The Quick Read: What you can borrow on a $10M rental is the lower of two ceilings: the leverage cap for that loan size, which tops out near 60% of value on review, and the loan the rent can carry at coverage of 1.00 or better, subject to underwriting. Your personal income after the exit is not the test. Liquidity, credit and the property’s rent are.
- Leverage cap: on a purchase above $4,000,000, leverage is reviewed case by case, with 60% as the ceiling on review.
- Rent coverage: at this size, taxes and insurance are large, so rent often binds before leverage does.
- Equity in: expect roughly 40% of the price in cash, plus closing costs and reserves.
- Cash-out limits: cash-out refinancing stops above a $3,000,000 loan amount, so a refinance on a $10M property can only pull equity out if the new loan stays within the cash-out bands.
- Cash trail: your down payment and reserves must trace back to documented, liquid sale proceeds.
Key Terms Defined
Post-exit founder: someone who has sold or otherwise cashed out of a company and now holds liquid proceeds but no regular paycheck.
DSCR (debt service coverage ratio): the property’s monthly rent divided by its monthly debt service, which means principal, interest, taxes, insurance and any HOA dues. A ratio of 1.00 means the rent exactly covers the payment.
LTV (loan-to-value): the loan amount as a percentage of the property’s price or appraised value.
Reserves: liquid cash you keep after closing, measured in months of the property’s payment.
Interest-only (IO): a stretch of years when you pay interest but no principal. Lenders then size reserves and coverage on the interest, taxes and insurance alone.
Seasoning: how long funds sit in your account before a lender treats them as yours.
Super jumbo: a trade label for very large loans. It has no official definition.
DSCR Calculator
Run the numbers in your market
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Why Does a Sale Change Your File?
Because the paycheck stops and the cash arrives all at once. A conventional file wants steady, recent income. A founder who just sold has none of that and a great deal of cash. Those two facts pull in opposite directions.
DSCR financing handles this well. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your traditional personal-income documentation and your last paystub are not the centerpiece. But the file still has to answer three questions:
- Does the rent carry the loan?
- Is your credit clean enough for this loan size?
- Can you prove the cash is liquid, yours and documented back to its source?
That third question is where founders get surprised. Paper equity, unvested shares and unexercised options do not count toward cash to close or reserves. Only money that is sold, liquid and in your own account does. A large headline payout can still produce a thin file if much of it sits in an escrow holdback, an earnout, a seller note or a rollover stake.
Does “Luxury” or “Jumbo” Cap the Loan?
No. The conforming loan limit is a different product’s ceiling. The Federal Housing Finance Agency set the one-unit baseline at $832,750 for most of the country, with a high-cost ceiling of $1,249,125. Orrick’s summary confirms the same figures.
Those limits describe what the large government-sponsored buyers can purchase. They do not govern DSCR loans placed with investor lenders. So a $10M rental is not “too big” in any rulebook sense. It is simply deep into the size ladder, where each lender sets its own caps.
The Leverage Ladder
Leverage steps down as the loan grows. Across the wholesale network Lendmire places files with, the ladder runs from $150,000 to $10,000,000. Lendmire’s standard DSCR program stops at $3,000,000, and a separate portfolio-investor program carries qualified investors past it. Every figure below is a ceiling through select wholesale programs, subject to underwriting, for investment property with coverage of 1.00 or higher.
| Loan size | Purchase / rate-term LTV |
|---|---|
| $150K–$1M | 80% |
| $1M–$1.5M | 75% |
| $1.5M–$2M | 75% |
| $2M–$3M | 75% |
| $3M–$4M | 65% |
| $4M–$6M | 60% on review |
| $6M–$10M | 60% on review |
Credit works alongside the ladder. The top cell at $150K–$1M needs 660 or better. The top cells from $1M to $3M need 700 or better and then 720 or better, and the top cells above $3M need 700 or better. The program floor is 660 on loans to $3,000,000. Above $3,000,000 the super-jumbo overlay lifts the floor to 700. A lower score inside the same band takes a lower leverage cell.
Above $4,000,000, every request is reviewed case by case before submission. It is purchase or rate-and-term only, with no cash-out. Cash-out refinancing stops above a $3,000,000 loan amount.
Which Ceiling Binds First?
Run the checks in this order. The lowest ceiling wins.
