size | Max purchase LTV | Credit for this leverage |
|---|---|---|
| $300K–$1M | 90% | 680+ |
| $1M–$2M | 85% | 700+ |
| $2M–$3M | 80% | 720+ |
| $3M–$3.5M | 75% | 720+ |
| $3.5M–$4M | 75% | 760+ |
| $4M–$5M | 65%, on review | 680+ |
These are ceilings, not promises. The portfolio non-QM program carries files to $6,000,000. The bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder: 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, with interest-only at 60% or the band’s ceiling, whichever is lower. Every loan above $4,000,000 is reviewed case by case before submission, and no loan above $1,000,000 reaches 90%.
The credit number in each row is what that leverage needs. It is not the program floor. A lower score takes a lower leverage cell in the same band. The floors are 660 on the portfolio program, 680 on the bank portfolio program, and 700 above the super-jumbo line.
Second homes and investment properties run their own ladders. Take the figure from that occupancy’s ladder, never by subtracting from the primary figure. Above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, super-jumbo overlays apply: a 700 credit floor, a 0x30x24 housing history, 48-month seasoning on any credit event, U.S. citizens and permanent residents only, no rural property, and ten acres maximum. Cash-out proceeds cannot satisfy reserves.
Reserves are 3 months up to $500,000, 6 months up to $1,500,000 and 9 months above. Add 2 months per additional financed property, to a 12-month maximum. First-time investors need 12 months.
How Does This Compare With the Conforming Limit?
A luxury loan sits well above the agency ceiling, so agency documentation rules do not govern it. The FHFA baseline one-unit conforming limit is $832,750, with a high-cost ceiling of $1,249,125. That ceiling is 150% of the baseline, and limits vary by county and unit count. Check the FHFA county list for the Michigan county in question.
Above that line, each non-QM program sets its own overlays. This is where a broker earns its place. Across the wholesale network, programs differ on expense ratios, account-consistency rules, treatment of business funds and appetite for large balances. The strictest overlays want more reserves and cleaner histories. A few programs are more flexible on messy deposits. One lender’s decline is often another’s approval, which is why the file is shopped before it is submitted.
Where the General Rule Breaks
The standard path has edge cases. These are the ones that move files.
- Declining deposits. Falling deposits are an underwriting red flag. A 24-month average that masks a recent drop may get cut to the lower recent run.
- Pass-through deposits. Money that flows through a business to subcontractors may be excluded or hit with a higher expense ratio.
- Commingled accounts. A personal account mixed with business activity forces the underwriter to sort it out. Clean accounts make the scrub shorter.
- Large one-time deposits. A sale of a business interest or a gift is excluded from income. It may still count as an asset.
- Business funds for the down payment. Business money does not count toward assets or reserves under the asset programs. Move funds to a personal account well ahead of time and document the path.
- Ownership share. Business statements need at least 25% ownership, and income is credited to the borrower’s share.
- Seasonality. A 24-month window smooths a seasonal business. A 12-month window can catch it at a low point.
- Trusts and LLCs. Vesting affects title and the loan. Raise it before the appraisal is ordered, not after.
What If Deposits Don’t Support the Price?
There are other ways to qualify. Two asset paths exist for primary and second homes.
Asset allowance divides liquid assets by 36, 60 or 84 months to add qualifying income. It is supplemental when pre-asset debt-to-income is at or below 60% (36 months) or above 60% (60 months). It is standalone, or required above $3,500,000, at 84 months. The qualifying ratio with that asset income counted must still fit the 50% ceiling. Primary and second homes only, 80% maximum.
Assets-only qualifies with no debt-to-income calculation when U.S. liquid assets 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 over. Business funds, gifts, unvested stock, cryptocurrency and trusts other than a revocable living trust never count.
