The Quick Read: On a paid-off home, the loan is the lowest of three limits: the leverage ceiling for that loan size, the program’s dollar ceiling, and the payment your deposits support. With no mortgage to pay off, the leverage ceiling usually decides the answer. All figures here are ceilings through select wholesale programs, subject to full underwriting.
- On a primary residence, the cash-out ceiling steps down from 80% on loans to $1,500,000 to 55% between $5,000,000 and $6,000,000. Everything above $4,000,000 is reviewed case by case.
- A paid-off home has a payoff of zero. The ceiling times the appraised value is the most the loan can be, before costs.
- The portfolio program caps cash in hand at $1,500,000 when the loan exceeds 60% of value.
- Income comes from 12 or 24 months of eligible deposits, after an expense ratio.
- Investment properties and second homes use their own, lower ladders.
What Does a Paid-Off Home Change?
It removes one subtraction. On a financed home, the lender takes the leverage ceiling times value, then subtracts the existing balance. On a free-and-clear home, nothing is subtracted, so the new loan becomes the only lien.
That sounds like unlimited borrowing. It is not. A paid-off home at a 65% ceiling still leaves 35% of its value unborrowed. The ceiling falls as the loan grows, and your income has to carry the payment.
Super jumbo has no official definition. It is a lender-defined size tier. Across our wholesale network, the overlays that change underwriting begin above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Two wholesale programs sit behind the range. The first is a portfolio non-QM bank statement program. It covers loans from $300,000 to $6,000,000 on 12 or 24 months of statements. The second is a bank portfolio jumbo program. Its ladder begins above $4,000,000 on a primary residence, overlaps the first program to $6,000,000, and runs alone to $30,000,000. It uses 12 months of statements.
How Underwriting Treats It, Step by Step
Bank statement does not mean undocumented. Credit, assets, title, the property and an appraisal are all still verified. Here is the order in which a file gets sized.
1. Value. The appraisal sets the base. Current appraised value governs, not what you paid.
2. Loan size band. The size of the loan, not the price of the home, picks the leverage tier. A bigger loan means a lower ceiling.
3. Occupancy and purpose. Primary home, second home and investment property each have their own ladder. Cash-out always sits at or below purchase.
4. Income. The lender adds up eligible deposits and removes transfers between your own accounts. For business accounts it applies an expense ratio, then divides by the statement months.
5. Payment test. The resulting income has to support the payment within a debt-to-income limit of up to 50%.
6. Reserves. Typically 3 months of payments to $500,000, 6 months to $1,500,000 and 9 months above that.
7. Overlays. Above the super jumbo line, additional rules apply (more on these below).
Compute price times leverage first, then read the band for the resulting loan. Reading the band for the price is a common mistake.
The Ladder: How Much of the Value You Can Borrow
The table shows primary residence leverage ceilings by loan size, through select wholesale programs, subject to full underwriting. Take every figure from the occupancy’s own ladder. Never subtract points from the primary figure to guess at another occupancy.
| Loan size band | Cash-out | Purchase | Program |
|---|---|---|---|
| $300K–$1M | 80% | 90% | Portfolio non-QM |
| $1M–$1.5M | 80% | 85% | Portfolio non-QM |
| $1.5M–$2M | 75% | 85% | Portfolio non-QM |
| $2M–$2.5M | 70% | 80% | Portfolio non-QM |
| $2.5M–$3M | 70% | 80% | Portfolio non-QM |
| $3M–$3.5M | 65% | 75% | Portfolio non-QM |
| $3.5M–$4M | 65% | 75% | Portfolio, super jumbo overlays |
| $4M–$5M | 60% | 65% | Bank portfolio, on review |
| $5M–$6M | 55% | 60% | Bank portfolio, on review |
| $6M–$10M | 55% | 60% | Bank portfolio, on review |
| $10M–$20M | 50% | 55% | Bank portfolio, on review |
| $20M–$30M | 50% | 55% | Bank portfolio, on review |
Credit scores matter in a specific way. The top cell in each band needs a certain score. It is not a program floor. Up to $1,000,000, the top cell needs 680 or better. From $1,000,000 to $1,500,000 it needs 700. From $1,500,000 to $3,500,000 it needs 720. Between $3,500,000 and $4,000,000 it needs 760.
