The Quick Read: A partner can reach a super jumbo balance by proving cash flow instead of tax-return income. Underwriters read your bank deposits, your assets, or a rental’s income. Which route fits depends on where your money actually lands and what you are buying.
- Cash received beats income allocated. A K-1 shows your share of partnership income. Bank-statement programs look at the cash that reached your accounts.
- Business statements need real ownership. Through select wholesale programs, business-account deposits require at least 25% ownership. Transfers from your business into your personal account count in full.
- Leverage steps down as the loan grows. On a primary residence purchase, the maximum loan-to-value falls as the loan amount rises, subject to underwriting.
- Above the top loan tier, every file is reviewed case by case before submission. Treat any figure at that size as a starting point, not a promise.
- A rental can skip personal income math. A DSCR loan tests the property’s rent against its housing costs, so your K-1 drops out of that calculation.
Key Terms Defined
Super jumbo mortgage: a home loan so large that most lenders add extra rules on credit, leverage, and reserves. No official definition exists, so each lender draws its own line.
K-1 (Schedule K-1): the tax form a partnership issues to each partner. It reports your share of the partnership’s income, deductions, and credits.
Distribution: cash a partnership actually pays out to you. It is reported separately from your share of income.
Bank-statement loan: a non-QM loan, meaning one that sits outside standard agency rules. It measures income from 12 or 24 months of deposits instead of traditional personal-income documentation.
Expense ratio: the share of business deposits the lender subtracts as operating costs before counting income.
DSCR (debt service coverage ratio): monthly rent divided by the full monthly payment, including principal, interest, taxes, insurance, and association dues.
Reserves: liquid money left over after closing, which the lender wants to see as a cushion.
What Makes a Mortgage “Super Jumbo”?
No regulator defines the term. Lenders set their own threshold, and the extra rules usually start in the low-to-mid millions. Through the wholesale network Lendmire works with, the heavier overlays begin above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Two programs carry these files, and it helps to name them once. The first is a portfolio non-QM bank-statement program, which we’ll call the portfolio program. It handles loans from $300,000 to $6,000,000. The second is a bank portfolio jumbo program, which we’ll call the bank program. It carries twelve-month-statement files on its own size ladder, and that ladder begins above $4,000,000 and runs to $30,000,000. The two overlap between $4,000,000 and $6,000,000.
Why do these loans sit outside the standard mortgage box? Size is the main reason. A loan too large for agency purchase is generally non-QM, and that is simply how the market sorts it. The federal consumer-finance regulator’s own assessment of its repayment-capacity rules notes that loans not eligible for agency purchase, most commonly due to loan size, are generally non-QM.
Non-QM does not mean loose. Every program covered here is fully documented. Everything below is available through select wholesale programs, subject to full underwriting, and none of it is a commitment to lend.
What a K-1 Does and Does Not Prove
A K-1 proves ownership and allocation. It does not prove cash. The IRS instructions for Schedule K-1 explain that the partnership uses the form to report your share of income, deductions, and credits. Distributions are reported separately, in Box 19.
Two numbers, two lines. Your allocated income might be large while your cash received is small, because the partnership kept the earnings. The reverse happens too. A partner can draw heavily from a business whose allocated income looks thin after deductions and depreciation.
That gap is the whole story for most partners. Your returns can understate what you really take home, and a lender relying on them sees the smaller picture. Bank-statement and asset-based programs exist to measure the cash instead.
Why Full Documentation Stalls for Partners
Full-documentation underwriting asks you to prove income from the returns. For a partner, that creates three snags.
First, deductions shrink the K-1 income the lender can count. Second, allocated income that was never paid out needs support. Agency-style logic validates it either with a distribution history or with proof the business has the liquidity to pay it out, as Fannie Mae’s selling guide on K-1 income shows for borrowers under 25% ownership. That is a contrast, not the rule for the programs here. Third, the partnership’s own debts can feed back into your personal picture.
Partners with strong cash flow often hit this wall and think they cannot borrow, but they can; they just need a different documentation path.
Four Ways In: The Paths Compared
The right path depends on the property and on where your money sits.
| Path | How income is measured | What the K-1 does | Best fit |
|---|---|---|---|
| Bank statements | Deposits after an expense ratio | Proves ownership share | Strong deposits, residence or rental |
| Asset allowance | Liquid assets ÷ 36, 60 or 84 | Mostly irrelevant | Large liquid balances |
| Assets only | No DTI; assets cover the loan | Irrelevant | Very liquid borrowers |
| DSCR | Property rent vs. full payment | Drops out | Rental purchase or refinance |
Asset allowance and assets-only apply to primary and second homes only. Asset allowance caps at 80% leverage. Assets-only needs U.S. liquid assets equal to the loan plus closing costs, plus sixty months of any net loss on other residential property. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The structure is the point. Pick the path first, and then size, leverage, and documents follow.
