The Quick Read: On a Beverly Hills rental, the loan is the smallest of three numbers: what the leverage ladder allows, what the rent can carry, and the program’s dollar ceiling. At luxury prices, the rent test usually binds first. Nothing here is a quote or a commitment to lend, and every figure is subject to underwriting.
- Leverage steps down as the loan grows: 80% on a purchase to $1,000,000, then 75% to $3,000,000, 65% to $4,000,000, and 60% above that on review.
- Rent must cover the full monthly obligation, and coverage of 1.00 earns full leverage.
- Cash-out shrinks fast and stops above $3,000,000.
- Two appraisals are required above $2,000,000.
- Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines.
What Does “Super Jumbo” Actually Mean?
“Super jumbo” is a lender label, not a regulated tier. No agency draws that line. The only official dollar marker is the conforming limit, which HousingWire reports at $832,750 for the one-unit baseline and $1,249,125 for the high-cost ceiling.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Nov 5, 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 Nov 5, 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.
Those limits are a naming reference only. A DSCR loan is a business-purpose investor loan, so they do not cap or size it. Across our wholesale network, “super jumbo” generally means balances above $3,000,000, where the standard program stops and an added overlay begins. Above $4,000,000, every request is also reviewed case by case before submission.
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.
Key Terms Defined
- DSCR (debt service coverage ratio): monthly rent divided by the full monthly property obligation.
- PITIA: principal, interest, taxes, insurance, and any HOA dues. On interest-only loans, lenders test ITIA instead, which drops the principal.
- LTV (loan-to-value): the loan as a percentage of appraised value or price, whichever is lower.
- Super jumbo: a lender-defined label for very large balances.
- Case-by-case review: a look at the whole file before submission, used for the largest balances.
- No-ratio: a path where no minimum coverage ratio is tested, available only through select programs.
The Three Limits That Set Your Number
Your loan is the lowest result of three tests. Most borrowers watch only the first.
| Limit | What it tests | What moves it |
|---|---|---|
| Leverage | LTV on value or price | Loan band, transaction type |
| Coverage | Rent vs. full payment | Rent, down payment, structure |
| Program ceiling | Dollar maximum | Program, property type |
The two financing limits depend on each other. A bigger loan raises the payment. A bigger payment lowers coverage. So you can’t read a high LTV cap and assume a loan at that cap will pencil.
The Size Ladder
Leverage steps down as the loan grows. These are ceilings through select wholesale programs on a DSCR of 1.00 or higher, 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. Multiply price by leverage first, then read the band that loan lands in. That is why a lower loan can sit in a more generous band.
On credit, the top cell in each band needs a certain score. The 80% cell needs 660 or better. Above $1,000,000 the top cell needs 700, and from $1.5M to $3M it needs 720. Above $3,000,000 the top cells need 700 again. The program floor is 660 on loans to $3,000,000 and 700 above that. A lower score takes a lower leverage cell inside the same band.
Above $3,000,000, the overlay adds more conditions:
- 0x30x24 housing history.
- 48-month event seasoning.
- Citizens and permanent residents only.
- No rural property, and no more than ten acres on a non-rural one.
Why Beverly Hills Rent Usually Decides First
Luxury rentals pay little rent against their value. Zillow shows a typical Beverly Hills home value of $3,686,749 against an average rent of $4,314. That rent blends property types and leans toward apartments, so it is not a single-family comp, and the home value is a modeled estimate. The gap still shows the pattern: yearly rent is a small share of price.
Run the method on a modeled property. Say the price sits in the $7,000,000 range and you borrow at the top leverage the ladder allows on review. A loan that size carries a large payment against a modest rent. Coverage often lands below 1.00 before the leverage cap ever matters.
Strong leverage on paper doesn’t mean a loan at that leverage clears the rent test.
Worked Example: Two Passes
Use modeled inputs, not market data. Assume a $7,000,000 purchase with rent that is a modest share of price, as in the luxury pattern above.
Pass one. Start at the ladder. At 60% of price, the loan lands in the $4M–$6M band, where 60% applies on review. Build the full PITIA on that loan. Divide rent by it. If coverage comes in under 1.00, the leverage cap was never the binding limit.
Pass two. Lower the loan. At a smaller balance the payment drops and coverage rises. Once the loan falls under the $4,000,000 line, which here means below about 57% of price, it moves into the $3M–$4M band, where 65% is the ceiling and case-by-case review is no longer the gate. You raise your down payment until rent clears the floor.
