The Quick Read: To qualify, you document 12 or 24 months of consecutive personal or business bank statements, the lender averages your eligible deposits into monthly income after an expense ratio, and then your credit, debt-to-income ratio, reserves, and the loan-size ladder decide how much leverage you get through select wholesale programs, subject to full underwriting. Above $4,000,000, every file is reviewed case by case before submission.
- Income: qualifying income comes from your deposits after an expense ratio, not from traditional personal-income documentation that shows your write-offs.
- Size: a portfolio non-QM program carries files to $6,000,000, and a bank portfolio program carries twelve-month-statement files to $30,000,000, reviewed case by case above $4,000,000.
- Credit and debt: floors run 660 on the portfolio program, 680 on the bank program and 700 above the super-jumbo line, with debt-to-income up to 50%.
- Reserves: 3, 6 or 9 months by loan size, with more for additional financed properties.
- Indiana: the underwriting mechanics are the same as anywhere else. Lendmire’s consumer mortgage licensing includes Indiana.
Key Terms Defined
Bank statement loan: a mortgage that sets your income from the deposits in your bank accounts instead of from traditional personal-income documentation or pay stubs.
Non-QM: a loan that sits outside the standard “qualified mortgage” box, so the lender builds its own income method.
Expense ratio: the share of business deposits the lender treats as operating costs rather than your income.
LTV (loan-to-value): the loan amount divided by the property’s value or price.
DTI (debt-to-income): your monthly debts, including the new payment, divided by your qualifying monthly income.
Reserves: liquid money left over after closing, counted in months of the new payment.
Seasoning: the waiting period after a credit event, such as a foreclosure, before a lender will consider you again.
Super jumbo: a loan size well above the jumbo line, where leverage drops and overlays (extra lender rules) start.
What Counts as Super Jumbo?
Nobody sets one official line. Lenders and investors draw it themselves, and the extra rules start at different loan sizes depending on the program.
The reference point is the conforming limit. The baseline one-unit limit is $832,750, and the ceiling in high-cost areas is $1,249,125, per Orrick’s summary of the FHFA announcement. Limits vary by county and unit count, as NAHB notes, so check your Indiana county’s figure before you assume you are in jumbo territory.
Across the wholesale network Lendmire shops, the practical lines look like this:
- Above $3,500,000 on a primary residence, super-jumbo overlays apply.
- Above $3,000,000 on a second home or investment property, the same overlays apply.
- Above $4,000,000, everything is reviewed case by case before submission.
Loan size and documentation type are two separate questions. You can document income with bank statements at any size. The size then decides how strict everything else becomes.
How Does a Lender Turn Deposits Into Income?
The lender collects consecutive statements, removes deposits that are not income, applies an expense ratio to business deposits, and divides what is left by the months covered. That monthly figure goes into your debt-to-income test like a salary would.
Here is the sequence, step by step:
1. Choose the statements. 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. Transfers from your own savings and loan proceeds come out. Docsumo’s explainer describes the same exclusions, and large or unusual deposits must be sourced or they are dropped too.
3. Apply the expense ratio. Personal statements usually count most eligible deposits. Business statements take the ratio first.
4. Check ownership. Business statements require at least 25% ownership, and the lender looks at your share of the business.
5. Average and test. The lender divides by the months covered. Your credit, debt-to-income ratio and reserves then get their own review.
The expense ratio is the biggest lever on your income. Published guidelines at several lenders default to a flat 50%. Across Lendmire’s network the options are more granular:
- 20% for a service business with no employees.
- 40% for a business with one to five employees.
- 50% for six or more employees, or any business that sells a product.
- An accountant-provided ratio.
- A profit-and-loss method, capped at 80%.
Two things help you here. Transfers from your own business account into your personal account count at 100%. A CPA letter can document a ratio that fits your actual costs.
Run a modeled picture, using index numbers instead of dollars. Say a service business with three employees shows eligible deposits that average out to 100 units a month after the scrub. The 40% ratio leaves 60 units. A product business with the same deposits lands at 50 units. The same cash flow produces different income depending on how the lender classifies the business.
If your income runs through a partnership, see Lendmire’s piece Does Undistributed K-1 Income Qualify on a Super Jumbo Bank Statement Loan?.
Underwriters also read the pattern, not just the total. Overdrafts, returned items and one-off lump sums raise questions. Commingled accounts, where personal and business activity share one account, force the underwriter to rebuild your income by hand.
Where Do Bank Statement Loans Sit in the Rules?
Bank statement loans are non-QM, and they still carry a repayment test. The lender must make a reasonable, good-faith determination that you can repay, and the federal ability-to-repay rule says your own statement that you can repay does not satisfy it.
