The Quick Read: Yes, it can, because “no comps” rarely means zero usable data; it means the appraiser has to widen the search and defend larger adjustments, which puts the value under more scrutiny. The risk is not an automatic decline. The risk is a lower supported value, which lowers leverage, and on a DSCR file the same report also sets the market rent.
- The project gets screened before the unit, so building warrantability and condo review come first.
- Two appraisals are required above $2,000,000, and the lower supported value generally sets the loan, subject to underwriting.
- Value and rent are two separate outputs, and a penthouse can pass one and fail the other.
- Short-term-rental files stop at $2,000,000, so a luxury STR penthouse above that needs a different path.
Think of the file as a valuation problem first and a borrower problem second. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. That is why the appraisal carries so much weight here. Lendmire arranges these loans through select lenders in its wholesale network, and the details below come from how those files actually move. Programs change, and every file is underwritten individually. For the full framework, see the complete DSCR loans guide.
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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 own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
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.
Key Terms Defined
Super jumbo: An industry label for very large loan balances. Lenders set it. No regulator defines it.
DSCR: Debt service coverage ratio. Monthly rent divided by the monthly obligation: principal, interest, taxes, insurance, and any HOA dues.
Comp: A comparable sale used to support a value or a rent opinion.
Rent schedule: The appraiser’s market rent opinion, typically reported on Form 1007 for one-unit properties.
Non-warrantable: A building that fails standard condo project rules, such as heavy investor concentration or active litigation. It is an eligibility label, not a quality judgment.
Desk review and field review: A second valuation. A desk review checks the first report on paper. A field review sends someone to the property.
Why Do Penthouses Break the Normal Comp Model?
Penthouses break the comp model because the best sale is often old, in a different building, or finished to a different standard. Top-floor units differ on view, terrace, ceiling height, private elevator access, and combined floor plans. Few of them trade in any one building.
That leaves the appraiser with the usual fallback steps. The search broadens to dated sales, distant sales, and different property types, and every departure from ideal data has to be well supported. When sales are extremely limited, the cost and income approaches can back up the conclusion.
Agency rules are only a contrast here, because they do not govern DSCR loans. They still show the professional baseline. Under Fannie Mae’s Selling Guide, when no truly comparable sales exist the appraiser picks the best indicators and makes market-supported adjustments. Freddie Mac’s guide adds that large adjustments are typical for unique properties because market activity is limited, and that comps generally come from within 12 months, though older sales may be used. Appraisers work this way whatever the loan type.
What Does the Lender Actually Need? Two Numbers
The lender needs a supported value and a supported rent. They come from the same appraisal but fail for different reasons.
| Number | What it drives | Typical penthouse problem |
|---|---|---|
| Value | Leverage and loan size | Few or dated sales, large adjustments |
| Rent | Coverage ratio | Thin rent comps, high HOA dues |
The value sets how much the file can borrow. The rent, set by the appraiser and not by your own estimate, sets whether coverage clears. HOA dues sit in the denominator, so a high-dues luxury building lowers coverage directly.
A penthouse with a clean value and weak rent still struggles. So does one with strong rent and a soft value. Model both before you commit to a price.
How Does an Appraiser Value a Unit With No Comps?
The appraiser works through a ladder of fallbacks and documents each step. Every step invites scrutiny, which is why large-balance files draw a second valuation.
1. Same building first. Condo comps start inside the complex, then expand to similar projects.
2. Competing luxury towers next. The appraiser widens by distance and by building tier.
3. Older sales with time adjustments. Dated sales come in with larger market-condition adjustments.
4. Feature adjustments. Floor level, view, parking, and finishes are the usual drivers.
5. Cost and income support. When sales run thin, these approaches back up the conclusion.
Contributory value only counts if the market pays for it, and the appraiser must see proof. Receipts, permits, and sale history for your upgrades help the appraiser support the number.
Second Appraisal: What Triggers It and Who Wins?
Loan size triggers the second appraisal, not the warrantability label. Across the wholesale network, loans above $2,000,000 require two appraisals, subject to underwriting. The second valuation may be a desk or field review, depending on the lender. When the two values differ, the lower supported value generally sets the leverage ceiling.
