The Quick Read: Super jumbo interest-only loans let a borrower with a large stock position finance a high-balance property without selling shares. Through select wholesale programs, the stock can count as an asset or as reserves, and the payment covers interest only for a set window before the balance amortizes. Each file is underwritten individually, and every loan above $4,000,000 is reviewed case by case before submission.
- Interest-only on the portfolio program runs to 85% LTV with a 700 credit floor, on purchase and rate-term files only.
- The bank portfolio program allows interest-only to 60% LTV, on 5- and 7-year fixed-period adjustables.
- Qualification can run on bank-statement deposits, on assets, or on the property’s own cash flow.
- Concentrated stock is discounted harder than a diversified fund of the same dollar value.
- The payment steps up when the interest-only window ends. Plan the exit before you sign.
You hold one stock, and it has made you wealthy. It has also made your tax return a poor picture of your finances. That is the borrower this structure serves: founders, executives, physicians, and investors whose net worth sits in a single position. Lendmire’s complete DSCR loans guide covers the investor-loan basics. This piece covers the high-balance, stock-heavy corner.
What Is a Super Jumbo IO Loan?
A super jumbo interest-only loan is a mortgage above standard jumbo size where the early payments cover interest alone. The balance stays flat during that window. Then the full balance amortizes over the shorter remaining term, so the payment steps up at reset.
Through select wholesale programs, sizes run from $300,000 to $30,000,000, subject to full underwriting. Two programs carry that range:
- A portfolio non-QM program handles files to $6,000,000. Its interest-only option uses a 40-year term with a 10-year interest-only period.
- A bank portfolio jumbo program carries twelve-month-statement files to $30,000,000. Its ladder begins above $4,000,000 and overlaps the portfolio program to $6,000,000.
Why non-QM? The federal consumer-finance regulator’s repayment-capacity compliance guide says qualified mortgages may not carry interest-only features. So an interest-only super jumbo is a non-agency product. The lender sets the guidelines and holds the credit risk, which is why the file is read by a person and not scored by a formula.
How Does Underwriting Treat Your Stock?
Underwriting treats stock as an asset to be valued and discounted. It does not treat it as income you must liquidate. The calculation is hypothetical, so you do not sell shares to use it. How hard the stock gets discounted decides most of the outcome.
The OCC’s Bulletin 2019-36 describes this method as asset dissipation underwriting. It spreads eligible assets into a hypothetical income stream. It is often used for high-net-worth applicants with large liquid assets and thin cash flow. It sets a prudence standard and no fixed formula. Asset quality, liquidity, and price volatility drive the discount. That is why one stock position can count for less than a diversified fund of equal value.
Here is how the process runs, step by step:
1. Pick a qualification path. Deposits, assets, or property cash flow.
2. Document the assets. Expect recent brokerage statements showing ownership, current value, and where the account sits.
3. Apply the discount. The lender decides how much of the single-stock value counts.
4. Test credit, reserves, and debt-to-income. Minimum credit scores vary by scenario and by program, with different thresholds on the portfolio program, the bank program, and for loans above the super-jumbo line. Debt-to-income limits also vary by program.
5. Review the property. Larger balances draw closer appraisal review.
Policies differ by lender. Across the wholesale network, two programs can reach different income figures from the same statement. That spread is the reason to shop the file.
Which Qualification Paths Exist?
Four paths exist, and the right one depends on where your wealth shows up on paper. Through select wholesale programs, subject to full underwriting:
- Bank statements. Twelve or 24 months of personal or business deposits, reduced by an expense ratio. The bank program uses twelve. Transfers from your own business into your personal account count in full.
- Asset allowance. Liquid assets are divided by 36 months (supplemental, when debt-to-income before the asset income is at or below 60%), 60 months (supplemental, when that ratio is above 60%), or 84 months (standalone, or any loan above $3,500,000). The qualifying ratio with asset income counted must still fit the 50% ceiling. This path covers primary and second homes only.
- Assets-only. No debt-to-income test. U.S. liquid assets must equal the loan amount, closing costs, and sixty months of any net loss on other residential property.
- Property cash flow. For a rental, the property’s rent can carry the loan.
Here is where the stock gets specific. Retirement accounts count at 70%, or 80% at age 59.5 and up. Business funds, gifts, most trusts, unvested stock, and cryptocurrency never count. Restricted or unvested shares are the common surprise. If your wealth is mostly RSUs that have not vested, plan on the deposit or property-cash-flow path.
How Much Leverage Does Each Occupancy Allow?
Leverage steps down with size, and each occupancy has its own ladder. Never read one occupancy’s figure as another’s. A band’s top leverage carries its own credit score requirement. It is not a program floor.
| Size band | Primary purchase | Second home purchase | Investment purchase |
|---|---|---|---|
| $1M–$1.5M | 85% | 80% | 80% |
| $2M–$2.5M | 80% | 80% | 80% |
| $3M–$3.5M | 75% | 65% | 60% |
| $4M–$5M | 65% | 65% | 65% |
| $10M–$20M | 55% | 50% | 50% |
Those are ceilings through select wholesale programs, subject to underwriting. The $3M–$3.5M primary figure sits on the portfolio program, and the $4M–$5M figures on primary run on the bank portfolio program. The $4M–$5M second-home and investment figures sit on the portfolio program’s super-jumbo overlays. Everything above $4,000,000 is reviewed case by case before submission, so treat those cells as starting points. Above $3,500,000 on a primary residence, and $3,000,000 on a second home or investment property, overlays apply. They include a 700 credit floor, a clean 0x30x24 housing history, and 48-month seasoning on any credit event. Cash-out proceeds cannot satisfy reserves at that size.
