The Quick Read: Usually not at a true super jumbo balance, but often yes at a smaller loan size. Non-warrantable status alone does not block a DSCR loan, because these loans are not sold to the agencies. Size does the blocking. Through select wholesale programs, a non-warrantable investment condo tops out at 75% LTV and $1,500,000, and short-term-rental (STR) files stop at $2,000,000, all subject to underwriting.
- A non-warrantable label narrows the lender pool and lowers the leverage ceiling. It does not end the conversation.
- STR income is counted at 80% of gross, and the file needs coverage of 1.00 or higher.
- HOA dues sit inside the monthly obligation, so a high-amenity building can thin coverage even when nightly revenue is strong.
- A $10,000,000 non-warrantable unit does not fit under a $1,500,000 cap at any normal leverage. The gap is funded with equity or a different structure.
- Municipal and HOA permission for STR is documented per property, never assumed.
DSCR means debt service coverage ratio. It measures whether the property’s rent covers its monthly obligation. Across the wholesale network Lendmire works with, the ceilings in the table below are the pattern on high-balance condo files. Lendmire’s complete DSCR loans guide covers the basics if the term is new.
Short-Term Rental Calculator
Run the STR 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 nightly rate, occupancy, taxes, and insurance for a more accurate picture.
Short-term rental income is documented with a 12-month history or a market data report. Program parameters update from Lendmire’s centralized guideline source.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Nightly rate, occupancy, taxes, and insurance are editable estimates. 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.
Key Terms Defined
Non-warrantable condo: a condo project that fails agency project standards. The label describes the building’s paperwork and finances, not how well the unit rents.
Condotel: a condo run like a hotel, often with a front desk and a rental program. It sits in a tighter loan tier than an ordinary non-warrantable condo.
Super jumbo: a lender’s shorthand for where its standard loan grid ends and a higher-balance tier begins. No regulator defines it.
PITIA: principal, interest, taxes, insurance and HOA dues. That is the monthly obligation your rent has to cover.
ITIA: the same obligation on an interest-only loan, with no principal in it.
Haircut: the discount a lender applies to gross revenue before counting it as income. On STR files here, counted income is 80% of gross.
Seasoning: the waiting period between two events, such as a past credit event and a new loan. The super jumbo overlay wants 48 months of it.
Why Doesn’t “Non-Warrantable” End the Conversation?
Because warrantability is an agency label, and DSCR loans are not agency loans. A conventional lender needs the building to pass project standards so the loan can be sold. A DSCR lender keeps or places the loan elsewhere, so it reads the same building facts as risk to price, not a pass/fail gate.
A building usually lands in the non-warrantable bucket for ordinary reasons. The HOA questionnaire (Fannie Mae’s version is Form 1076) asks about hotel-style or rental-pooling operations, developer control, delinquent dues, investor concentration, litigation, commercial space, insurance gaps and thin reserves. Any one can tip a building over.
On our files, the label does two things. It shrinks the number of lenders willing to look. It also lowers the maximum leverage. Neither one rules out a DSCR loan.
Super jumbo works the same way. It is not a regulated category. It is a signal that you are above the standard grid and into a tier with tighter leverage, stricter credit and more reserves.
Which Limit Binds First?
Property type binds first, then loan size, then income method. A luxury operator usually hits the property-type cap before anything else. The table shows the ceilings on business-purpose investment condos through select wholesale programs, subject to underwriting.
| Building type | Leverage ceiling | Size ceiling | Key condition |
|---|---|---|---|
| Warrantable condo, STR | 75% LTV, purchase | $2,000,000 | 1.00+ coverage |
| Non-warrantable condo | 75% LTV | $1,500,000 | Building reviewed |
| Condotel | 75% purchase / 65% refinance | $1,500,000 | $250,000 cash in hand |
| Warrantable condo, long-term rent | 75% purchase to $3,000,000; 65% above | $10,000,000, on review above $4,000,000 | Credit 700+ above $3,000,000 |
That last row is the super jumbo ladder. Above $3,000,000 on a purchase, leverage steps to 65%, then 60% on review above $4,000,000. Credit tightens to 700 above $3,000,000. Those steps apply to warrantable collateral on a long-term-rent basis. They do not carry over to a non-warrantable unit.
Here is the luxury collision. A trophy unit priced at several million dollars sits above the non-warrantable cap and above the STR cap. No leverage level fixes that, because the ceiling is a dollar amount, not a percentage. You close the gap with equity or you change the structure.
Another quirk: the STR cap sits below the overall program cap. A $2,500,000 warrantable condo can qualify on long-term rent but not on STR income. That tradeoff matters, and the worked example below shows why.
How Does STR Income Get Counted?
