The Quick Read: The best program for you is the one that fits your deposits, your loan size and your stated use of proceeds. Those three things decide the outcome far more than any program name does. Through select wholesale programs, subject to full underwriting, a self-employed borrower can qualify on bank deposits instead of tax returns. Cash-out leverage steps down as the loan grows, and a lender will ask what the cash is for.
- Income comes from 12 or 24 months of eligible deposits after an expense ratio, not from your tax return.
- On a primary residence, cash-out tops out at 80% on smaller loans and steps down from there as the loan grows.
- Every loan above $4,000,000 is reviewed case by case before submission.
- Cash-out proceeds generally cannot serve as your reserves under the super jumbo overlays.
- The mortgage balance stays fixed when your portfolio falls. Plan for that first.
Key Terms Defined
Super jumbo is an informal label for loans well above the standard jumbo range. No official definition exists, and each program sets its own tiers.
Bank statement loan is a non-QM mortgage. It is reviewed around documented deposits instead of tax returns. Non-QM means the loan sits outside the standard qualified-mortgage box.
Cash-out refinance replaces your current loan with a larger one. You receive the difference in cash.
LTV is loan-to-value: the loan balance divided by the property’s appraised value.
Reserves are liquid funds you must hold after closing, counted in months of payments.
Use of proceeds is the stated reason you want the cash. Lenders document it.
How Does a Bank Statement Turn Deposits Into Income?
Lenders add up eligible deposits and divide by the number of statement months. Business statements take an expense ratio off first. That result is your qualifying income.
Here is how it works across the wholesale network we place files with:
- Window: 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12. Transaction histories never substitute.
- Business statements: you need at least 25% ownership.
- Expense ratios: a fixed 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%) also exists.
- Personal statements: transfers from your own business into your personal account count in full.
- Debt-to-income: up to 50%.
Now the part that matters for this topic. Stock-sale proceeds, margin draws and brokerage transfers are not business revenue. Underwriters typically scrutinize them, and they rarely count as income. Recurring deposits from your operating business are what qualify you.
Not every high earner is reviewed on deposits. Two asset paths exist for the cash-rich borrower:
- Asset allowance: liquid assets are divided by 36, 60 or 84 months to create income. Primary and second homes only, 80% maximum.
- Assets-only: no debt-to-income test. You need U.S. liquid assets equal to the loan plus closing costs, plus sixty months of any net loss on other residential property.
Retirement accounts count at 70% (80% at age 59½ or older). Business funds, gifts, cryptocurrency and unvested stock never count.
How Far Can You Pull Out at Super Jumbo Size?
Less than you think, and the number depends on the loan band. Two wholesale programs cover the range. The portfolio non-QM program carries files up to $6,000,000. The bank portfolio program carries twelve-month-statement files up to $30,000,000 on its own ladder, beginning above $4,000,000 on a primary residence.
The table shows maximum cash-out LTV on a primary residence, through select wholesale programs, subject to underwriting. Read the band by the loan amount, not the purchase price. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
| Loan band | Cash-out LTV ceiling | 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%, on review | Bank portfolio |
| $5M–$6M | 55%, on review | Bank portfolio |
| $6M–$10M | 55%, on review | Bank portfolio |
| $10M–$20M | 50%, case by case | Bank portfolio |
| $20M–$30M | 50%, case by case | Bank portfolio |
Credit follows the same logic. The top cell in each band needs a certain score, and a lower score takes a lower leverage cell inside the same band. At the top of the first two bands, that means about 680 and 700. From $1.5M to $3.5M, it means 720 or better. In the $3.5M–$4M band, it means 760 or better. The program floors are 660 on the portfolio program up to the super jumbo line and 700 above it. The bank portfolio program keeps its own 680 floor at every size.
Cash-out limits matter as much as LTV. On the portfolio program, proceeds are unlimited at or below 60% LTV. Above 60%, cash in hand is capped at $1,500,000. The bank program publishes no cap. Second homes and investment property use their own ladders, so read each one from its own column. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Why Cash-Out Proceeds Can’t Be Your Cushion
Reserves must come from money you already hold. Reserves run 3 months up to $500,000, 6 months up 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.
Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, the super jumbo overlays apply. These overlays say cash-out proceeds cannot satisfy reserves. Even below those lines, plan as if they can’t. If you wire every dollar of proceeds into a brokerage account, you still need liquid cash outside it.
What Does a Lender Do With “Invest in Stocks” as the Purpose?
It treats the stated purpose as a real underwriting question. Lenders document why you want the cash, and the answer shapes how the file is classified.
Cash-out on your primary residence is a consumer-purpose loan. Investment property is different. Business-purpose credit is exempt from several consumer lending rules, and the CFPB’s Regulation Z exemption page lists extensions of credit made primarily for a business or commercial purpose. Buying stocks is not clearly business purpose, even when the collateral is a rental. Some lenders in the network will not accept passive securities investing as the stated purpose at all. Others will, with the right documentation.
Three practical rules follow:
- Say what the cash is for, plainly and truthfully. Any affidavit you sign is a representation.
- Expect questions about where the money goes after funding.
- Confirm purpose acceptance with your broker before you spend on an appraisal.
How to Judge “Best” Without a Ranking
No honest broker names one winner, because the best program for your situation changes with your file. Here is what to compare.