1. Rent coverage. Divide the property’s monthly rent by its full monthly debt service. Rent comes from a lease, a market-rent appraisal schedule, or documented short-term-rental history, depending on the program. At $10M, the tax and insurance lines are large. The rent has to be very high to reach 1.00. For a luxury property that rents like a luxury property, that is a real test.
2. Leverage cap. Apply the ladder. At this price, expect 60% on review.
3. Credit and event seasoning. Above $3,000,000, expect 700 or better, a clean housing history (0x30x24) and 48 months of seasoning after any bankruptcy or foreclosure event.
4. Reserves. Typically 6 months of the subject property’s payment (interest, taxes and insurance only, if the loan is interest-only). First-time investors need 12. Cash-out proceeds never count toward reserves on the largest files.
5. Appraisals. Two are required above $2,000,000, subject to underwriting.
Most buyers at this level assume leverage is the constraint. In practice, rent is. A property priced for a lifestyle buyer often rents for far less than the price implies. If the rent cannot clear coverage at modest leverage, the loan shrinks until it does. The cure for that is more cash in, not more paperwork.
Worked Example: A $10M Purchase
Run the numbers on a founder buying a $10M, single-family luxury rental through an LLC. These are modeled assumptions, not market data.
Leverage: the request falls in the top tier of the ladder. The lender reviews it case by case, with 60% on review as the ceiling. That implies roughly 40% of the price in cash, before closing costs.
Coverage: assume the appraisal’s rent schedule and the property’s taxes and insurance produce coverage of about 1.10x. That clears the 1.00 benchmark at full leverage, and the 60% cap governs.
Interest-only: a 120-month interest-only period on a 30- or 40-year term is available up to 75% LTV through select programs. The 60% cap is lower, so the cap governs. Interest-only helps the coverage math here. It lowers the monthly obligation the rent has to beat. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Reserves: 6 months of the subject property’s interest, taxes and insurance, or 12 months for a first-time investor. These come from liquid funds that are not also earmarked for the down payment.
Now change one input. Say coverage comes back near 0.90x. Coverage below 1.00 is a real path through select programs, but only up to a $2,000,000 loan, at reduced leverage. LTV and terms adjust, subject to underwriting. At $10M, a sub-1.00 file does not stay at the top of the ladder. The realistic fixes are a larger down payment, a different property, or a negotiated price. Run coverage before you negotiate price, not after.
Where the General Rule Breaks
Short-term rentals. A luxury Airbnb-style property cannot use the short-term-rental path at this size. That path stops at $2,000,000 in loan amount, requires coverage of 1.00 or higher, counts 80% of gross income, and is for experienced investors only. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
No-ratio files. They offer a way around the rent test, but only through select wholesale programs, subject to underwriting, and they also stop at $2,000,000. They do not reach a $10M purchase.
Cash-out and refinance. The $3,000,000 cash-out limit applies to the loan amount, not the property’s value. A founder who already owns a $10M property can still explore a cash-out loan, but only if the new loan stays at or below $3,000,000, which is far below the property’s value. Within that, unlimited proceeds are available at or below 60% LTV, and above 60% LTV proceeds are capped at $1,500,000, subject to underwriting. Rate-and-term refinancing follows the same 60% on-review ceiling as a purchase at the top of the ladder. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Citizenship and property type. Above $3,000,000, the overlay is for citizens and permanent residents. It excludes rural property and caps acreage at ten acres. Below that size, the rules differ.
Occupancy. 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. That treatment follows the loan’s purpose. Federal rulemaking on ability-to-repay says investment-purpose loans are considered business-purpose loans. A “luxury rental” you also plan to use as your own getaway may not be treated that way. If personal use is part of the plan, say so up front and talk through it with your broker.
LLCs. Vesting title in an LLC is welcome, subject to program terms, with no layered entities. But a person signs a personal guaranty, so the loan is typically full recourse. An LLC does not wall off your balance sheet from this debt.
DSCR Path or Asset-Based Path?