How a Bank-Statement File Treats a Partner
Underwriters turn deposits into income in a fixed sequence. Most programs in the network follow it:
1. Pull 12 or 24 consecutive months of statements. The bank program uses 12. Transaction histories never substitute.
2. Strip out credits that are not income, such as transfers between your own accounts, loan proceeds, and refunds.
3. Apply your ownership share if you use business accounts. A 50% partner counts half of eligible deposits.
4. Subtract an expense ratio from business deposits. 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 or a profit-and-loss method, capped at 80%, can replace them.
5. Divide by the number of statement months.
6. Test the result against the new housing payment and your other debts. Debt-to-income can run up to 50%.
Run the numbers on a hypothetical partner who owns 50% of a firm with three employees. The 40% ratio applies. Half the eligible deposits belong to the partner, and 60% survive the expense ratio, so the file counts about 30% of the firm’s eligible gross deposits. Divide that by 12 or 24 and you have monthly income. That is a modeled illustration, not a quote.
Now change one fact. The same partner moves business money into a personal account each month. Those transfers from your own business into your own account count at 100%. No ownership proration and no expense ratio apply to them. Many partners who thought they had thin qualifying income find their personal statements tell a much stronger story.
Business statements need at least 25% ownership. Below that, personal statements are the cleaner route. Proof of ownership is usually an operating agreement, a K-1, or a CPA letter.
How Much Leverage Can You Get?
Leverage steps down as the loan grows, but it does not fall in a straight line. The bank program takes over above $4,000,000, and its best cell at $4M–$5M (65%) sits below the portfolio program’s top cell at $3.5M–$4M (75%). Read the bands as loan amounts, never purchase prices. Multiply price by leverage first, then find the band that loan lands in.
This table shows primary residence ceilings through select wholesale programs, subject to underwriting.
| Loan band | Program | Purchase | Cash-out |
|---|---|---|---|
| $300K–$1M | Portfolio | 90% | 80% |
| $1M–$1.5M | Portfolio | 85% | 80% |
| $1.5M–$2M | Portfolio | 85% | 75% |
| $2M–$2.5M | Portfolio | 80% | 70% |
| $2.5M–$3M | Portfolio | 80% | 70% |
| $3M–$3.5M | Portfolio | 75% | 65% |
| $3.5M–$4M | Portfolio, super-jumbo overlays | 75% | 65% |
| $4M–$5M | Bank, case by case | 65% | 60% |
| $5M–$6M | Bank, case by case | 60% | 55% |
| $6M–$10M | Bank, case by case | 60% | 55% |
| $10M–$20M | Bank, case by case | 55% | 50% |
| $20M–$30M | Bank, case by case | 55% | 50% |
The score a band’s top cell needs is not a program floor. On a primary residence, the top cell needs 680 or higher in the first band, 700 or higher from $1,000,000 to $1,500,000, 720 or higher from $1,500,000 through $3,500,000, and 760 or higher from $3,500,000 to $4,000,000. The bank program holds a 680 floor at every size. A lower score takes a lower cell inside the same band. Overall floors on the portfolio program are 660 up to the super-jumbo line and 700 above it.
Second homes and investment properties run their own ladders, so never subtract from the primary figure. Here is one contrast. In the $3,000,000 to $3,500,000 band, a second home purchase tops out at 65% on the portfolio program.
The overlays above the super-jumbo line are plain. They call for a 700 credit floor, a 0x30x24 housing history, and 48 months of seasoning after any credit event. Borrowers must be U.S. citizens or permanent residents. Non-occupant co-borrowers are out, rural property is out, and acreage stops at ten acres. Remember that any figure above $4,000,000 is reviewed case by case before submission.
Interest-only exists too, with a ceiling of its own. It reaches 85% on purchase and rate-and-term files on the portfolio program, with a 700 floor, and 60% on the bank program. It never raises a cash-out ceiling.
Reserves and Cash-Out on Large Loans
Reserves scale with the loan. Typical programs want 3 months up to $500,000, 6 months up to $1,500,000, and 9 months above that. Each additional financed property adds 2 months, to a 12-month maximum. First-time investors need 12 months. Above the super-jumbo line, cash-out proceeds cannot satisfy reserves.
Cash-out has its own shape. On a primary residence, the best cash-out ceiling is 80%, in the first two bands. Proceeds are unlimited at or below 60% leverage. Above 60%, the portfolio program caps cash in hand at $1,500,000. The bank program publishes no cap, but every file above $4,000,000 is still reviewed case by case. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Where the General Rule Breaks
Rules of thumb fail at the edges. Here are the ones that come up most with partners.
