The Quick Read: On a home with an accessory dwelling unit (ADU), the lender reviews income from documented bank deposits rather than tax returns, then sizes the cash-out from the appraised value. The ADU helps only when it is legal, permitted and supported by the appraisal, subject to lender guidelines. Through select wholesale programs, loan size and occupancy set the leverage ceiling, not the ADU.
- Income comes from 12 or 24 months of consecutive bank statements, after an expense ratio on business accounts.
- The ADU is a property and appraisal question first. It is an income question second.
- Cash-out leverage on a primary residence generally lowers as the loan grows, though some bands hold flat, and every loan above $4,000,000 is reviewed case by case before submission.
- Super-jumbo overlays begin at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
- Cash-out proceeds cannot satisfy reserves on files above those lines.
What Makes a Loan Super Jumbo, and Does an ADU Change That?
An ADU does not change the loan-size line. Super jumbo is an industry label, not a federal category, and every program draws it differently. Across the wholesale network Lendmire works with, loan amounts run from $300,000 to $30,000,000 through two program types. A portfolio non-QM bank statement program carries files to $6,000,000.
The overlays that make a file super jumbo start at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Past those lines, most programs want a 700 credit score, a clean housing history and 48 months of seasoning after any credit event. They also want U.S. citizens or permanent residents, no non-occupant co-borrowers, no rural property and a maximum of ten acres. Above $4,000,000, everything is reviewed case by case before submission, so any figure at that size is a starting point for that review, not a promise.
An ADU matters at this size for one reason. It changes what the appraiser sees and how the file is classified, and those two things move the numbers.
How Does Underwriting Treat an ADU?
Underwriting treats an ADU as part of the collateral. It counts toward value only when the unit is legal, permitted and backed by the appraisal. A unit that is unpermitted, or that the appraiser cannot support with comparable sales, may be excluded from value, from income, or from both. Plan on that outcome until the appraisal says otherwise.
Appraisers look at specific features. Fannie Mae’s ADU income sheet defines an ADU as an additional living area independent of the primary dwelling, with living, sleeping, cooking and bathroom facilities on the same parcel. A unit with its own entrance, kitchen, bath and metered utilities reads as a real dwelling. A converted garage with a hot plate does not.
Comparable sales are the usual weak spot. Freddie Mac’s ADU FAQ says an appraiser may reflect no value for an ADU when comparable data shows no market reaction to it, and that ignoring the unit for lack of comps is not acceptable on its own. Those are agency documents, so read them as context for how appraisers think, not as the terms of a non-QM file. The practical point holds: homes with ADUs sell less often than plain single-family homes, so the appraiser may lean on limited comps and adjust conservatively. A file with an ADU benefits from a prepared package: permits, a certificate of occupancy or final inspection where one exists, and photos showing the separate entrance and kitchen.
Classification is the second issue. A home with one ADU can read as a single-family home with an accessory unit, or as a two-unit property. The appraiser’s call carries into program eligibility. Second homes are one-unit only in the network’s programs, so a property classified as two units stops fitting that occupancy. Two-to-four unit properties are available up to 85% leverage through select programs, but they follow their own ladder and their own appraisal form. Ask how the unit will be classified before you order the appraisal, not after. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
How Is Bank Statement Income Calculated?
Qualifying income is eligible deposits, divided by the number of statement months, after an expense ratio. This applies the same way whether the property has an ADU or not. The steps below follow how most programs in the network work.
1. Choose the statement type. Use 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12. Statements must be consecutive, and a transaction history never substitutes for them.
2. Scrub the deposits. The lender removes transfers between your own accounts, loan proceeds, gifts and unexplained large deposits. Only deposits that read as income remain.
3. Apply the expense ratio on business accounts. Business statements need at least 25% ownership. Common fixed ratios are 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio or a profit-and-loss method, capped at 80%, can replace the fixed ratio.
4. Count owner transfers in full. Transfers from your own business into your personal account count at 100%. A personal-account file avoids the expense step, but it needs clean deposit history with no commingling.
5. Run the debt-to-income test. The ratio can reach 50%, subject to lender guidelines. Qualifying income divides into the full obligation, including the new payment and other debts.
The expense ratio is set by the program, not chosen by the borrower. That is why the same deposits can produce different income under different programs, and why a broker shopping several programs matters on a file at this size.
Can ADU Rent Help You Qualify?