A lower score takes a lower leverage cell in the same band. The actual floors are 660 on the portfolio program, 700 above the super jumbo line, and 680 at every size on the bank portfolio program.
Notice that the best cell steps down when the bank program takes over. The bank program also publishes its own ladder, so check the band rather than assuming a trend.
Every figure above $4,000,000 is reviewed case by case before submission. Treat those cells as starting points for a conversation.
A Worked Example: Same Home, Two Limits
These are modeled assumptions, not market data. Say you own a primary residence appraised at $3,000,000, with no mortgage. At the 70% cash-out ceiling, the loan sizes inside the $2,000,000 to $2,500,000 band. That band does allow 70% on cash-out, so the ceiling holds. Costs and prepaids come off the proceeds. The portfolio program places no cap on proceeds at or below 60% of value, but at 70% the $1,500,000 cash-in-hand cap applies. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Now run a $6,000,000 appraisal. At 65%, the loan lands in the $3,500,000 to $4,000,000 band. That band allows 65% on cash-out for a score of 760 or better. The super jumbo overlays apply, so cash-out proceeds cannot satisfy your reserves. You would need the 9 months of reserves from other liquid assets. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The cash-in-hand cap matters here. Above 60% of value, the portfolio program limits cash to $1,500,000. On a home this size, the cap, not the percentage, becomes the binding limit. Dropping to 60% or below removes it. The bank program publishes no such cap, but it requires 12 months of statements and reviews every file individually.
How Deposits Become the Limit
Leverage sets the ceiling, but income can set a lower one. The lender uses 12 or 24 consecutive months of personal or business statements. The bank program uses 12. Transaction histories never substitute for statements.
Personal-account deposits count in full. Transfers from your own business into your personal account count at 100%. Business statements need at least 25% ownership. Then comes the expense ratio, which most programs we place files with set as follows:
- 20% for a service business with no employees
- 40% for a business with 1 to 5 employees
- 50% for 6 or more employees, or any product business
- An accountant-provided ratio, which may differ
- A profit-and-loss method, capped at 80%
The 50% figure is a common default, not a rule. A letter from your accountant can change it.
The window you choose matters too. A 12-month window reflects a recent, possibly stronger trend. A 24-month window smooths seasonality but can pull the average down. Run both and see which one the file favors.
If deposits do not carry the file, two asset paths exist. An asset allowance divides liquid assets by 36, 60 or 84 months. It applies to primary and second homes at 80% maximum. Assets-only qualifies with no debt-to-income calculation when U.S. liquid assets equal the loan plus closing costs. Retirement accounts count at 70%, or 80% at age 59½ and over. Business funds, gifts, unvested stock and cryptocurrency never count.
Interest-Only Does Not Raise the Cash-Out Limit
Interest-only is a payment structure. It can help the income test, but it never lifts a cash-out ceiling. The portfolio program offers interest-only to 85% on purchase and rate-and-term files with a 700 floor. The bank program offers it at 60% or the band’s ceiling, whichever is lower. Neither changes the cash-out column in the table.
Where the General Rule Breaks
Rural property. Leverage goes up to 80% on ten acres or less, never on loans above $3,000,000. Above the super jumbo line, rural property is excluded.
Texas home-equity loans. A Texas 50(a)(6) loan takes a 5-point leverage reduction and stops at $3,000,000 on the portfolio program.
Condos and units. Warrantable condos run to 85%, non-warrantable to 80%, and condotels 75% on purchase and 65% on cash-out. Two to four units can run to 85%. Second homes are one unit only.
