The Quick Read: Usually, yes, as long as the property can support a brand-new loan on its own. A super jumbo DSCR loan does not extend or convert the old note. It is a fresh refinance whose proceeds pay the bank’s maturing loan off through title, subject to lender guidelines and underwriting. DSCR (debt service coverage ratio) compares monthly rent to the full monthly payment. The loan is reviewed primarily on property-level rental income covering the payment, plus appraised value and the guarantor’s credit and reserves.
- Size: the standard DSCR program stops at $3,000,000. A separate large-balance ladder runs to $10,000,000, and every request above $4,000,000 is reviewed case by case.
- Leverage: ceilings step down as the loan grows, so a big old payoff can leave a gap you fill with cash.
- Cash-out: none above $3,000,000. Above $4,000,000, only purchase or rate-and-term loans.
- Term: a long-term structure removes the lender-set deadline. A short-term balloon structure just moves it.
Key Terms Defined
Balloon payment: a large lump sum due at the end of a loan’s term, after smaller payments that did not pay the balance down fully.
Portfolio loan (bank sense): a mortgage the originating bank keeps on its own books instead of selling. That lets the bank write its own terms, such as balloons and resets.
Blanket loan: one note secured by several rentals. Lenders also call it a portfolio DSCR loan or a cross-collateralized loan. All three names mean the same thing.
PITIA: principal, interest, taxes, insurance and association dues. DSCR divides monthly rent by this full payment.
Rate-and-term refinance: a refinance that pays off the old balance and costs without taking cash out. Cash-out: a refinance that returns cash to you at payoff.
Guarantor: the person who stands behind a loan made to an LLC. Whether recourse applies varies by structure.
What Do “Portfolio Loan” and “Super Jumbo” Actually Mean?
Neither phrase is regulated. “Portfolio loan” describes where a loan sits, on a bank’s balance sheet. It says nothing about how the loan was underwritten. “Super jumbo” is a lender convention for large balances, not an official category.
The practical point: your loan amount, not the purchase price, picks the rule set. A property bought years ago may carry a balance in one band today and sit in another after a new appraisal.
Do not mix up the two uses of “portfolio.” A bank’s portfolio loan is one the bank keeps. A portfolio DSCR loan is one note secured by several rentals. Lendmire, a mortgage broker, arranges the second kind through wholesale non-QM and DSCR lenders. It does not place bank-held loans. Many investors hold a bank-kept note and want out. The exit is a new loan from a different lender.
How Does the Swap Work, Step by Step?
The swap runs as a normal refinance. The underwriting just ignores the old loan’s history. The lender cares whether this property, today, supports this new loan.
1. Pull the old note. Confirm the maturity date, payoff amount (principal, accrued interest and fees), any prepayment charge, and any guarantee or deposit covenants. Bank loans are often underwritten on you personally. The replacement is tested on the property.
2. Test coverage. Divide monthly rent by the full new payment. At 1.00, rent equals the payment. Your old payment is irrelevant. Our complete DSCR loans guide walks through the formula.
3. Test leverage. The new loan amount must stay under the ceiling for its band, with the appraised value as the base. The next section covers the ladder.
4. Order the appraisals. Two appraisals are required above $2,000,000. For one-to-four-unit rentals, the appraiser’s rent schedule supports the income side.
5. Show reserves and credit. Reserves are typically six months of PITIA on the subject property, or twelve for first-time investors. The credit floor is 660, rising to 700 above $3,000,000.
6. Close through title. Insurance and entity documents get finalized, and title sends the payoff straight to the old lender. Entity vesting is welcome, with no layered entities, subject to lender program eligibility. Lendmire’s piece on vesting requirements for a portfolio operator holding LLC doors covers that step.
One more point from daily practice. A payoff that returns cash to you is generally treated as cash-out. That changes the leverage ceiling and the reserve rules.
How Does Loan Size Change the Answer?
