The Quick Read: A penthouse loan on bank statements is two separate approvals. The lender converts twelve or twenty-four months of eligible deposits into qualifying income after an expense ratio and tests debt-to-income, while a separate review decides whether the building and the unit are acceptable, and a strong borrower file does not rescue a failing project. Penthouse files also run large, so leverage steps down as the loan grows, and above $4,000,000 every file is reviewed case by case before submission.
- Income comes from eligible deposits, not traditional personal-income documentation, and it is reviewed on documented income under the applicable program, subject to lender guidelines.
- The building gets its own review. A penthouse is a condo unit, and the project questionnaire can stop a file that the borrower’s deposits support.
- Leverage on a condo tops out below the primary-residence ladder: warrantable condos to 85% and non-warrantable to 80%, through select wholesale programs, subject to full underwriting.
- Loan sizes run from $300,000 to $30,000,000 across two wholesale programs, and each has its own ladder.
Key Terms Defined
Bank statement loan: A non-QM mortgage that qualifies the borrower on deposit history instead of traditional personal-income documentation, W-2s or pay stubs.
Expense ratio: The share of business deposits treated as operating cost, which is removed before the remainder counts as income.
Debt-to-income (DTI): Total monthly debts, including the new housing payment, divided by qualifying monthly income.
Reserves: Liquid assets the borrower holds after closing, counted in months of the housing payment.
Non-warrantable: A financing label for a condo project that does not meet agency project standards. It describes the building, not the borrower.
HOA questionnaire: The form the lender sends to the association to document budget, reserves, litigation, owner mix and commercial space.
Condotel: A condo with hotel or mandatory rental-pool features, which takes its own lower leverage cap.
DSCR: Debt service coverage ratio, which tests a rental property’s income against its payment instead of the borrower’s income.
What Is a Bank Statement Loan on a Penthouse?
It is the same documented-income mortgage a self-employed buyer would use on any home, applied to a condo unit at the top of a building. The borrower proves income through consecutive personal or business statements. The lender then underwrites the credit, the assets, the unit and the building.
Lendmire is a broker. It places these files with lenders in a wholesale network rather than lending itself, and lenders review eligibility and approve. Across that network, two programs carry most penthouse-size files. The portfolio non-QM program, which this article calls the portfolio program, takes loans to $6,000,000. The bank portfolio jumbo program, called the bank program here, carries twelve-month-statement files to $30,000,000 on its own ladder. That ladder begins above $4,000,000 and overlaps the portfolio program to $6,000,000. Above $6,000,000 it stands alone.
Lendmire’s consumer mortgage licensing covers 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. A penthouse in another state needs a scope check before anyone discusses structure.
Why a Penthouse Buyer’s Tax Return Understates Income
Founders, physicians, attorneys and other owners often show modest taxable income because of write-offs and retained earnings. Their bank deposits tell a different story. A bank statement program reads the cash that actually moves through the accounts. Tax treatment varies by situation, so consult a qualified professional.
The trade-off is scrutiny of the deposits themselves. Documented income is still verified income. The lender wants proof that each dollar counted is earnings, not a loan, a gift or a transfer.
How Deposits Become Qualifying Income
The mechanics run in a fixed order. Each step is a place where a file can slow down or shrink.
1. Pick the statement source. The borrower supplies 12 or 24 consecutive months of personal statements, business statements, or both. The bank program uses 12. Transaction histories never substitute for statements, and gaps in the sequence stop the file.
2. Apply the expense ratio to business deposits. Business statements require at least 25% ownership. The fixed ratios are 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 route. A profit-and-loss method, capped at 80%, is a third.
3. Count owner transfers in full. Transfers from the borrower’s own business into a personal account count at 100%, because the business expense was already absorbed before the money moved.
4. Divide by the statement months. Eligible deposits after the ratio, divided by 12 or 24, give monthly qualifying income.
5. Test DTI. The new housing payment, HOA dues and every other monthly debt go over qualifying income. DTI can run up to 50%.
6. Underwrite the unit and the building. This is where the penthouse differs from a house.
A Modeled Example, in Ratios
These inputs are assumptions, not market data. Index gross monthly deposits at 100. Screening removes 10 for transfers and a refund, leaving 90 eligible. The business has three employees, so the 40% ratio applies, and qualifying income lands at 54. Say the full housing payment plus dues and other debts add up to 27 on that same index. That is a DTI of 50%, right at the ceiling.
Now run the same borrower with half of the eligible deposits arriving as owner transfers from the business into a personal account. Those 45 count in full, and the other 45 take the 40% ratio, adding 27. Qualifying income rises to 72, and the same 27 of debts now gives a DTI near 38%. In this example, how the deposits arrive moves the number a long way, which is why the statement source and the owner-transfer treatment get reviewed early.
