The Quick Read: The best case on a $3,000,000 non-warrantable condo purchase is typically 20% down, because non-warrantable condos top out at 80% loan-to-value through select wholesale programs, subject to full underwriting. Your credit score, how you use the unit, and the building itself can push the number higher.
Key takeaways
- Non-warrantable condos cap at 80% LTV, so 20% down is the floor, not a typical outcome.
- Bank statements change how your income is documented. They do not loosen the building review or the leverage cap.
- At this price, the loan balance picks the leverage band. The best cell usually needs 720+ credit.
- Plan for 9 months of reserves on a loan this size, plus the down payment.
- Investment use, condotel status, or investor-heavy buildings can lower the ceiling.
Key Terms Defined
Non-warrantable condo: a condo project that falls outside the rules for standard agency-backed loans. The cause is usually the building’s finances, litigation, commercial space, or owner mix, not the unit or the borrower.
Bank statement loan: a mortgage that is reviewed around deposits in your personal or business accounts instead of traditional personal-income documentation. The lender still checks credit, assets, reserves, and debts.
LTV (loan-to-value): the loan amount divided by the purchase price. A higher LTV means a smaller down payment.
Reserves: liquid money left after closing, counted in months of housing payments.
Super jumbo: a loan large enough to sit above standard jumbo limits. Lenders add stricter overlays as the balance grows.
How Is the Down Payment on a $3M Condo Calculated?
Your down payment is 100% minus the maximum LTV the lender allows. At 80% LTV you put down 20%. At 75% you put down 25%. The lender sets the ceiling, and your job is to find out which ceiling applies to your file. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Two separate limits apply, and the lower one controls.
1. The property-type limit. Through select wholesale programs, warrantable condos go to 85% LTV, non-warrantable condos to 80%, and condotels (hotel-style condo buildings) to 75% on a purchase.
2. The loan-size and occupancy limit. Each loan-size band has its own ceiling for primary residences, second homes, and investment property. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
The balance you borrow, not the sticker price, decides which size band you land in. On a $3,000,000 purchase at typical leverage, the loan falls in the $2,000,000 to $2,500,000 band. In that band the best purchase ceiling is 80% on a primary residence, a second home, or an investment property, with credit of 720+ for that leverage.
So at this price the condo-type limit and the size limit agree: 80%. Push your loan balance above $2,500,000 and the picture changes, as the table shows.
| Occupancy (purchase) | Loan band | Best LTV | Down | Credit for this leverage |
|---|---|---|---|---|
| Primary residence | $2M–$2.5M | 80% | 20% | 720+ |
| Second home | $2M–$2.5M | 80% | 20% | 720+ |
| Investment property | $2M–$2.5M | 80% | 20% | 720+ |
| Primary residence | $2.5M–$3M | 80% | 20% | 720+ |
| Second home or investment | $2.5M–$3M | 75% | 25% | 720+ |
Every figure here is a ceiling through select wholesale programs, subject to full underwriting. Your file may land below it. The 80% in the first three rows is also the non-warrantable condo cap, so it cannot go higher no matter how strong you are.
Notice that second homes and investment property match the primary residence in the first band. They fall behind once the loan balance passes $2,500,000. That is why a modest change in price or down payment can change your best cell.
Why Doesn’t Everyone Get the Best Cell?
The credit figure in each band is the score the top leverage needs. It is not a program floor. The floors are 660 on the portfolio non-QM program, 680 on the bank portfolio program, and 700 above the super-jumbo line. A score below 720 in this band takes a lower leverage cell, which means more cash down.
Building and ownership factors can also lower the ceiling. A lender reviewing a non-warrantable building looks at the following.
- Reserves held by the association
- Pending litigation
- Master insurance
- Delinquent dues
- Commercial space
- Investor concentration
- Hotel-style operations
The same building can be an easy file on one program and a harder file on another. Across a wholesale network you see the spread. Some programs price a building’s flaws as a lower LTV. Others decline the building outright. That is why a broker who can place the file with several programs matters more here than at smaller loan sizes.
What Makes the Building Raise the Number or Sink the Deal?