Founders often mix up two different products. Asset-depletion lending turns liquid assets into imputed monthly income, usually to qualify for a home you will live in. The DSCR path ignores your personal income and sizes the loan to the property. For a rental, the DSCR path is the relevant one.
| Factor | DSCR rental loan | Asset-depletion mortgage |
|---|---|---|
| Typical use | Investment property | Primary residence |
| What drives the loan | Rent vs. payment | Liquid assets as income |
| Your income | Not the centerpiece | Imputed from assets |
| Limit at $10M | Leverage and coverage | Asset pool size |
| Where it breaks | Rent too low | Illiquid or unvested equity |
If you are buying both a home and a rental, they are two separate files with two separate tests. The same liquid dollars cannot be counted twice. Plan your cash across both.
How the Sale Proceeds Shape the File
The size of your payout matters less than whether it is liquid, vested and documented. Expect to provide the sale agreement, the closing statement, and statements showing the funds in your own account. Seasoning timelines vary by lender. Keep the money where the paper trail is clean, and avoid shuffling it between accounts without a reason.
Subtract the pieces that are not countable:
- Escrow holdbacks that have not yet been released.
- Earnouts and seller notes, which may require explanation and often do not count as cash.
- Rollover equity and unvested shares.
- Money set aside for obligations arising from the sale.
- Funds held inside a business entity rather than in your own account.
What remains is your real pool for down payment and reserves. 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.
One practitioner-level pattern: on very large files, the delay is rarely the property. It is the funds. Founders who line up the closing statement and account history before they pick a property tend to have a cleaner file than those who start from the listing.
What the Decision Looks Like
Before you commit to a $10M rental, answer these in order:
- Does the rent support it? Get an appraisal-style rent estimate and the real tax and insurance figures first.
- Can you carry 40% down? That cash is no longer available for other uses.
- Are your reserves separate? They cannot come from cash-out proceeds on files above $3,000,000.
- Are you comfortable with recourse? The guaranty follows you.
- Is the second appraisal likely to hold? Two appraisals above $2,000,000 means two chances for value to come in light. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Sometimes the better move is a smaller property with stronger coverage, or two properties in the $3,000,000–$4,000,000 band. That band’s 65% purchase ceiling leaves less cash tied up per dollar of price. It is a genuine tradeoff. A single trophy asset has fewer tenants to manage but less exit liquidity.
For related reading, Lendmire’s piece Can a Post-Exit Founder Get Full Financing on a Super Jumbo DSCR Rental? covers the leverage question in more depth. Another piece explains how loan tier sets LTV on a super jumbo DSCR rental for a post-exit founder. For the basics behind all of this, the complete DSCR loans guide walks through the loan from the start.
Frequently Asked Questions
Can I borrow 80% on a $10M rental?
No. The 80% ceiling applies on a purchase only up to $1,000,000 in loan size. Above $4,000,000, leverage is reviewed case by case, with 60% as the ceiling on review, subject to underwriting. Every figure is a ceiling, not a promise.
Do I need to show my personal income?
The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Your credit, liquidity, entity papers and the property’s rent are all reviewed. Traditional personal-income documentation is not the centerpiece, but the file is not undocumented.
Can a sub-1.00 rental get a loan this large?
Not at the top of the ladder. Coverage below 1.00 is a path through select programs, but only up to a $2,000,000 loan at reduced leverage. At $10M, expect to need coverage of 1.00 or better.
Does my reserve requirement change with more properties?
No extra reserves are required for your other financed properties. Reserves are measured on the subject property: typically 6 months, or 12 for a first-time investor. You can have up to 20 financed properties, subject to underwriting.
Can I use cash-out proceeds from another property to fund the purchase?
You can use proceeds from other properties toward the down payment where the program allows. They do not satisfy reserves on files above $3,000,000. Cash-out loans are unavailable above a $3,000,000 loan amount, and proceeds are capped at $1,500,000 above 60% LTV. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Next Step
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Lendmire is a mortgage broker arranging business-purpose investment financing through select lenders in its wholesale network, across 41 markets including Washington, D.C. You can start with a quote request, or call 828-256-2183.
Before you chase a trophy property, run its rent against its full carrying cost. That number, not the price tag, decides how much of it a lender will fund.
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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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. FHFA conforming loan limit announcement
2. Orrick Infobytes summary of the conforming loan limits
3. Federal Register, ability-to-repay and qualified mortgage standards final rule
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Asset Depletion vs Bank Statements vs DSCR for a Luxury Rental Buyer · Post-Sale Assets vs Bank Statements vs DSCR for a Founder Buying Luxury · How a Lake Tahoe Luxury Rental DSCR Loan Works
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- 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
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.