The Second Approval: The Building
The borrower can be fully qualified and the file still stalls on the building. A penthouse is a condo unit, so the lender reviews the project as well as the person.
| Factor | Borrower review | Building review |
|---|---|---|
| What is reviewed | Deposits, credit, DTI, reserves | Budget, reserves, litigation, owner mix |
| Who supplies it | Borrower and accountant | HOA or management company |
| Typical failure | Unexplained or declining deposits | Pending litigation, heavy commercial space |
| Fix | Letter of explanation, cleaner statements | Different program or different building |
HOA questionnaire completeness is the quiet friction point. Management companies are slow to return the form, and a missing page is the same as a missing answer. Request it the day the contract is signed.
Non-warrantable is a financing label, not a defect. Through select wholesale programs, warrantable condos run to 85% on a purchase and non-warrantable to 80%. Condotels and mandatory rental-pool buildings take 75% on a purchase and 65% on a cash-out, and on the bank program the condotel cash-out cap drops to 50%. If the owner cannot control the unit, even these programs may decline it.
Appraisals on Unique Units
Penthouses are the least comparable units in a building. Condo units are typically reported on the individual condominium unit appraisal form, Form 1073, and comparables are supposed to be as similar as possible to the subject. For a one-of-a-kind top-floor unit, that is hard to find. The lender funds on the lower of the price or the appraised value. A thin-comp appraisal that comes in light is the common cause of a leverage reset at this size. An appraisal reconsideration with recent sales in the same building and documented adjustments for floor, view and finish is the standard response.
What Changes at Penthouse Price Points
Leverage steps down as the loan grows, and the ladder is set by loan amount, not purchase price. Compute the price times the leverage first, then read the band for that loan.
For a primary residence on a purchase, through select wholesale programs and subject to full underwriting:
- 90% to $1,000,000 in loan amount, with credit 680 or better at that leverage.
- 85% from $1,000,000 to $2,000,000.
- 80% from $2,000,000 to $3,000,000.
- 75% from $3,000,000 to $4,000,000, which at the top of that band needs the highest credit tier.
- Above $4,000,000 the bank program takes over: 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, each on review and case by case before submission.
Two cautions apply. First, the 90% cell does not apply to a penthouse, because condo caps sit below it. Second, second homes and investment property take their own ladders, and each figure comes from that occupancy’s own ladder, not from subtracting from the primary figure. Never carry a primary-residence number onto a rental penthouse.
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. On the portfolio program the credit floor is 660 up to the super-jumbo line and 700 above it, while the bank program carries its own 680 floor at every size. A lower score takes a lower leverage cell inside the same band. Reserves are 3 months to $500,000, 6 months to $1,500,000 and 9 months above. Each additional financed property adds 2 months, up to 12, and first-time investors carry 12.
Above $3,500,000 on a primary residence, and $3,000,000 on a second home or investment property, super-jumbo overlays apply on the portfolio program. These include a 700 credit floor and a 0x30x24 housing history. They also require 48 months of seasoning after any credit event, U.S. citizen or permanent resident status, no non-occupant co-borrowers, and cash-out proceeds that cannot satisfy reserves.
HOA Dues Move the Number
High-rise dues are often large, and they sit in the housing payment alongside principal, interest, taxes and insurance. The lender counts them in DTI. A penthouse with a modest loan and heavy dues can run a higher DTI than a house with a larger loan.
Run dues into the DTI test before choosing a price. If dues push the ratio toward the 50% ceiling, the expense-ratio election and which statements are submitted become the levers.
The Structures and Variations
Deposits are one path. Several variations exist, and the right one depends on how the borrower holds wealth.
Profit-and-loss method. A P&L-based calculation, capped at 80%, can replace the expense ratio when the deposit history is irregular.
Asset allowance. Liquid assets divided by 36, 60 or 84 months become supplemental income. The divisor is 36 when the DTI before asset income is at or below 60%, and 60 when it is above. It is 84 for standalone use or any loan above $3,500,000. The final ratio with that income counted must still fit the 50% ceiling. This path is for primary and second homes only, up to 80% leverage. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Assets only. No DTI is calculated when U.S. liquid assets equal the loan amount, closing costs and sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% for borrowers 59.5 or older. Business funds, gifts, unvested stock, cryptocurrency and trusts other than a revocable living trust never count.
Interest-only. On the portfolio program, interest-only runs to 85% leverage with a 700 floor, using a 40-year term with a 10-year interest-only period, on purchase and rate-term files. The bank program limits interest-only to 60%, with 5- and 7-year fixed-period adjustables. Interest-only never raises a cash-out ceiling. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Cash-out. Proceeds are unlimited at or below 60% leverage. Above 60% the portfolio program caps cash in hand at $1,500,000, and the bank program publishes no cap. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Where the General Rule Breaks
These are the edge cases that derail penthouse files.