A building problem can do one of three things: add nothing, lower your leverage, or end the file with that lender. The table gives the pattern we see most often across programs.
| Building issue | Typical effect |
|---|---|
| Investor concentration | Risk flag; may cut leverage |
| Pending litigation | Often a decline until resolved |
| Commercial space | Review item; may cut leverage |
| Thin association reserves | Risk flag; may cut leverage |
| Delinquent dues | Risk flag; some programs decline |
| Hotel-style operations | Condotel limits: 75% on a purchase |
| Single-entity ownership | Often the reason for the label |
Treat that table as direction, not a promise. Each program weighs these differently, and the appraisal is checked against the project. Buying several units in one building raises its investor share. That can tip a building into non-warrantable status, and some lenders cut leverage in response.
Status can also change. If the underlying issue gets fixed, a lender may reclassify the building after a new review. If you are buying in a building with a fixable problem, ask whether the lender will re-review it.
One more point deserves a flat statement: a non-warrantable label does not mean the building is bad. Many luxury buildings land there on technicalities such as ownership concentration or commercial space. The label tells you about loan eligibility, not building quality.
How Do Bank Statements Qualify You at This Size?
Bank statements qualify you on documented deposits instead of traditional personal-income documentation. You provide 12 or 24 consecutive months of personal or business statements, and the lender converts eligible deposits into monthly income. Scotsman Guide’s non-QM overview describes the same basic setup: 12 to 24 months of statements, an expense factor (50% in its example), and a profit-and-loss statement as an alternative.
Here is how it works through the programs we place files with.
1. Eligible deposits are totaled. Transfers between your own accounts, loan proceeds, refunds, and one-time deposits are stripped out. Transfers from your own business into your personal account count in full.
2. Business statements need ownership. You typically need at least 25% ownership of the business.
3. An expense ratio is applied to business statements. Fixed ratios run 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 is another option. A profit-and-loss method caps at 80%.
4. The total is divided by the statement months. That gives monthly qualifying income, which feeds the debt-to-income test.
5. DTI can reach 50%. That ceiling holds across the programs described here.
Twelve months against twenty-four matters at this size. A strong recent year can carry the file on 12 months. If your income swings, 24 months can smooth it, but a weak early stretch can drag the average down. The bank portfolio program uses 12 months.
Statements must be consecutive. Transaction histories do not substitute for statements.
If you would rather qualify on assets, two paths exist for primary and second homes. Asset allowance divides liquid assets by 36, 60, or 84 months. The 84-month divisor applies to standalone use and to any loan above $3,500,000. Assets-only needs liquid U.S. assets equal to the loan plus closing costs. Retirement accounts count at 70%, or 80% at age 59½ and over. Business funds, gifts, and cryptocurrency never count.
For an investment condo, a DSCR path can work where rent covers the full monthly obligation. Lendmire’s complete DSCR loans guide explains when that route beats bank statements. 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 Does Underwriting Actually Check on These Files?
Bank statement loans are fully underwritten. For owner-occupied borrowers, the CFPB’s ability-to-repay compliance guide says lenders must make a reasonable, good-faith determination that you can repay, and verify what they rely on with third-party records. That is why the lender reads your statements line by line instead of taking your word.
Expect a review of credit, assets, reserves, and debts. Credit generally starts at a 660 floor on the portfolio program, 680 on the bank program, and 700 above the super-jumbo line. Expect the building review to run alongside, not instead of, your own approval. Two approvals happen at once: yours and the building’s.
What Total Cash Do You Need Beyond the Down Payment?
Plan for the down payment plus reserves plus closing costs. Reserves are the piece buyers underestimate at this size.
Through select wholesale programs, reserves run 3 months up to a $500,000 loan, 6 months up to $1,500,000, and 9 months above. Add 2 months for each additional financed property, to a 12-month maximum. First-time investors need 12 months. At $3,000,000, count on the 9-month tier.
A practical cash checklist:
- Down payment at your leverage cell
- 9 months of reserves, in liquid assets
- Closing costs and prepaid items
- Statements showing where your down payment came from. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Document your source of funds early. Business funds and gifts do not count toward asset-path qualification, and each program has its own rules on what counts toward reserves, so ask before you wire anything.
What If the Number Comes Back Worse Than Expected?
You have four moves, and they stack.