STR income is counted at 80% of gross, using one of two sources. On a refinance, the source is twelve months of operating history. On a purchase, it is the appraisal’s short-term-rent analysis.
Either way, the file needs coverage of 1.00 or higher. STR files also go to experienced investors only, meaning twelve months owning income property in the last thirty-six. STR income cannot be used on the no-ratio path.
Two traps show up here.
First, the nightly-rate-times-30 shortcut. The appraisal’s rent schedule (Form 1007 for a single unit, Form 1025 for two to four units) captures monthly market rent, not nightly rates. Whether STR income counts at all is the lender’s decision, not the appraiser’s.
Second, gross-revenue pro formas. Many operators pitch a deal on gross booking revenue. The lender counts 80% of it. A deal that looks comfortable at gross can look thin at the counted figure.
If a purchase has no hosting history, the appraisal’s STR analysis stands in. If neither source supports the number, the fallback is long-term market rent. For a nightly-rate luxury unit, that usually means weaker coverage, subject to underwriting.
Worked Example: One Luxury Unit, Three Structures
Run the numbers on a hypothetical condo. These are modeled assumptions, not market data, and they are expressed as ratios on purpose.
Step one: gross pro forma. Suppose gross STR revenue, set against the full monthly obligation, shows 1.44x. That is the number a seller’s pitch deck would print.
Step two: the haircut. Lenders count 80% of gross, so 1.44x becomes about 1.15x. Still above 1.00x. Good.
Step three: HOA dues. Luxury buildings carry heavy dues, and dues sit inside PITIA. Say dues push the total obligation up 12% from the earlier figure. Coverage becomes 1.15x divided by 1.12, or about 1.03x. Thin, but above the 1.00x STR minimum.
Step four: a bit more. Say a special assessment or dues increase adds another few points to the obligation. Coverage slips under 1.00x, and an STR file no longer fits.
At that point there are paths to review. One is to bring more equity so the balance is smaller. Another is interest-only, where the lender qualifies the file on ITIA instead of full PITIA. Interest-only runs 120 months on 30- and 40-year terms, to 75% LTV at most, with coverage of 0.75 or better. It lifts the ratio, but payments rise when the interest-only period ends. Plan for that reset. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Sub-1.00 coverage is also a real path through select lenders in the network, to $2,000,000 at reduced leverage. LTV and terms adjust, subject to underwriting. STR income cannot be used on the no-ratio route, so an STR file would need to qualify on its documented numbers.
Here is a practitioner pattern worth knowing. High-amenity resort buildings tend to come in with strong gross revenue and weak counted coverage, because dues eat the margin. The files that go cleanly are the ones where the operator ran the haircut and the dues before choosing the unit, not after.
What Are the Hard Stops?
Some conditions stop a deal outright, and others narrow it sharply. The items below are the conditions to check first, and each can either end a deal or shrink the menu of lenders or the terms available.
- HOA ban at your planned term length. A rule that prohibits rentals at the length you plan to book is a hard stop.
- No documented permission. Municipal and HOA permission must be documented for the specific property. 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.
- Mandatory rental pool. This narrows the lender pool sharply but does not automatically disqualify the unit. Some programs will look at it. Many will not. Expect a smaller menu and tighter terms.
- Heavy litigation or serious insurance gaps. These can push a building outside what lenders will review.
- Mislabeled building risk. A building with heavy nightly-rental activity can be read as hotel-style even if it is not formally a condotel. The label is not always fixed, so ask early how the lender classifies it.
One more wrinkle. HOAs can amend rental rules after you buy. Whether a new restriction reaches earlier buyers varies by state and by the building’s documents. Read the governing documents, not just the listing.
Does the Agency Rule Change Matter Here?
Only a little. Conventional eligibility still does not govern DSCR. But the definition of non-warrantable is moving, so a building’s status can change.
A recent Fannie Mae lender letter retired the 50% investor-concentration cap for established projects under full review, per HousingWire. The Community Associations Institute reports the same change. The same letter raises reserve minimums from 10% to 15% of budgeted assessment income for full-review applications, and new-project presale rules still apply.
An accounting-firm analysis from PKF O’Connor Davies describes the mix as stricter reserve and documentation rules alongside looser concentration limits. A building that failed last year may pass now. The reverse can happen too.
For you, the practical point is simple. Do not decide from an old label. Ask for a fresh read on the building. And remember that for an STR building, the real question is still whether the DSCR program and local rules allow short-term rental.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
How Do Appraisals Work on Unique Luxury Units?
Luxury condos have thin comparable sales. That makes the appraisal the hardest part of the file, not the easiest.
Expect the appraiser to struggle to find close comps, especially for condotel-style or heavily amenitized buildings. Expect a longer review if the unit is unusual. Above $2,000,000, two appraisals are required, which doubles the chance of a value gap.