That is why the file is documented instead of stated. General qualified-mortgage status is price-based, per the CFPB’s General QM final rule, and bank statement files typically sit outside it. The lender’s own written income policy fills the gap.
On a rental purchase, the business-purpose side is simple. 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.
What Leverage Can You Get at Each Loan Size?
Leverage steps down as the loan grows, through select wholesale programs, subject to full underwriting. On a primary residence purchase, the maximum loan-to-value is highest at the small end of the ladder and lowest at the top. Cash-out ceilings sit below the purchase figure at the same size.
The portfolio non-QM program covers sizes up to $6,000,000. The bank portfolio program, a bank-held jumbo program, begins above $4,000,000, overlaps the first program to $6,000,000 and stands alone above that. Here is the purchase ladder on a primary residence:
| Loan size | Purchase ceiling | Credit for this leverage | Program |
|---|---|---|---|
| $300K–$1M | 90% | 680+ | Portfolio |
| $1M–$1.5M | 85% | 700+ | Portfolio |
| $1.5M–$2M | 85% | 720+ | Portfolio |
| $2M–$3M | 80% | 720+ | Portfolio |
| $3M–$3.5M | 75% | 720+ | Portfolio |
| $3.5M–$4M | 75% | 760+ | Portfolio, overlays |
| $4M–$5M | 65%, on review | 680+ | Bank portfolio |
| $5M–$10M | 60%, on review | 680+ | Bank portfolio |
| $10M–$30M | 55%, on review | 680+ | Bank portfolio |
Read the credit column carefully. It shows the score that band’s top leverage needs. It is not the program floor. A lower score takes a lower-leverage cell in the same band. Notice too that the bank portfolio program takes over at $4,000,000 and its best cell is lower than the band just below it, because it runs its own ladder.
Second homes and investment properties take their own ladders. These are purchase ceilings:
| Loan size | Second home | Investment property |
|---|---|---|
| $300K–$1M | 85% | 85% |
| $1M–$2.5M | 80% | 80% |
| $2.5M–$3M | 75% | 75% |
| $3M–$4M | 65% | 60% |
| $4M–$5M | 65%, on review | 65%, on review |
| $5M–$10M | 55%, on review | 55%, on review |
| $10M–$30M | 50%, on review | 50%, on review |
Rate-and-term refinances follow the purchase figure closely. On a primary residence, the exception is the $3,500,000 to $4,000,000 band, where rate-and-term runs 70% against 75% on a purchase.
Cash-out has its own rules. Proceeds are unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000. The bank program publishes no cap. On a primary residence, cash-out reaches 80% only at loan sizes to $1,500,000. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Interest-only is a structure, not a leverage boost. The portfolio program allows it to 85% LTV with a 700 credit floor on purchases and rate-and-term refinances, on a 40-year term with a ten-year interest-only period. The bank program stops at 60%. 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.
What Do Credit, DTI and Reserves Look Like?
Credit floors are 660 on the portfolio program, 680 on the bank program and 700 above the super-jumbo line. Debt-to-income runs up to 50%. Reserves scale with size: 3 months to $500,000, 6 months to $1,500,000 and 9 months above that.
Each additional financed property adds 2 months of reserves, to a 12-month maximum. First-time investors need 12 months. Above $4,000,000 the reserve requirement is part of the case-by-case review. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Here is the trap. A bank statement loan sets your income number from deposits, but every other liability still counts. Existing mortgages, a business line, a car lease and the new payment all sit in the DTI. A strong property does not offset a heavy personal debt load the way it can on a rental-income program.
What Changes Above the Super Jumbo Line?
Above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, the overlays tighten the file. They apply through select wholesale programs, subject to full underwriting:
- A 700 credit floor.
- A 0x30x24 housing history, meaning no 30-day late payments in the past 24 months.
- 48 months of seasoning after any credit event.
- Eligibility limited to U.S. citizens and permanent residents.
- No non-occupant co-borrowers.
- No rural property, and ten acres maximum.
- Cash-out proceeds cannot be used to satisfy reserves.
At the largest sizes, expect more valuation work as well. A second appraisal or field review is common on many programs when comparable sales are thin. The trigger varies.
Which Properties Fit, and What Does Indiana Change?
Nothing in the bank statement method changes at the Indiana state line. Your deposits, expense ratio, credit and reserves work the same in Indianapolis, South Bend or a lakefront town. What changes is the property.
Condos, condotels and two-to-four unit properties each carry their own, lower ceilings. Second homes must be one-unit properties. Rural property is allowed only on ten acres or less, and never above $3,000,000. Indiana buyers eyeing acreage or an estate should read Lendmire’s piece, Can a Twenty-Acre Property Qualify for a Super Jumbo Bank Statement Loan?, before they choose a property.