Two appraisers can reach different values on the same unit simply by picking different comps. That is why a penthouse file should arrive with its own comp package.
Here is the leverage ladder by loan band. These are ceilings through select wholesale programs, subject to underwriting.
| Loan band | Purchase | Rate-term | Cash-out |
|---|---|---|---|
| $150K–$1M | 80% | 80% | 75% |
| $1M–$1.5M | 75% | 75% | 70% |
| $1.5M–$2M | 75% | 75% | 60% |
| $2M–$3M | 75% | 75% | 60% |
| $3M–$4M | 65% | 65% | — |
| $4M–$6M | 60% on review | 60% on review | — |
| $6M–$10M | 60% on review | 60% on review | — |
The bands are loan amounts, not purchase prices. Work out price times leverage first, then read the band for that loan. The top cell in each band also needs a minimum credit score: 660 or better at the first band, 700 or better through $1.5M, and 720 or better from $1.5M to $3M. The program floor is 660 on loans to $3,000,000 and 700 above it. Above $4,000,000 every request is reviewed case by case before submission, purchase or rate-and-term only.
A small value change can push a file across a band line. A lower appraisal on a purchase near $2,000,000 in loan size can change both leverage and the second-valuation requirement. Test both sides of each line.
How Is Rent Set When There Is No Rent Comp?
Rent comes from the appraiser’s market rent opinion, and when no clean rent comp exists the appraiser works down a ranked list. The strongest evidence goes first.
1. Signed lease on the subject. A current lease at market terms is the best support.
2. Same-building rentals. Other units in the tower, adjusted for floor and finish.
3. Competing luxury buildings. Similar rental towers in the same submarket.
4. Broader adjusted comps. Lower-tier units with explicit adjustments.
The ratio is rent over principal, interest, taxes, insurance, and any HOA dues. Many programs tie it to the appraiser’s stated rent, so your own estimate does not carry the file. Bring lease evidence anyway. It gives the appraiser something concrete to weigh.
Rent-to-Price Compression: The Quiet Failure Point
Luxury units commonly fail coverage because price runs far ahead of rent. A penthouse can have a strong value story and still not cover its monthly obligation.
Run the numbers this way, with modeled assumptions and not market data. Say a penthouse is priced at $3,500,000 and the purchase is financed at 65%, which puts the loan in the $2M–$3M loan band. Coverage depends on whether the appraiser’s rent supports the full payment plus dues. At luxury price points that ratio often lands well below 1.00 on long-term rent alone.
When that happens, the options a lender would review include:
- A lower loan amount, which means more cash in.
- A select program that allows coverage from 0.75 to 0.99 at reduced leverage. LTV and terms adjust, subject to underwriting. This path runs to $2,000,000 in loan size only.
- Interest-only, with a 120-month period on 30- and 40-year terms, 75% maximum, with coverage of 0.75 or better qualified on interest, taxes, and insurance. Subject to underwriting.
- A different property or price point.
Above $2,000,000, coverage generally needs to clear the 1.00 benchmark. Clearing 1.00 also does not mean the property cash-flows. The ratio compares rent to the payment only. Vacancy, repairs, and management sit outside it.
Short-term rentals are a partial answer. They qualify on documented operating history, or on the appraisal’s short-term-rent analysis on a purchase, at 80% of gross, for experienced investors only, to $2,000,000. 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.
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.
Building and HOA Gates
The building gets screened before the unit. For a penthouse, a problem in the project can sink a clean unit.
| Check | Why it matters |
|---|---|
| Owner-occupancy share | Heavy investor concentration can make a project non-warrantable |
| HOA litigation | Active suits raise lender concern |
| Reserve levels | Thin reserves signal special-assessment risk |
| HOA dues | They sit in the coverage denominator |
| Rental restrictions | They can limit the rent you can underwrite |
Scotsman Guide lists occupancy, litigation, and reserves as the usual warrantability factors and notes that lenders differ. DSCR programs generally run their own project review and are not tied to agency condo definitions. In the wholesale network, warrantable and non-warrantable condos both have a path. Non-warrantable condos run to 75% and $1,500,000 on select programs, so a larger penthouse in a non-warrantable building needs a different structure or a different building. Condotels carry their own limits.
