The Quick Read: Usually at least 25% down, and the ceiling on a non-warrantable condo is the real limit, not the size ladder. Across Lendmire’s wholesale network, non-warrantable condos top out at 75% LTV and a $1,500,000 loan amount, subject to underwriting. Above that loan size, the non-warrantable path generally does not apply, so the buyer either brings more cash to fit under the cap or looks at a different property type.
- Non-warrantable condo purchase: 75% LTV ceiling, so 25% down at best, on loans to $1,500,000.
- The 75% ceiling does not stack on top of the size ladder; the stricter limit governs.
- Credit of 660 or higher is the floor; the top leverage in each band can need more.
- Reserves of 6 months of PITIA on the subject property, 12 for first-time investors.
- HOA dues sit inside the payment, so they reduce the coverage ratio. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
All figures are ceilings offered through select wholesale programs, subject to underwriting and not a commitment to lend.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
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Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. 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.
What Actually Sets the Down Payment?
The down payment is 100% minus the lowest leverage cap that applies to the file, applied to the lower of contract price or appraised value. Two caps compete here: the cap for the property type and the cap for the loan size. The lender takes whichever is lower.
On a standard rental, the size ladder tends to be the only cap that matters. Across the wholesale network, that ladder runs 80% on purchases to $1,000,000, 75% from $1,000,000 to $3,000,000, 65% from $3,000,000 to $4,000,000, and 60% above $4,000,000 on case-by-case review. Those are ceilings for files at 1.00 coverage or better, not promises.
A non-warrantable condo adds its own cap. Most programs we place files with limit that property type to 75% and $1,500,000. So for a loan at or below $1,500,000, the condo cap and the ladder agree at the top of the range, and 25% down is the working floor. For a loan under $1,000,000 the ladder would allow 80% on a warrantable unit, but the non-warrantable cap pulls it back to 75%.
Percent is only half of it. Price matters because the loan amount, not the purchase price, picks the band. Take a non-warrantable unit priced at 4 million. At 75% the loan would run well past the $1,500,000 condo cap, so the cap, not the ladder, decides the outcome. More on that below.
Why Does Non-Warrantable Status Raise the Number?
Non-warrantable means the building, not the unit or the buyer, fails agency project standards. The lender sees a project it cannot resell easily, so it asks for more equity. That is the whole risk logic: harder exit, thinner cushion, higher down payment.
The trigger list is practical. Any one of these can do it:
- High investor concentration in the building.
- Pending or active litigation involving the association.
- Thin HOA reserves or heavy deferred maintenance.
- Commercial or mixed-use space above agency limits. Fannie Mae’s Selling Guide sets a 35% cap on commercial space and a 10% cap on HOA income from non-incidental business arrangements for its own eligibility.
- Hotel-style or condotel operation, including rental-pool arrangements.
- One entity owning too many units.
That agency guide is contrast only. DSCR loans are not agency products, and the network’s lenders run their own project review. A building can fail one lender’s overlay and pass another’s, which is why a file sometimes moves between programs before it moves forward at all.
How the Size Ladder and the Condo Cap Interact
When the two limits conflict, the stricter one wins. This table shows the loan-size ladder next to the non-warrantable condo cap on a purchase, at 1.00 coverage or higher, subject to underwriting.
| Loan amount | Ladder purchase LTV | Non-warrantable cap | What controls |
|---|---|---|---|
| $150K–$1M | 80% | 75% | Condo cap |
| $1M–$1.5M | 75% | 75% | Both agree |
| $1.5M–$2M | 75% | Above cap | Loan-size cap |
| $2M–$3M | 75% | Above cap | Loan-size cap |
| $3M–$4M | 65% | Above cap | Loan-size cap |
| $4M–$6M | 60% on review | Above cap | Loan-size cap |
| $6M–$10M | 60% on review | Above cap | Loan-size cap |
“Above cap” means the loan exceeds the $1,500,000 non-warrantable limit, so the property type is not available at that balance through the network. The ladder bands are loan amounts, never purchase prices. Compute price times leverage first, then read the band for the resulting loan.