A large acreage purchase is often where files stall. The income test passes, then the property falls outside the overlays.
Which Documents Will You Need?
You provide income and asset documents separately. Plan for these:
| Item | What the lender wants |
|---|---|
| Income statements | 12 or 24 consecutive months |
| Ownership proof | Documents showing at least 25% ownership |
| Expense support | CPA or preparer letter, if you use one |
| Large deposits | A written source and paper trail |
| Assets | Recent statements for down payment and reserves |
| Credit event history | Dates and documents, where relevant |
How Should You Prepare Before You Apply?
Start with the deposit trail. Pay business expenses from the business account and move your pay to the personal account as a clear, recurring transfer. Those transfers count at 100% and make the pattern easy to read.
Next, separate your accounts if they are mixed. Source any large deposit in writing now, because it takes far less effort than a letter written mid-underwriting.
Then work on three more items:
- Resolve overdrafts and returned items. Even one can invite a question.
- Ask your CPA whether a letter supporting a lower expense ratio fits your business.
- Hold reserves in liquid accounts you can document. Cash-out proceeds will not count above the overlay line.
Business owners often have returns that show small income because of write-offs and reinvestment. A deposit-based method is reviewed around actual cash flow instead. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Bank Statement, Asset-Based or DSCR: Which Path Fits?
Pick the method that matches what your strongest evidence is. Deposits are one path. Liquid assets are another. Property rent is a third.
| Path | Reviewed on | Best fit |
|---|---|---|
| Bank statements | Your deposits | Strong cash flow, large deposits |
| Asset allowance | Liquid assets | Large liquid balances |
| Assets-only | Assets, no DTI | Liquidity far above the loan |
| DSCR | Property rent | Rental purchases |
The asset allowance divides liquid assets by 36, 60 or 84 months. The 36-month divisor applies when your debt-to-income before the asset income is at or below 60%. The 60-month divisor applies above that. The 84-month divisor applies to standalone use and any loan above $3,500,000. Your final ratio with the asset income counted must still fit the 50% ceiling. It is available on primary and second homes only, to 80% maximum.
Assets-only qualifies with no DTI 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 59.5 and up. Business funds, gifts, trusts other than a revocable living trust, unvested stock and cryptocurrency never count.
For a rental purchase, DSCR is often the cleaner path. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Select lenders in the network also offer programs below 1.00 coverage, with LTV and terms adjusted. A borrower with thin documented income but strong property rent often fits DSCR. A borrower with strong deposits but weak rent against the payment often fits bank statements. For the full picture, read Lendmire’s complete DSCR loans guide.
Frequently Asked Questions
Should I use 12 or 24 months of statements?
Twelve suits income that is rising, since recent months carry more weight. Twenty-four smooths out seasonal swings. The bank portfolio program uses 12. Some brokers run both and pick the stronger result where a program allows a choice, but not every program does.
Can a co-borrower help me qualify on a super jumbo file?
It depends on the size. Below the super-jumbo line, a co-borrower can add income and credit. Above $3,500,000 on a primary residence, or $3,000,000 on a second home or investment property, non-occupant co-borrowers are not allowed.
Can I take cash out on a super jumbo bank statement loan?
Yes, within limits. Cash-out proceeds cannot satisfy reserves above the super-jumbo line. Above $4,000,000, cash-out is reviewed case by case. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Does this work for an investment property?
Yes, through select wholesale programs. Investment property takes its own ladder, shown above, and purchase ceilings sit lower than primary residence at the same size. If the rent covers the payment well, DSCR may be the better fit than deposits.
What if I have a past credit event?
Above the super-jumbo line, lenders want 48 months of seasoning after any credit event and a clean 24-month housing history. Below it, the answer depends on the event, the program and your score.
Ready to Compare Your Options?
If you are financing a high-balance property on business or personal bank statements and want to see how the numbers work, Lendmire can help you compare super jumbo bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals. Lendmire is a broker that shops multiple wholesale programs, and every loan is subject to full underwriting and is not a commitment to lend.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Orrick InfoBytes, FHFA conforming loan limit announcement
2. NAHB, conforming loan limits
3. Docsumo, bank statement income verification
4. CFPB, Regulation Z §1026.43 (ability-to-repay)
5. CFPB, General QM final rule
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: Can a Retiree With No Job Get a Super Jumbo Bank Statement Loan? · Super Jumbo Bank Statement Loan vs Bank ARM After a Company Sale · Physician Loan vs Super Jumbo Bank Statement Loan for a Law Firm Owner
Guides: Super Jumbo Bank Statement Loans in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.