1. Raise your score. Moving from a lower credit tier into 720+ can lift you into the best cell of the band.
2. Put more down. Dropping your loan amount can move you to a more favorable band or a more flexible program.
3. Switch documentation. Compare personal statements, business statements, a profit-and-loss method, or a DSCR path for an investment unit. The one that supports the loan best may differ from the one you assumed.
4. Have the building reviewed differently. Another program may treat the same project more favorably, especially if the issue is concentration rather than litigation.
Lendmire’s piece How to Qualify for a Bank Statement Loan for a Non-Warrantable Condo walks through the file-prep side of this in more detail.
Where Does the General Rule Break?
Four edge cases move the answer.
- Larger balances. On a primary residence, super-jumbo overlays begin above $3,500,000. On a second home or investment property, they begin at $3,000,000: a 700 credit floor, a 0x30x24 housing history, 48-month seasoning on any credit event, and U.S. citizen or permanent resident status. Above $4,000,000, every file is reviewed case by case before submission.
- Condotels. A building run like a hotel gets 75% on a purchase and 65% on a cash-out through select wholesale programs. The bank program drops to 50% on a cash-out.
- Refinance and cash-out. The ladder is lower. In the $2M to $2.5M band on a primary residence, the best cash-out cell is 70%, versus 80% on a purchase. The portfolio program caps cash-in-hand at $1,500,000 above 60% LTV. Lendmire’s piece on how much a super jumbo cash-out releases on a non-warrantable condo covers that side.
- Investment use. At this loan size, investment property matches a primary residence in the first band, then falls to 75% as the loan grows. Asset paths are not available for investment property. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Common Mistakes and Myths
“Bank statements mean no underwriting.” That is false. The file is fully underwritten, and you will be asked for more, not less.
“Non-warrantable means unfinanceable.” False. It means fewer programs and a lower leverage cap than a warrantable condo, which goes to 85%.
“Bank statements waive the building review.” False. The building is reviewed no matter how you document income.
“The expense factor is fixed.” False. Fifty percent is an example, not a rule. The ratio depends on your business type and documentation.
“A $3M price means one set answer.” False. Your loan balance, occupancy, credit, and building all move the number.
The costliest mistake is signing a contract before knowing whether any program will finance that specific building. Ask first.
Frequently Asked Questions
Is 20% down enough on a $3M non-warrantable condo?
It is the minimum at the ceiling, not a typical outcome. Non-warrantable condos cap at 80% LTV through select wholesale programs, subject to underwriting. To reach it you generally need credit of 720+ in the band that fits your loan. A lower score, a flagged building, or investment use at a larger loan balance can push your down payment higher.
Does a second home or investment condo need more down than a primary residence?
At this size, not in the first band. Primary, second home, and investment all show an 80% purchase ceiling when the loan sits between $2,000,000 and $2,500,000. In the next band, $2,500,000 to $3,000,000, a primary residence holds at 80% while the others drop to 75%. Super-jumbo overlays begin at $3,000,000 for second homes and investments.
Can I use 12 months of statements instead of 24?
Yes. Both options exist through select programs, and the bank portfolio program uses 12. The shorter window rewards a strong recent year. The longer one smooths uneven income. The lender divides eligible deposits, after your expense ratio, by the months you submit.
How many months of reserves will I need?
Typically 9 months on a loan above $1,500,000, plus 2 months for each additional financed property up to 12 months. First-time investors generally need 12. Reserves are liquid assets left after closing, so budget them on top of the down payment.
What if the building is a condotel?
Expect a lower cap. Through select wholesale programs, condotels run 75% on a purchase and 65% on a cash-out, and the bank program goes to 50% on a cash-out. Fewer programs take them, so the building should be reviewed before you make an offer.
Next Step
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, so it shops multiple wholesale programs for you. Nothing here is a commitment to lend, and every file is underwritten individually.
Before you chase a lower down payment, find out whether any program will finance that exact building, because that answer sets the ceiling for everything else.
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 broker licensed for consumer lending in 16 states. 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”
2. CFPB, Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
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 Much Down Payment Does an Interest-Only Super Jumbo Bank Statement Loan Need? · How Much Can Influencers Borrow With a Bank Statement Loan? · How Much Can You Borrow With a Super Jumbo Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.