For a rental, a different route exists. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and does not look at personal income documents. Select lenders in the network offer programs below 1.00 coverage, though leverage and terms adjust. The Lendmire complete DSCR loans guide covers that path. Business-purpose investor loans are reviewed differently from a standard owner-occupied mortgage.
| Path | Reviewed on | Best fit |
|---|---|---|
| Bank statement | Borrower deposits | Primary or second home, self-employed |
| Asset allowance or assets-only | Liquid assets | Asset-rich, low reported income |
| DSCR | Property rent | Rental purchase |
| Conventional jumbo | Traditional personal-income documentation | Documented W-2 or return income |
Cash-Out, Condos and Property Types
Cash-out on the portfolio program is unlimited at or below 60% LTV and capped at $1,500,000 cash in hand above 60%. The bank program publishes no cap. On a primary residence cash-out tops out at 80% in the lowest band and steps down from there. Interest-only on the portfolio program runs to 85% LTV with a 700 floor on purchase and rate-term files. It never raises a cash-out ceiling. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Property type matters too. Warrantable condos run to 85% and non-warrantable to 80%. Condotels are 75% on purchase and 65% on cash-out, and 50% on the bank program. Two to four units run to 85%. Second homes are one unit only. Rural property runs to 80% on ten acres or less and never above $3,000,000. For a lakefront or Northern Michigan second home, that rural line and the one-unit rule are worth checking early.
Key Terms Defined
Expense ratio: the share of business deposits the program treats as costs, not income.
Eligible deposits: statement deposits left after transfers, refunds, gifts and loan proceeds are removed.
Non-QM: a mortgage that falls outside the qualified mortgage definition but still requires a documented repayment determination.
Super-jumbo overlay: an added requirement that applies above a set loan size, such as a 700 credit floor.
Asset allowance: qualifying income built by dividing liquid assets over a set number of months.
What the Decision Looks Like in Practice
Picture a Michigan founder buying a primary residence in the $2,000,000-to-$2,500,000 band. The best purchase cell is 80%, with credit at 720 or better. Business statements with a six-person payroll take the 50% ratio unless an accountant letter documents a lower one. If the borrower pays themselves regularly, the personal-account route may produce more income. The file is run both ways and the stronger version is submitted.
A prep checklist helps:
- Gather 12 or 24 months of consecutive statements, every page.
- Mark and explain transfers and large deposits before the underwriter asks.
- Get an accountant-prepared expense ratio if the default looks heavy.
- Move down-payment and reserve funds into personal accounts and document the trail.
- Decide on occupancy and vesting before the appraisal.
Start six to twelve months ahead if deposits are uneven. Clean statements are a quiet advantage.
Tax treatment varies; consult a qualified professional.
Reach the team at 828-256-2183 or through the quote page.
Frequently Asked Questions
Does Michigan have special rules for bank statement loans?
No. Underwriting comes from the loan program, not the state. Michigan is one of the 16 states where Lendmire does consumer mortgage lending, and the same deposit analysis, expense ratios and leverage ladders apply.
How many months of statements are needed?
The bank portfolio program uses 12 months. Statements must be consecutive, and transaction histories do not substitute.
Can business account funds be used for the down payment?
Not under the asset paths, where business funds never count. Move the money to a personal account early and document where it came from. Programs differ, so confirm before relying on it.
What loan size can a bank statement loan reach?
Through select wholesale programs, $300,000 to $30,000,000, with leverage falling as the balance rises. A portfolio program carries files to $6,000,000 and a bank program carries twelve-month files to $30,000,000. Anything above $4,000,000 is reviewed case by case.
Is a bank statement loan the same as a DSCR loan?
No. A bank statement loan is reviewed for the borrower on deposits. A DSCR loan is reviewed primarily on the property’s rental income covering the payment. A luxury primary or second home usually fits the first. A luxury rental often fits the second.
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
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Small Entity Compliance Guide
2. Orrick InfoBytes, FHFA conforming loan limits
3. Calculated Risk, FHFA baseline conforming limit
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 a Bank Statement Jumbo Loan Works in Carmel · How Much Can Authors Borrow With a Bank Statement Loan? · How a Bank Statement Jumbo Loan Works in Naples
Guides: Super Jumbo Bank Statement Loans in Michigan
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
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.