Prepare in three ways. Gather recent sales in the same building. Have the HOA documents ready so the appraiser can confirm what is and is not included. And on a purchase, expect the rent analysis to drive the STR income figure, so make sure the appraiser sees the building’s rental activity.
A value that comes in below contract hits the balance and your equity at the same time. Budget cash for it.
What If Your Price Is Above the Cap?
Five options exist, each with a tradeoff.
| Situation | Likely path | Tradeoff |
|---|---|---|
| Price above $1,500,000, non-warrantable | Add equity to fit the cap | More cash into one asset |
| Same unit, STR income needed | Keep balance within $1,500,000 | Equity, not leverage, closes the gap |
| Price above $2,000,000 | Warrantable building, long-term rent basis | STR income not counted |
| Price above $3,000,000 | Warrantable collateral at 65% on a purchase | Credit 700+, tighter overlay |
| Gap too large | Personal-income jumbo or portfolio loan | Income and debt ratios reviewed |
On the last row, Lendmire has written about how a traditional jumbo compares with a super jumbo DSCR on a non-warrantable luxury condo and about portfolio loans versus super jumbo DSCR for a luxury STR operator.
A warrantable building gets better leverage tiers and a higher STR cap. A non-warrantable building may offer the better location or amenity set. The stronger play is often the warrantable unit at a slightly lower price, though an operator chasing a specific address could argue the other way.
Reserves, Experience and Entity Rules
These rules are short but they decide files.
| Item | Typical requirement |
|---|---|
| Reserves | 6 months of PITIA on the subject (ITIA if interest-only) |
| First-time investors | 12 months of reserves |
| STR experience | 12 months owning income property in the last 36 |
| Credit floor | 660, and 700 above $3,000,000 |
| Properties | Up to 20 financed properties |
Reserves are measured on the subject property. There are no extra reserves for other financed properties. Above $3,000,000, cash-out proceeds never satisfy reserves.
Entity vesting is generally welcome, subject to program terms. An LLC can hold title. Layered entities, meaning an LLC owned by another LLC, are not accepted. DSCR loans are designed for non-owner-occupied investment properties, so they are reviewed differently from a standard owner-occupied mortgage.
Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. A personal-income jumbo reviews your income and debt ratios instead.
Pre-Application Checklist
1. Pull the HOA documents and questionnaire. Confirm whether the building is non-warrantable and why. 2. Confirm the HOA and municipal permission for STR at your planned term length, in writing, for this unit. 3. Pick the income path: twelve months of history on a refinance, or the appraisal’s STR analysis on a purchase. 4. Run coverage at 80% of gross with the full dues in the obligation. 5. Check your balance against the $1,500,000 non-warrantable cap and the $2,000,000 STR cap. 6. Set up the entity, with no layered ownership, and confirm title. 7. Source reserves: six months on the subject, twelve if you are a first-time investor. 8. Confirm your experience: twelve months owning income property in the last thirty-six.
Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Is super jumbo an official loan category?
No. It is a lender’s label for the point where its standard grid ends and a higher tier starts. The tier brings lower leverage, stricter credit and more reserves. In Lendmire’s network, the figures that matter are the actual ceilings by property type and loan size, not the label.
Can a condotel qualify?
Sometimes. Condotels sit in a tighter tier: 75% on a purchase and 65% on a refinance, up to $1,500,000, with $250,000 in cash in hand, subject to underwriting. Network lines for second liens may exclude them. A condotel is harder than an ordinary non-warrantable condo, so expect a smaller lender pool.
Do I need a year of booking history?
Only on a refinance. On a purchase, the appraisal’s short-term-rent analysis stands in for history. Either way, the lender counts 80% of gross, and you need twelve months owning income property in the last thirty-six. A purchase with no history still has to show coverage of 1.00 or higher.
Do HOA dues count against coverage?
Yes. Dues are part of PITIA, so they sit in the monthly obligation your rent must cover. A strong-revenue unit in an amenity-heavy building can still land under 1.00x. Run the numbers with dues included before you write an offer.
Does a rental-pool requirement disqualify the unit?
It does not automatically, but it narrows the lender pool sharply. Some lenders will not review mandatory pools at all. Others will, at tighter terms. Confirm the pool rules in the governing documents before you commit.
The 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 broker arranging business-purpose financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Nothing here is a commitment to lend, and every file is underwritten individually.
Luxury condo buyers who run coverage at the haircut figure, with dues included, before they make an offer tend to find out early whether the unit fits.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
2. HousingWire
3. Community Associations Institute
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: How a Portfolio Operator Moves to Non-Recourse Super Jumbo DSCR · How to Document Super Jumbo DSCR STR Income for a Condotel · Can a Non-Warrantable Luxury Tower Buyer Get a Super Jumbo DSCR Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.