Interest-only is a payment structure, not a leverage boost. Its 85% ceiling applies to purchase and rate-term files on the portfolio program. It never raises a cash-out ceiling. For the cash-out angle, see Lendmire’s piece How to Use IO on a Super Jumbo Cash-Out Before a Planned Sale.
Reserves run 3 months to $500,000, 6 months 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.
Where Do the General Rules Break?
Four edge cases trip up concentrated-stock borrowers more than anything else.
Same assets, different income. The divisor is lender policy. A short divisor produces more imputed income and a long one produces less. Very large loans lean toward the long end, which is why 84 months applies above $3,500,000.
Stock pledged elsewhere. If a securities-based line of credit already sits on the same shares, they cannot also count as free assets. Lenders generally deduct or exclude pledged holdings. Disclose the line up front.
Mortgage versus securities line. FINRA describes securities-backed lines as revolving credit secured by an investment account. It names three risks: unintended tax consequences, a forced sale of holdings, and volatility magnifying losses. These loans are usually variable-rate and can require replenishing collateral if the portfolio falls. A property-secured mortgage has no margin-call trigger tied to your stock. The shares serve only as income or reserves.
Borrowing does not cure concentration. Wealth managers such as Cresset say borrowing against a concentrated position leaves the underlying risk in place. Treat that as commentary, not regulation. It is still sound. Your stock can fall while the loan stays.
What Happens at the Reset?
The payment steps up when the interest-only window ends, and the balance has not moved. On the portfolio program, the 40-year term carries a 10-year interest-only period. On the bank program, the 5- and 7-year fixed-period adjustables carry the interest-only feature. The 10-year fixed-period adjustable is fully amortizing.
Total interest runs higher than on a fully amortizing loan. Principal falls during the window only through voluntary extra payments. Match the window to a real plan:
- A planned stock sale or vesting event before reset.
- A refinance, if credit and the property still support it.
- Voluntary paydowns from other liquidity.
The risk is plain. The stock that supports your qualification is also your riskiest asset. A drop does not trigger a margin call on the mortgage, but it can hurt the next loan’s approval. Do not build a plan that needs the stock to rise.
Who Should Use This, and Who Should Not?
This fits borrowers with big paper wealth, uneven reported income, and a defined liquidity event. It misfits anyone whose plan depends on the balance shrinking or on cheap refinancing later.
| Situation | IO super jumbo | Sell shares | Borrow against portfolio |
|---|---|---|---|
| Keeps the position | Yes | No | Yes |
| Triggers a taxable sale | No | Yes | No |
| Margin-call risk | None on the mortgage | None | Yes |
| Payment steps up later | Yes | No | Varies |
Tax treatment varies; consult a qualified professional before choosing between these paths.
One practitioner pattern shows up often. Files built around a single stock work best when the borrower brings a second path, usually deposits or property cash flow, so the stock discount does not decide the whole outcome. Another common pattern: borrowers who coordinate with their wealth manager before choosing a structure avoid reset surprises.
Consumer mortgage lending is licensed in 16 states, so confirm availability in yours.
Key Terms Defined
Interest-only (IO): a payment period where you pay interest and the balance stays flat.
Super jumbo: a loan above standard jumbo size, with no official federal line; each lender sets its own.
Asset dissipation underwriting: a method that turns eligible assets into hypothetical monthly income.
Reset: the date the interest-only period ends and amortization begins.
Concentrated stock: a large share of net worth held in one security.
Frequently Asked Questions
Do I have to sell my stock to qualify?
No. Asset-based income is a hypothetical calculation, so no shares are liquidated. The lender values the stock, discounts it for volatility, and spreads it over a divisor. Restricted and unvested shares generally do not count.
Does interest-only mean I never repay principal?
No. The principal is still owed, and it amortizes after the interest-only window. The window only delays repayment, and the payment steps up at reset.
Can I use interest-only on any large loan?
No. The 85% ceiling applies on the portfolio program to purchase and rate-term files, with a 700 credit floor. The bank program allows interest-only to 60%. Above $4,000,000, every figure is reviewed case by case.
What if my stock falls after closing?
The mortgage has no margin call tied to share price. A drop can still hurt a future refinance or any reserve requirement the stock was meeting. Keep a plan that does not depend on the stock recovering. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Is a securities-backed line the same risk?
No. A securities line is revolving, usually variable-rate, and callable if collateral value drops. A mortgage secured by the property is not.
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 serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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
3. FINRA
4. Cresset Capital, Concentrated Stock Position Strategies
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 You Get a Super Jumbo Mortgage on a Rural Estate? · How to Meet Super Jumbo Takeout Requirements for a Retiree After an SBLOC · Maxed-Out Jumbo vs Super Jumbo Loan for a High-Earning W-2 Buyer
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.