Lumpy or falling deposits. A large one-time deposit from a sale gets excluded, which can leave the remaining history looking thin. A multi-month decline invites questions. Prepare a written explanation before the lender asks for one.
Entity vesting. Bank statement income belongs to an individual, and these loans typically close in the borrower’s personal name. A file that must close in an LLC or trust is program-dependent and often points toward a DSCR structure, subject to program terms.
Condotel and rental-pool penthouses. Mandatory rental programs reduce owner control. Expect the 75% purchase cap, or a decline.
Consumer purpose versus business purpose. The same unit sits under different rules depending on how it is used. A penthouse bought as a home is consumer credit, so the lender must confirm the borrower’s ability to repay. A true investor purchase is business-purpose credit, and the business-purpose exemption in Regulation Z, 12 CFR 1026.3 takes it outside that consumer framework. The test turns on loan purpose and occupancy, not the label on the property, so classification is set at the start of the file.
Low appraisal. Covered above. The remedy is documented reconsideration, or a larger down payment.
Bank Statement, DSCR or Assets: Which Fits?
The loan types test different things. Pick the one whose side of the file is stronger.
| Situation | Better fit | What is tested |
|---|---|---|
| Penthouse as primary home | Bank statement or assets | Deposits or liquid assets |
| Penthouse as second home | Bank statement or assets | Deposits or liquid assets |
| Penthouse held as a rental | DSCR | Rent against the payment |
| Cash-rich, thin deposits | Asset allowance or assets only | Liquidity |
Penthouse rents often look thin against a very large balance. In that case the property’s own cash flow may not carry a DSCR file, and the borrower’s deposits do the work. Every added mortgage then counts against bank statement DTI, while DSCR is judged property by property. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust. Lendmire’s complete DSCR loans guide covers that side of the decision.
Common Penthouse Mistakes
- Counting every deposit as income. Transfers, refunds and one-time sale proceeds come out. Plan on the screened number, not the gross one.
- Skipping the building until late. A failed project review can end a file after the borrower has already paid for an appraisal.
- Reading a primary-residence ladder for a rental. Second-home and investment ladders are separate.
- Forgetting dues in DTI. A modest balance with heavy dues can still push the ratio up.
- Mixing statement sources. Switching between personal and business statements midstream changes the expense treatment.
- Assuming 90% applies. On a condo, the cap sits at 85% or lower.
Lendmire’s article How to Qualify for a Bank Statement Loan for a Penthouse goes deeper on the borrower-side checklist.
Document Checklist
Borrower file: 12 or 24 consecutive months of statements for every account used, an accountant letter if electing an accountant-provided ratio, proof of ownership percentage for business statements, a liquid asset statement for reserves, and explanations for large or unusual deposits.
Building file: the completed HOA questionnaire, current budget and reserve study, master insurance certificate, and details of any litigation or commercial space.
Property file: the purchase contract, appraisal access to the unit, and title and vesting information.
Frequently Asked Questions
Can I use business statements for a penthouse?
Yes, with at least 25% ownership of the business, through select wholesale programs. The lender applies an expense ratio, 20%, 40% or 50% by business type, or an accountant-provided ratio. Personal statements work as well, and owner transfers into them count in full.
Does a penthouse need a larger down payment than a house?
Often. Condo caps sit below the primary-residence ladder: 85% for warrantable and 80% for non-warrantable. Leverage also steps down as the loan size rises, and above $4,000,000 each file is reviewed case by case.
What if the building is non-warrantable?
Some portfolio and non-QM programs finance non-warrantable projects, with leverage up to 80% on a purchase. Condotels and mandatory rental pools take lower caps and can be declined. The label belongs to the building, not the borrower.
Can I buy a penthouse through an LLC or trust?
It depends on program terms. Bank statement income is tied to an individual, and these loans often close in a personal name. An investor purchase held in an entity usually points toward a DSCR structure instead.
Can I rent the unit out?
A penthouse financed as a primary or second home is expected to be used that way. A true rental typically moves to an investment-property ladder or a DSCR loan.
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. Every file is underwritten individually, and nothing here is a commitment to lend.
The penthouse buyers who get through cleanly are the ones who treat the building and the deposits as two files from the first day.
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 that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. 12 CFR 1026.3, Exempt transactions (Cornell Legal Information Institute)
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 a Super Jumbo Bank Statement Loan Works for an Executive Holding Mostly Stock · How a Malibu Bank Statement Jumbo Loan Works · How a Lake Norman Bank Statement Jumbo Loan Works
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.