Bigger loans get lower leverage and tighter credit. That is a common reason a payoff does not fit. These are ceilings across select wholesale programs, for investment property at 1.00 coverage or better, subject to underwriting:
| Loan amount band | Purchase | Rate-and-term |
|---|---|---|
| $150K–$1M | 80% | 80% |
| $1M–$1.5M | 75% | 75% |
| $1.5M–$2M | 75% | 75% |
| $2M–$3M | 75% | 75% |
| $3M–$4M | 65% | 65% |
| $4M–$6M | 60% (on review) | 60% (on review) |
| $6M–$10M | 60% (on review) | 60% (on review) |
Credit works differently from the table. The top cell in each band needs a certain score. Up to $1,000,000, the 80% cell needs 660 or better. From $1,000,000 to $1,500,000, the top cell needs 700. From $1,500,000 to $3,000,000, it needs 720. Above $3,000,000, the cells need 700, plus 0x30x24 housing history and 48 months since any credit event. A lower score takes a lower leverage cell in the same band.
Cash-out steps down too on larger loans, with a proceeds cap above 60% leverage. It is not available above $3,000,000. Above $4,000,000, every request is reviewed case by case and limited to purchase or rate-and-term. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Short-term rentals qualify only to $2,000,000. They need 1.00 or higher coverage and documented operating history, counted at 80% of gross. Municipal permission is documented for the specific property, because short-term rental rules can vary by city, county, HOA, and property type. Confirm local rules before relying on projected rental income.
Coverage below 1.00 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting. At the largest sizes, leverage, credit and reserves usually bind before the coverage ratio does.
Run the Numbers: Does the Payoff Fit?
Here is a hypothetical, with percentages only. Say your old bank balance equals 70% of the new appraised value, and the new loan falls in the $2M–$3M band with a 75% ceiling on a rate-and-term refinance. The payoff fits, with cushion equal to 5% of value before closing costs.
Now change one input. The balance is 80% of value, and the ceiling is still 75%. You owe a gap equal to 5% of value, in cash, a partial sale or a second loan.
Push it again. The loan lands in the $3M–$4M band, where the ceiling is 65%. A balance at 70% of value leaves a gap again, even though coverage is fine. An appraisal that comes in short makes every one of these tests harder.
Coverage is the other half. Clearing 1.00 means rent equals the payment. It does not mean positive cash flow after repairs, vacancy and management. A coverage ratio of 1.25 means income can fall 20% before the property reaches 1.00. Running the numbers before you commit shows how thin or thick your cushion is.
A practitioner pattern worth knowing: across our wholesale network, files that stall at a payoff rarely stall on coverage. They stall on a value that came in under the borrower’s expectation, or on a cash gap discovered late. The strongest files get a realistic value read, and a clear plan for any gap, before anyone orders a second appraisal.
What Does the Deadline Put at Risk?
Maturity is a new lending decision. On-time payments do not secure a refinance. The Consumer Financial Protection Bureau describes a balloon as a large one-time payment due at the end of the term. It warns that a refinance may be unavailable if property value or your finances decline.
For market backdrop, the Mortgage Bankers Association reports that 17% of outstanding commercial and multifamily mortgage balances, about $875 billion of $5.0 trillion, are scheduled to mature in a single year. It adds that lenders were no longer simply extending terms. Another MBA Newslink item puts the following year’s maturities at $652 billion. Those figures cover commercial and multifamily debt, not one-to-four-unit investor loans. They show the climate, nothing more.
Costs and Traps
A swap trades one set of constraints for another. Weigh these before you start:
- Leverage: lower at large sizes, as the ladder shows.
- Prepayment charges: check the old note for one, and ask whether the new loan carries its own.
- Recourse: the guarantor stays on the hook, though the details vary by structure.
- Closing costs: a refinance still needs appraisals, title, insurance and a credit review. A loan that is reviewed on rent is not a paperless loan.
- Condition and title problems: unresolved repairs, permits, title or insurance issues can stall a file.
Interest-only helps with cash flow, not with maturity. The program offers a 120-month interest-only period on 30- and 40-year terms, to a 75% ceiling, qualified on interest, taxes, insurance and dues. When that period ends, the payment re-amortizes. That is a payment step-up, not a balloon. Tax treatment varies; consult a qualified professional before relying on any deduction.
What If Several Notes Mature Under One Bank Loan?