Credit shapes the top cell. The 660 floor applies to loans to $3,000,000, and 700 applies above $3,000,000. The best leverage in a band can need a higher score: roughly 660 or better at the top of the lowest band, 700 or better from $1,000,000 to $1,500,000, and 720 or better from $1,500,000 to $3,000,000. A lower score takes a lower leverage cell in the same band.
Super Jumbo Meets Non-Warrantable: What Happens Above the Cap?
“Super jumbo” is a lender label, not a regulatory tier. The only fixed government number is the conforming limit, which Orrick reports at $832,750 for most one-unit properties and $1,249,125 in high-cost areas. Anything above is jumbo, and where super jumbo starts is up to each lender.
Here is the catch. Many buyers reading “super jumbo” picture loans of $3,000,000 and up. A non-warrantable condo in that range does not fit the $1,500,000 property cap. The honest answer is that a large non-warrantable condo purchase usually needs a bigger down payment to bring the loan under the cap, or a different structure.
Run the numbers on it as a percentage exercise. A unit priced at 3 million, financed at the 75% non-warrantable ceiling, produces a loan above the $1,500,000 cap. To fit, the buyer would need to put down roughly half of the price. That is an equity decision, not a lender discount, and it should be weighed against whether the building can be warrantable instead.
If the building turns out to be warrantable after the lender’s review, the picture changes. Warrantable condos follow the size ladder directly, reaching 75% to $3,000,000, 65% to $4,000,000, and 60% on review above that. Two appraisals apply above $2,000,000. The classification of the building is therefore the first question to settle, before price negotiation.
What Does Coverage Do to the Down Payment?
Better coverage does not lower the down payment on a non-warrantable condo below the 75% cap. It does protect the leverage you are offered. Coverage at 1.00 or higher earns full ladder leverage. A file between 0.75 and 0.99 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting. On a non-warrantable condo, expect that adjustment to land on the down payment.
The coverage math is rent divided by the full payment: principal, interest, taxes, insurance, and HOA dues. Condo dues sit in the denominator, and on a luxury building they can be large. Ask the association for current dues before making an offer, because a dues increase can move a file under 1.00.
A bigger down payment also helps the ratio itself. Less debt means a smaller payment, which raises coverage. So a buyer who is short of 1.00 can sometimes restructure by adding equity rather than switching programs. Interest-only helps too: a 120-month interest-only period on 30- and 40-year terms is available to 75% on files at 0.75 coverage or better, qualified on interest, taxes, and insurance, subject to underwriting.
Condotels and Short-Term Rentals Run Tighter
A condotel is a different animal from an ordinary non-warrantable condo. Across the network, condotels run to 75% on a purchase and 65% on a refinance, to $1,500,000, with $250,000 cash-in-hand required. The rental-pool split and management fees also cut the income that counts.
Short-term-rental files carry their own rules. Coverage must be 1.00 or higher, the loan must be $2,000,000 or less, and income counts at 80% of gross. On a purchase, that income comes from the appraisal’s short-term-rent analysis; on a refinance, from twelve months of operating history. The borrower must be an experienced investor, meaning twelve months owning income property in the last thirty-six. 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. Many condo associations restrict or ban short rentals outright.
Cash Beyond the Down Payment
The down payment is not the cash requirement. Add these items:
1. Reserves. Six months of PITIA on the subject property (interest, taxes, and insurance on interest-only files), 12 months for first-time investors. Cash-out proceeds never satisfy reserves. Borrowers do not need extra reserves for other financed properties.
2. Closing costs and appraisal costs. Above $2,000,000, two appraisals apply. Appraisers support market rent and value with standard forms such as the Fannie Mae 1007 rent schedule and 1025 small income property report, though DSCR programs run their own coverage math.
3. Cash-in-hand on condotels. The $250,000 requirement sits on top of the down payment.
4. Special assessments. If the building has one pending, it can change both the cash and the classification.
Purchase versus cash-out matters here too. On a refinance, cash-out runs 75% to $1,000,000, 70% to $1,500,000, and 60% to $3,000,000, with none above. For a non-warrantable condo, the property cap sits inside those numbers. Lendmire’s piece on how much a super jumbo cash-out releases on a non-warrantable condo covers that side in detail.