Income allocated, nothing distributed. This stalls agency-style files. Bank-statement paths measure what hit your accounts, and a CPA-prepared profit-and-loss statement can support a business-statement file. Retained earnings leave you with two weak options on a full-documentation file: count only distributions, or prove liquidity.
Minority partner. Under 25% ownership, business accounts are off the table. A minority partner who is paid directly usually does better on personal statements.
Recent buy-in. You have no K-1 history yet. A purchase agreement or operating agreement can serve as ownership proof.
Commingled accounts. Business and personal money in one account needs sorting and written explanations. Expect more questions, not a denial.
Multiple entities. Each one needs its own ownership proof, and deposits cannot be counted twice.
Occupancy. DSCR is for investment properties, not a home you will live in. If the property is your residence, you are back to bank statements or assets.
Above $4,000,000. No flat grid exists. Terms come out of review.
When the Property Pays for Itself: The DSCR Route
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. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
For a K-1 partner, this is the cleanest route to a rental. No personal debt-to-income is built, so partnership debt and K-1 liquidity questions never enter the math. Many programs look for rent that at least covers the full payment, roughly 1.00x or better. Select lenders in the network offer sub-1.00 paths, but leverage and terms adjust when they do.
Credit, reserves, and leverage are still reviewed. On the biggest balances those three usually bind before the ratio does. Lendmire’s complete DSCR loans guide covers how coverage is calculated and how lenders weigh the file.
A rental bought on personal terms adds to your personal debt ratio. That alone pushes many partners with several properties toward DSCR.
Which Path Fits Which Partner?
| Partner profile | Likely path | Why |
|---|---|---|
| Strong deposits, buying a home | Bank statements | Deposits show the cash |
| Large liquid balances, buying a home | Asset allowance | Assets carry the file |
| Buying or refinancing a rental | DSCR | Rent carries the file |
| Under 25% owner, paid directly | Personal statements | Business accounts not eligible |
Some partners fit two rows. A strong-deposit partner buying a rental can run both and see which file shows better leverage.
Documents to Gather
Collect these before you talk to anyone:
- 12 or 24 consecutive months of personal or business statements, every page
- Proof of ownership: operating agreement, K-1, or CPA letter
- An accountant-prepared expense ratio, or a profit-and-loss statement, if you want to replace the fixed ratio
- Written explanations for large deposits and any commingled activity
- Recent statements for the liquid assets you will use as reserves
- For a rental: the lease or a rent schedule, and entity documents if the property is held in an LLC, subject to program guidelines
Even a non-QM lender has to document a good-faith determination that you can repay, which is why statements get screened line by line.
If You Hit a Ceiling
A ceiling is usually a sign that the file needs a change in structure. Fixes, in order of how often they work:
- Put more down. Leverage drops with size, so a lower loan can land in a better band.
- Switch documentation. A partner stalled on business statements may do better with personal transfers, or with an asset path.
- Add liquidity. More seasoned reserves can support a higher cell in the ladder, though a score below the band’s top-cell score still takes a lower leverage cell.
Whether a K-1 partner can get a super jumbo bank-statement loan at all is a related question, covered in Lendmire’s piece Can K-1 Partners Get a Super Jumbo Bank Statement Loan?.
Frequently Asked Questions
Does my K-1 income count on a super jumbo?
Through bank-statement programs, your K-1 mainly proves ownership, not income. Income comes from deposits after an expense ratio. On a DSCR rental loan, K-1 income drops out of the math entirely.
What ownership percentage do I need?
Business-account statements typically require at least 25% ownership. Below that, personal statements are usually the better route. Transfers from your own business into your personal account count in full.
Can I use a super jumbo to buy a rental?
Yes, through investment-property ladders that differ from the primary-residence figures. Bank-statement files on an investment property take their own leverage ceilings, and a DSCR loan is the alternative that tests rent instead of personal income. Eligibility remains subject to underwriting.
Is a super jumbo available in my state?
Lendmire’s consumer mortgage business is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. Availability outside those states depends on the program. Confirm before assuming a path is open.
Does a bank-statement loan mean no documentation?
No. It means income is documented through deposits instead of returns. Credit, reserves, property, and ownership are all reviewed. It is reviewed on documented income under the applicable program, subject to lender guidelines.
Next Step
Reach the team at 828-256-2183 or request a quote.
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 is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS: Partner’s Instructions for Schedule K-1 (Form 1065)
2. Fannie Mae Selling Guide B3-3.4-19: Schedule K-1 Income
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 Mortgage Works for Founders · How a Super Jumbo Bank Statement Loan Works From Application to Closing · How to Qualify for a Super Jumbo Loan as a Trust Beneficiary
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- 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.