A single-property super jumbo loan only fits if each asset can be financed alone. Lendmire arranges two:
| Factor | 30-year portfolio DSCR loan | Rental portfolio term loan |
|---|---|---|
| Properties | 2 to 20 under one note | 5 or more properties or units |
| Loan size | $300K–$5M (larger on review) | $500K–$50M (larger on review) |
| Leverage | Up to 80%, purchase and rate-and-term | Up to 75% |
| Term | 30 years | 3, 5, 7 or 10 years |
| Balloon | None | Yes, at maturity |
| Coverage test | 1.00 on the pooled rents | Pooled, subject to underwriting |
Small multifamily of five or more units is eligible only in the rental portfolio term loan. The term loan comes in recourse and non-recourse versions. A non-recourse loan looks to the real estate, with carve-outs such as fraud and bankruptcy. It also carries yield-maintenance prepayment terms, and properties in several markets may sit under one note. The portfolio programs’ credit floor is 640, and 680 or 720 on some structures.
Pooling lets strong rentals carry weaker ones at entry. When a weaker rental sits in the pool, underwriting tests the pooled coverage, the leverage and the terms. Selling one property out of the pool follows the loan documents. The release price runs above that property’s allocated balance, and the remaining pool must still cover its debt service. Pick the term loan and you have a new balloon. Another refinance waits at the end, and the new lender retests rent and value then.
When Will This Not Work, and What Else Is There?
A super jumbo DSCR refinance is the wrong tool when your plan depends on a refinance landing in a specific window. It is also wrong when your net worth sits in one illiquid asset with little outside cash. Reserves and a gap payment both need liquid money.
| Problem | Likely next step |
|---|---|
| Appraised value too low for the payoff | Bring cash, or pay the old note down first |
| Payoff above the cash-out ceiling | Sell part of the portfolio, or add a second loan |
| Loan above the $3,000,000 standard cap | Large-balance ladder, reviewed case by case above $4,000,000 |
| Short-term rental above $2,000,000 | Re-underwrite on long-term rent, or split the debt |
| Prepayment charge swallows the benefit | Ask the bank about a short extension, then refinance |
| Rent too thin at current leverage | Lower leverage, or use select sub-1.00 programs (LTV and terms adjust) |
Start well before the maturity date. Appraisals, entity documents and a gap plan all take longer than investors expect, and a deadline leaves you few choices.
Frequently Asked Questions
Can a super jumbo DSCR loan extend my existing bank loan?
No. It is a new loan that pays the old one off. You need a new appraisal, title, insurance and credit review. Nothing about the old note carries over, including its history of on-time payments.
What if my old balance is higher than the new loan ceiling?
You cover the difference with cash, a partial sale or another loan. Ceilings step down as balances grow, and cash-out stops above $3,000,000. Compare the old payoff to appraised value times the ceiling for your band before you commit.
Does a DSCR refinance remove the balloon?
Only on a long-term structure. A 30-year portfolio DSCR loan has no balloon. A term loan with a 3-, 5-, 7- or 10-year maturity carries one, so you would refinance again later. Ask which kind of maturity you are getting.
Can I do this if the property is a short-term rental?
Yes, to $2,000,000, with 1.00 or higher coverage and documented operating history counted at 80% of gross, for experienced investors, subject to underwriting. Above that size, the file generally has to qualify another way. Local permission is documented per property.
Do I need traditional personal-income documentation?
The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. You still provide an appraisal, a credit review, reserves, and entity and title documents.
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. Call 828-256-2183 or request a quote. Business-purpose investor financing is arranged across 40 states plus Washington, D.C., and every figure here is subject to underwriting and not a commitment to lend.
Maturity dates are fixed. Appraised value and rent are the two numbers you can still move before one arrives.
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
As a DSCR and non-QM mortgage broker, Lendmire — NMLS# 2371349 — connects investors with wholesale lending channels across 41 markets, including Washington, D.C. The property’s rental income, not the borrower’s tax returns, is central to lender review, which works for self-employed operators and portfolios beyond four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Ask CFPB: What is a balloon payment?
2. Mortgage Bankers Association: commercial and multifamily maturities
3. MBA Newslink: maturities by year
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 Founder’s Super Jumbo DSCR Loan Survives a Market Drawdown · Can You Get a Super Jumbo DSCR Loan on a Luxury Airbnb? · How to Qualify a Luxury Duplex on a Super Jumbo DSCR Loan
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.