Treat ADU rent as supporting evidence rather than extra income. Under a bank statement program, income comes from deposits. If a tenant pays rent into the account you submit, those deposits are already in the statements, and they must be documented as rent, not as business income. Counting the same dollars twice is the mistake to avoid. How a program treats ADU rent beyond that varies, and it is reviewed before submission.
Many online answers on this question come from agency rules, and those do not carry over. Agency loans apply lease-based income caps and comparable-rental conditions to ADU income. Non-QM programs are underwritten to each program’s own guidelines instead. Do not assume either a cap or an allowance. Ask the program.
A lease, proof of rent deposits and a letter of explanation for any gap in occupancy help. They let the underwriter see why a deposit appeared, which keeps it in qualifying income instead of getting scrubbed out.
How Is the Maximum Cash-Out Set?
Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
The cash-out ceiling is the lowest result of several tests: the leverage ladder, the cash-out cap, the appraised value and your reserves. Start with the ladder. The table shows the cash-out ceiling on a primary residence, by loan band, through select wholesale programs, subject to underwriting.
| Loan band | Cash-out ceiling (primary residence) | Program |
|---|---|---|
| $300K–$1M | 80% | Portfolio non-QM |
| $1M–$1.5M | 80% | Portfolio non-QM |
| $1.5M–$2M | 75% | Portfolio non-QM |
| $2M–$2.5M | 70% | Portfolio non-QM |
| $2.5M–$3M | 70% | Portfolio non-QM |
| $3M–$3.5M | 65% | Portfolio non-QM |
| $3.5M–$4M | 65% | Portfolio, super-jumbo overlays |
| $4M–$5M | 60% | Bank portfolio, case by case |
| $5M–$6M | 55% | Bank portfolio, case by case |
| $6M–$10M | 55% | Bank portfolio, case by case |
| $10M–$20M | 50% | Bank portfolio, case by case |
| $20M–$30M | 50% | Bank portfolio, case by case |
Read the table in two steps. The bands are loan amounts, never property values. Multiply your value by the leverage you want, find the loan size that results, then read the band for that loan. The top cell in each band needs a stronger credit score: 680 or higher at the top of the first band, 700 or higher in the second, and 720 or higher from $1.5M through $3.5M. At $3.5M to $4M the top cell needs 760, and the bank portfolio bands keep that program’s 680 floor. A lower score takes a lower cell inside the same band. Everything above $4,000,000 stays on review.
The bank portfolio program’s leverage limits do not follow a single pattern as loan size grows, so do not assume they fall steadily with size. Take each band’s own figure.
Occupancy changes the ladder. Second homes and investment properties have their own ladders, and they do not follow the primary ladder by a fixed subtraction. On an investment property, for example, the cash-out ceiling is 75% in the bands from $1,000,000 to $2,000,000 and 75% from $300,000 to $1,000,000. Take every figure from the occupancy’s own ladder.
Two cash-out caps apply on top. Proceeds are unlimited at or below 60% LTV. On the portfolio program, cash in hand is capped at $1,500,000 when leverage goes above 60%. The bank program publishes no cap. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
How the ADU moves the result. Consider a primary residence the appraiser values at $3,000,000 with the ADU credited. A cash-out request at 70% puts the new loan in the $2,000,000 to $2,500,000 band, where 70% is the ceiling and the top cell needs 720 or higher. Now suppose the appraiser excludes the ADU and the value drops. The same request produces a smaller loan that lands in a lower band, and the ceiling there is higher, at 75% in the $1.5M to $2M band. The percentage does not shrink. The proceeds do. A value shortfall hits the cash you receive, which is why the ADU’s treatment in the appraisal is the biggest variable on this file.
What About Credit, Reserves and Seasoning?
Credit and reserves rise with size. The floor on the portfolio program is 660, with 700 above the super-jumbo line. The bank portfolio program keeps its own 680 floor at every size. Debt-to-income can reach 50%.
Reserves run 3 months of the new payment up to a $500,000 loan, 6 months to $1,500,000, and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors need 12 months.
Above the super-jumbo lines, cash-out proceeds cannot satisfy reserves. Reserves must sit in separate, documented funds. Recent deposits need a paper trail. Seasoning on cash-out after a recent purchase is set by each program, so confirm it before you plan the refinance.
Where Does the General Rule Break?
Unpermitted or illegal ADU. Value and income can both be excluded. Some jurisdictions have legalization paths, but those rules are local, and the lender will not count the unit until the permits exist.
Multiple ADUs. Non-QM treatment varies, and some programs are more conservative on collateral with more than one accessory unit. Confirm before you order the appraisal.