Super jumbo overlays. Above $3,500,000 on a primary residence, expect 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. No non-occupant co-borrowers and no rural property.
Vesting. Non-QM jumbo more naturally lets a trust or an LLC sit as the named borrower, subject to program terms.
Equity is not income. A large paid-off home does not substitute for qualifying income. The lender still has to see the payment supported.
Primary Home vs. Investment Property
An investment property takes a lower ladder. At $2,500,000 to $3,000,000, the cash-out ceiling is 60% on an investment property, against 70% on a primary residence. From $3,000,000 to $4,000,000 it is 55%. Above $4,000,000 the portfolio program’s 55% is on review.
Investment-property loans are designed for non-owner-occupied properties. Because they are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage.
If you are an owner whose returns understate cash flow, bank statements let your deposits carry the file. If the property rents well, a rental-income route may fit better. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers that path.
A paid-off rental is also a source of acquisition capital. With no payoff, nearly the full ceiling becomes proceeds, minus costs. The new payment is real, so you must qualify on it. Tax treatment varies; consult a qualified professional.
If conventional income documentation works for you, a conventional cash-out probably costs less. Bank statement programs earn their place when your returns understate your cash flow.
Where the Conforming Limit Fits
It mostly does not. The FHFA set the baseline conforming limit for one-unit properties at $832,750 in most of the country. High-cost areas reach $1,249,125, which is 150 percent of the baseline. That limit decides only what the government-sponsored enterprises may buy. It is not a cap on non-QM loans.
The federal ability-to-repay rule requires a reasonable and good faith determination that you can repay a covered consumer loan. It sets no dollar cap, which is why ceilings vary from lender to lender. For a closer look at how a similar file sizes after a liquidity event, see Lendmire’s piece How Much a Super Jumbo Bank Statement Loan Lends a Founder After a Sale. For the lender-lane comparison, see Lendmire’s piece Jumbo Cash-Out vs Bank Statement Jumbo on a Paid-Off High-Value Home.
Key Terms Defined
Super jumbo: A loan large enough that lenders apply extra overlays. The line is set by lenders, not by law.
Cash-out ceiling: The highest share of appraised value a new loan can reach on a cash-out refinance.
Expense ratio: The share of business deposits treated as costs, removed before income is calculated.
Cash-in-hand cap: A dollar limit on proceeds paid to you, which applies on the portfolio program above 60% of value.
Reserves: Liquid assets, counted in months of payments, that you hold after closing.
Seasoning: The waiting period after a credit event before a lender will consider you again.
Frequently Asked Questions
Can I borrow against a home I own outright?
Yes, subject to the leverage ceiling for the loan size and your qualifying income. The lien is the new loan alone. Closing costs and prepaids still come off the proceeds.
What limits how much I can borrow?
The lowest of the leverage ceiling, the program’s dollar ceiling and the payment your qualifying income supports. On a paid-off home, the leverage ceiling usually binds first.
Does my income or my home’s value matter more?
Both. Value sets the ceiling and income sets what you can carry. Equity alone does not prove you can pay.
How much cash will I actually receive?
Less than the loan. Costs come off, and on the portfolio program, cash in hand is capped at $1,500,000 above 60% of value. Above $3,500,000 on a primary residence, proceeds also cannot count toward reserves.
Is there a hard maximum?
Programs in our network reach $30,000,000, but only on the bank program’s ladder. Anything above $4,000,000 is reviewed case by case before submission.
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. Lendmire is a broker that places files with wholesale programs, and its consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Programs change, and nothing here is a commitment to lend.
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. FHFA conforming loan limits announcement
2. Calculated Risk on the FHFA baseline
3. CFPB Regulation Z ability-to-repay rule
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 to Get a Super Jumbo Bank Statement Loan Without Selling Stock · Can You Get a Super Jumbo Loan on a Second Home? · How to Document a Super Jumbo Bank Statement Loan as a Practice Owner
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.