First, a note on terms. Jumbo simply means a loan above the conforming loan limit set by the FHFA. Super jumbo is how the market labels the far end of that range.
| Criterion | What to check |
|---|---|
| Leverage ladder | LTV in your loan band, by occupancy |
| Cash-out cap | Dollar limit above 60% LTV |
| Documentation window | 12 versus 24 months of statements |
| Expense ratio | Fixed ratio versus accountant letter |
| Reserve treatment | Whether proceeds count (usually no) |
| Interest-only | Which product, and the LTV ceiling |
| Purpose rules | Is securities investing accepted? |
Interest-only deserves a word. On the portfolio program, it runs to 85% LTV with a 700 score on purchase and rate-and-term files. It never raises a cash-out ceiling. The bank program offers interest-only to 60%, on 5- and 7-year fixed-period adjustables. Interest-only lowers carry, but your balance does not shrink while you hold the investment. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
A broker’s edge is comparison. One lender’s program may fit your deposits but not your purpose. Another may fit your purpose but cap your cash. Shopping several wholesale programs against one file is the whole point.
The Carry-Cost Stress Test
Do this before you borrow. It takes ten minutes and no spreadsheet.
Picture a founder who takes a cash-out at 65% LTV and invests the proceeds. The monthly obligation on the new loan is now larger, and it is fixed. Your portfolio is not fixed. Say it falls 30% in a bad year. The mortgage balance does not change by a dollar. Your equity has been converted from a home into a market position, and your debt stayed the same size. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Ask these questions:
- Can your deposits still cover the larger obligation if the portfolio earns nothing for two years?
- Could you hold through a prolonged downturn without selling?
- Is your cash outside the portfolio enough to cover the reserve months?
Compare this with a margin account. FINRA explains that margin typically requires 50% initial equity and 25% maintenance equity. Under FINRA Rule 2264, a firm can sell your securities without contacting you. A mortgage has no margin call. That is a real advantage. The tradeoff is that the lien sits on your home, and you owe the full balance whatever the market does.
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.
Other Ways to Fund the Same Goal
A cash-out is one tool. The table compares the realistic options for a high-balance borrower.
| Option | Collateral | Main tradeoff |
|---|---|---|
| Bank statement cash-out | Your property | Fixed debt, market-exposed proceeds |
| HELOC or second lien | Your property | Added lien, variable terms |
| Margin or securities-backed line | Your portfolio | Margin calls and forced sales |
| DSCR cash-out on a rental | The rental | It is reviewed on rental income, not deposits |
| Selling part of a holding | None | Ends a position; may trigger gains |
If part of your plan is rental real estate rather than equities, a DSCR cash-out refinance may fit better. DSCR loans qualify primarily on property-level rental income covering the payment, subject to lender guidelines. The complete DSCR loans guide explains how that works. For borrowers weighing the same strategy from a founder’s angle, Lendmire’s piece on whether a bank statement cash-out can fund the next investment goes deeper.
Who This Fits, and Who It Doesn’t
Fits. A founder or physician with strong, steady deposits, low existing debt and large liquid reserves held outside the property. The cash-out is a small slice of net worth. A market drop would be painful, not dangerous.
Doesn’t fit. A borrower whose deposits barely clear the debt-to-income test, whose reserves would come from the proceeds, or who would need to sell the portfolio to keep the mortgage current. Borrowing against your home to buy volatile assets is rarely a good fit for most households. That is a general principle, not a verdict on your file.
Honest broker advice sometimes ends in “don’t.” If the stress test fails, a smaller cash-out, a different use of the money, or no refinance at all may be the better answer.
From Application to Funding, Step by Step
1. Pre-qualify the file. Share deposits, credit, property and purpose with your broker.
2. Pick the program. The broker matches your loan band, occupancy and documentation window to a wholesale program.
3. Gather statements. Consecutive months, every page, with large transfers explained.
4. Order the appraisal. Value sets the LTV band.
5. Underwriting. The lender reviews deposits, credit, reserves and stated purpose. Loans above $4,000,000 get case-by-case review before submission.
6. Close and fund. You sign, the old lien is paid, and the difference is yours.
7. Deploy deliberately. Many investors stage the money into the market over time instead of all at once. Keep your reserves untouched.
Frequently Asked Questions
Can I use a bank statement cash-out to buy stocks?
It depends on the program and the stated purpose. Some lenders in the network accept it with documentation. Others will not take passive securities investing as the purpose. Ask before you apply, because purpose is part of how the file is classified.
Do stock sales and brokerage transfers count as bank statement income?
Typically not. Underwriters generally treat them as transfers or one-time items, not recurring revenue, and they scrutinize them. Deposits from your operating business are what qualify you. Transfers from your own business into a personal account count at 100%.
How much cash can I take out?
It depends on the loan band and program. On a primary residence, the cash-out ceiling is highest on smaller loans and steps down toward the top of the bank program’s range. Proceeds are unlimited at lower leverage levels, and the portfolio program caps cash in hand above that point. At the largest loan sizes, everything is reviewed case by case. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Is a margin loan better than a cash-out refinance?
Neither wins outright. Margin has no home lien but can force sales without notice. A cash-out has no margin call but leaves you owing the full balance if the market falls. Many high earners use neither.
Does a bank statement loan mean no income check?
No. It is reviewed on documented income under the applicable program, subject to lender guidelines. The lender still checks deposits, credit, debt-to-income and reserves.
Next Step
Lendmire is a mortgage broker, not a lender, and its consumer mortgage lending is licensed in AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. For borrowers weighing which documents to gather first, there is a companion on the paperwork a bank statement cash-out refinance requires.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
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. CFPB, Regulation Z §1026.3 Exempt Transactions
2. FHFA, Conforming Loan Limit
4. FINRA Rule 2264, Margin Disclosure Statement
5. Fidelity, Borrowing on Margin
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: Refinance vs Recast vs Keeping a Super Jumbo Bank Statement Loan · Should You Refinance a Super Jumbo Bank Statement Loan Now? · Super Jumbo Bank Statement Refinance Worth the Closing Costs
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.