Second home with an ADU. Second homes are one-unit only. If the appraiser classifies the property as two units, the second-home ladder no longer fits.
Rural or acreage property. Rural property is limited to 80% on ten acres or less, and the program sets its own loan-amount cap, so confirm it before you plan.
Texas home-equity loans. A Texas 50(a)(6) loan takes a 5-point LTV reduction and stops at $3,000,000 on the portfolio program.
Cash-out used to build the ADU. Equity can fund construction, and the unit then counts only if the appraisal supports it. Appraised value may not track construction cost, so size the draw with that gap in mind. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Investment property with an ADU. DSCR loans are designed for non-owner-occupied investment properties. A bank statement loan on your own home is still a personal-purpose loan. The loan’s purpose, not just the property, drives the path.
Bank Statement, DSCR or Asset Path?
The right path depends on what you can document best. The same property can pencil differently on each one.
| Path | Reviewed on | Fits when |
|---|---|---|
| Bank statement | Deposits after expense ratio | Self-employed, tax returns understate income |
| DSCR | Property rent covering the payment | Non-owner-occupied rental |
| Asset-based | Liquid assets | Large liquidity, uneven income |
On an investment property with an ADU, a DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Permitted ADU rent can support that coverage. Programs below 1.00 coverage are available through select lenders in the network, but LTV and terms adjust. Lendmire’s complete DSCR loans guide explains how that coverage is figured.
On the asset path, the asset allowance divides liquid assets by 36, 60 or 84 months. An assets-only file needs U.S. liquid assets equal to the loan amount plus closing costs plus sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59.5 and older. Business funds, gifts, crypto and unvested stock never count. Asset paths are for primary and second homes only.
What Should You Prepare Before Applying?
A prepared file is a cleaner file. Gather these items before the appraisal is ordered.
- Consecutive statements for the full 12 or 24 months, with every page.
- A letter of explanation for large deposits, transfers and any gaps.
- Proof of 25% or greater ownership for business statements.
- ADU permits, final inspection records, photos and any lease.
- Rent deposits traced to the unit, kept separate from business revenue.
- Separate, sourced funds for reserves.
For the full paper trail on the income side, Lendmire’s guide to bank statement cash-out refinance documents covers it item by item.
Key Terms Defined
Super jumbo: An industry label for loans well above the standard jumbo range, which tightens overlays on credit, reserves and appraisals.
Bank statement loan: A loan that qualifies a borrower on average eligible deposits from 12 or 24 months of statements instead of tax returns.
Expense ratio: The share of business deposits treated as operating cost and removed before income is averaged.
ADU (accessory dwelling unit): A second, self-contained living space on the same lot, with its own kitchen, bath and entrance, sometimes called a guest house or in-law unit.
Seasoning: The minimum time you must own a property before a program allows cash-out on it.
Cash-out ceiling: The highest loan-to-value a program allows on a cash-out refinance for a given occupancy and loan size.
Frequently Asked Questions
Does an ADU raise my cash-out amount?
Not automatically. A legal, permitted ADU may support a higher appraised value, depending on comps and underwriter review. The leverage ceiling stays tied to loan size and occupancy, so the ADU affects proceeds only through the appraisal.
Does ADU rent count as bank statement income?
It depends on the program. Qualifying income comes from deposits. Rent that lands in your submitted account is already in those deposits, and it should be documented as rent so it is not counted twice. Agency caps on ADU income do not govern these programs.
Can I use the cash-out to build the ADU?
Yes, if equity supports it, though the appraisal controls the result. Appraised value may not match construction cost, so size the request with a cushion, and keep the build budget and permits ready for the lender.
Does the ADU change whether the loan is super jumbo?
No. Loan amount sets that. The overlays begin at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, and loans above $4,000,000 are reviewed case by case before submission.
Can cash-out proceeds count toward my reserves?
Not on super jumbo files. Above the overlay lines, cash-out proceeds cannot satisfy reserves, so you need separate documented funds.
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 shops multiple wholesale programs and does not lend; all programs are subject to full underwriting and are not a commitment to lend. Consumer lending is licensed in 16 states.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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 serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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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. Fannie Mae ADU income sheet
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: Does a Super Jumbo Bank Statement Cash-Out Refinance Make Sense Before Selling? · Super Jumbo Bank Statement Cash-Out Refinance Requirements With Rolled-in Closing Costs · How to Qualify and Apply for a Super Jumbo Bank Statement Cash-Out Refinance
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.