The result is the loan that survives both tests. Often that is well below the leverage ceiling.
How to Back-Solve From Rent
Reverse the math to find the loan rent can support:
1. Take the rent the lender will credit.
2. Divide it by the coverage you need, such as 1.00.
3. That is the largest full payment the property can carry.
4. Back out taxes, insurance, and HOA to find what is left for principal and interest.
5. Size the loan to that payment, then check the leverage band.
Tests run on the payment after any interest-only period ends if the program requires it. Check which structure the lender tests.
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.
Which Rent Counts?
The appraiser sets market rent, not you. For 2–4 units, the rent analysis sits in a different appraisal form.
An above-market lease doesn’t raise the loan. A staged or furnished listing doesn’t either, unless the appraiser’s schedule supports it.
Short-term rentals work differently. DSCR programs set their own rules. Through select programs, short-term-rental files need coverage of 1.00 or higher, run to $2,000,000, and use income at 80% of gross. Experienced investors only. 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.
What If Coverage Falls Short?
You have real options, each trading equity or cost for coverage.
- Put more down. The cleanest fix, and it often drops the loan into a better band.
- Use interest-only. Programs allow a 120-month interest-only period on 30- and 40-year terms, to 75% leverage, with coverage of 0.75 or better, qualified on ITIA.
- Go below 1.00. Coverage from 0.75 to 0.99 is a real path through select programs to $2,000,000. LTV and terms adjust, subject to underwriting.
- Use no-ratio. Through a handful of lenders in the network, no-ratio reaches $2,000,000 with a seven-year clean housing history and 0x30x24, within set LTV, credit, and reserve limits, subject to underwriting.
- Look at a traditional jumbo. Personal income and debt-to-income decide that loan, so it suits a different borrower.
DSCR files ignore personal income because qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Credit still matters.
Cash-Out at This Size
Cash-out is tighter than purchase at every step. Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above 60%. There is no cash-out above $3,000,000, and none for borrowers at 680 and below once the loan passes $1,500,000. If you own a luxury rental and want equity, plan on a rate-and-term refinance or a balance under the line. Lendmire’s piece on what closing costs look like on a luxury rental covers the closing side of these files. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Reserves, Appraisals, and Vesting
Reserves are six months of PITIA on the subject property, or ITIA on interest-only. First-time investors need twelve. There are no extra reserves for other financed properties, and cash-out proceeds never satisfy reserves.
Above $2,000,000, expect two appraisals. Above $4,000,000, every request is reviewed case by case before submission, on purchase or rate-and-term only.
Entity vesting is welcome, subject to program eligibility, with no layered entities. An LLC or trust changes paperwork, not loan size. Property can be one to four units, including condos. Non-warrantable condos run to 75% and $1,500,000.
For the bigger picture, our complete DSCR loans guide covers the basics.
Frequently Asked Questions
What is the maximum a super jumbo DSCR loan can reach?
Through select wholesale programs, up to $10,000,000, subject to underwriting. Above $4,000,000, every request gets case-by-case review, so 60% is a figure on review, not a flat promise. Short-term-rental and no-ratio files stop at $2,000,000.
Does the conforming loan limit cap a DSCR loan?
No. Conforming limits apply to agency loans. A DSCR loan is a non-agency, business-purpose product, so those figures serve only as a naming reference.
Do I need tax returns or W-2s?
Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, reserves, and appraisals still apply.
Can I take cash out of a Beverly Hills rental?
Yes, within limits. Cash-out runs 75% to $1,000,000, 70% to $1,500,000, and 60% to $3,000,000, with none above $3,000,000. Proceeds above 60% LTV are capped at $1,500,000. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Why does a high price make coverage harder?
Rent doesn’t rise as fast as value. When yearly rent is a small share of price, a large loan produces a payment rent can’t cover. More equity or a smaller loan fixes that.
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. Tax treatment varies; consult a qualified professional.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. HousingWire, conforming loan limit
2. Zillow, Beverly Hills home values and rent
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 Lenders Underwrite a Super Jumbo DSCR Cash-Out Refinance on Below-Market Rental · Super Jumbo DSCR Cash-Out Refinance vs Portfolio DSCR Loan Requiring a Rent Roll
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.