How to Check the Building Before You Offer
Status can change between contract and closing, so diligence comes first. Ask the association for the questionnaire and these items:
- Delinquency rate on dues.
- Litigation, pending or threatened.
- Reserve funding and any planned special assessment.
- Rental restrictions and the investor-owned share of units.
- Commercial space and any rental-pool or hotel-style arrangement.
- Whether one owner holds a large block of units.
Agency questionnaires such as Form 1076 are a useful template for what to request, though non-QM lenders often use their own versions. The questionnaire’s completeness is a quiet friction point. A partial or stale questionnaire holds the file while the lender waits, and an outdated HOA budget can force a re-request.
Ways to Lower the Cash Required, and When to Look Elsewhere
There are four practical levers:
1. Pick a warrantable building. Warrantable status removes the 75% and $1,500,000 cap and returns the file to the size ladder.
2. Keep the loan inside the cap. A lower loan amount, through a lower price or more equity, keeps the file in the non-warrantable path.
3. Raise coverage. Add equity or choose interest-only to move a borderline ratio toward 1.00.
4. Use a clean entity file. Entity vesting is welcome, with no layered entities, which avoids document delays. Subject to program terms, an LLC can hold title.
The decision against conventional financing is simple. For a one-to-four-unit property where a conventional loan is available, it may cost less. DSCR is the route when the building or the borrower’s income documentation rules conventional out. Lendmire’s complete DSCR loans guide covers that comparison.
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.
Key Terms Defined
Non-warrantable condo: a unit in a building that fails agency project standards, so it cannot be sold to the agencies.
Super jumbo: a lender-set label for very large loans; no regulator defines it.
LTV: loan-to-value, the loan amount divided by the lower of price or appraised value.
DSCR: debt service coverage ratio, the property’s rent divided by its full monthly payment.
PITIA: principal, interest, taxes, insurance, and association dues.
Cash-in-hand: liquid funds a borrower must hold after closing on certain condotel files.
Frequently Asked Questions
Can I get a super jumbo DSCR loan on a non-warrantable condo at all?
Only up to the non-warrantable cap. Through select wholesale programs, that property type tops out at 75% LTV and $1,500,000, subject to underwriting. A loan above that generally does not fit the property type, so a buyer either brings more equity to bring the loan under the cap or looks at a warrantable building.
Does a higher DSCR lower my down payment?
Not below the 75% cap. Coverage of 1.00 or better earns full leverage within the cap, and a stronger ratio helps the file. Below 1.00, select programs may still review the file, but LTV and terms adjust, subject to underwriting.
Is a condotel the same thing?
No. A condotel is stricter than an ordinary non-warrantable condo. It runs to 75% on a purchase and 65% on a refinance, to $1,500,000, with $250,000 cash-in-hand required, subject to underwriting.
Does the HOA’s rental policy matter?
Yes. Rental restrictions, investor concentration, and short-term rental limits all affect eligibility and income. Ask for the governing documents before making an offer, since a building’s rules can change which program fits.
What if my price exceeds the ceiling?
The loan, not the price, is what must fit. If 75% of the price produces a loan above $1,500,000, the buyer must either raise the down payment until the loan fits or consider another structure. Market surveys report non-warrantable down payments commonly in the 25–30% range, per Statements Ready’s market summary; in the network, the cap above governs.
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. A building’s classification and the loan size usually decide the structure, so settle those two first. Reach out at 828-256-2183 or request a quote through Lendmire’s direct quote page.
Tax treatment varies; consult a qualified professional.
For current guidelines and terms, see Lendmire’s super jumbo DSCR 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 specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
1. Fannie Mae Selling Guide B4-2.1-03, Ineligible Projects
2. Orrick InfoBytes, 2026 FHFA conforming loan limits
3. Fannie Mae Selling Guide forms (1007, 1025, 1076)
4. Statements Ready, DSCR loan down payment
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 Big Can an Interest-Only Super Jumbo DSCR Loan Be? · How Much a Super Jumbo DSCR Loan Lends Above the Standard Ceiling · Super Jumbo DSCR vs Commercial Loan on a Luxury Duplex
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.