Is DSCR the Right Lane?
DSCR fits an investor who wants the property’s rent to carry the file, not traditional personal-income documentation. It does not fit someone who plans to live in the unit. These are business-purpose investor loans, reviewed differently from a standard owner-occupied mortgage.
| Path | Best for | Main friction |
|---|---|---|
| DSCR | Investor, rent-driven file | Rent and value must both hold |
| Full-doc jumbo | Strong documented income | Personal income review |
| Asset-based | Large liquid holdings | Different qualifying test |
Other Lendmire coverage addresses borrowers who qualify differently. If your profile is asset-heavy, read Lendmire’s piece on whether a founder can get a super jumbo loan on assets and no income. If you have no current income, there is a separate guide on getting a super jumbo loan with no current income.
Credit, reserves, and entity structure matter too. Reserves are typically 6 months of the full payment on the subject property, or 12 for first-time investors. Cash-out never satisfies reserves. Entity vesting is welcome, with no layered entities. Tax treatment varies; consult a qualified professional.
If the Value Comes In Low
A low value does not end the file. It changes the gap, and you choose how to fill it.
On a purchase, the options are a seller price cut, more cash from the buyer, or a restructured deal. A reconsideration of value is also possible. You or your agent can submit stronger comps through the lender, though it may not change the result. Strong packages usually include same-building sales, competing tower sales, and documented upgrades.
If a value change moves the loan into a lower leverage band, redo the coverage math before you respond.
Pre-Contract Checklist for a Penthouse
1. Pull the sale history for the building and for the two or three closest luxury towers.
2. Gather receipts and permits for any upgrades and renovations.
3. Collect rent evidence: a signed lease, or rentals in the building and nearby towers.
4. Get the HOA dues, budget, and reserve information early.
5. Ask the building about owner-occupancy share, litigation, and rental rules.
6. Model coverage at the appraiser’s likely rent, not your hoped-for rent.
7. Check what could be built nearby. Zoning and air rights can erode a view premium.
8. Test the loan on both sides of each size line before you set an offer.
Off-market sales that never reach MLS data can’t be used as comps, so don’t expect a private trade to carry the value.
Frequently Asked Questions
Can a penthouse get a DSCR loan?
Yes, when the building passes the lender’s project review and the file clears coverage. Warrantable and non-warrantable condos both have a path in the network, with non-warrantable limited to 75% and $1,500,000 on select programs. Everything stays subject to underwriting.
Do I need two appraisals?
Above $2,000,000 in loan amount, yes. The lower supported value generally governs leverage.
What if there are truly no comps?
The appraiser widens the search by time, distance, and property type, then supports the adjustments and may lean on cost and income approaches. The usual result is a more conservative value, not an automatic denial.
Can I use my own value or rent estimate?
No. The appraiser’s conclusion drives both value and market rent. Your lease evidence and comp package can support the appraiser’s work.
Can I live in the penthouse?
Not on a DSCR loan. These are business-purpose financing for investment properties, so owner occupancy points you to a different loan type.
Can a luxury short-term-rental penthouse go above $2,000,000?
Not on the short-term-rental track, which stops at $2,000,000. A larger file would need a different qualifying path.
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, subject to lender guidelines and underwriting. This is not a commitment to lend.
Penthouse values hinge on a handful of sales, so the investors who do best are the ones who arrive with the comp package already built.
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 traditional personal-income documentation, 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. Fannie Mae Selling Guide B4-1.3-09: Adjustments to Comparable Sales
2. Freddie Mac Guide Section 5605.7
3. Scotsman Guide: Get in the Game
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: Can You Get a Super Jumbo DSCR Loan on an Estate on Acreage? · Can a Co-Signer Help You Qualify for a Super Jumbo DSCR Loan? · How to Document a Lease to Your Parents on a Super Jumbo DSCR Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.