The Quick Read: Yes, but only while the new loan, including any financed costs, stays at or under $3,000,000. Through select wholesale programs, cash-out ends above that size, and leverage steps down as the balance grows. Rolled-in costs shrink your net cash, raise the balance, and thin your coverage ratio, all subject to underwriting.
- Cash-out stops above $3,000,000 in loan amount, not property value.
- Cash-out leverage runs 75% to $1,000,000, 70% to $1,500,000, and 60% to $3,000,000.
- Financed costs sit inside the new loan, so they can push a file into a tougher band.
- Coverage is tested on the new, larger balance, and 1.00 earns full leverage.
- Cash-out proceeds never count toward the six months of reserves.
Programs change and every file is underwritten individually. Nothing here is a commitment to lend.
What Does “Super Jumbo” Actually Mean?
It means a loan bigger than a typical jumbo loan, and no agency defines it. The Federal Housing Finance Agency sets the conforming loan limit, and anything above that is jumbo. “Super jumbo” is a label lenders add on top, commonly for balances above $3,000,000.
For you, the label matters less than the band your loan lands in. Across the wholesale network Lendmire works with, the requested loan amount sets your maximum cash-out leverage, your credit needs, and whether two appraisals are required. The standard program stops at $3,000,000. The super jumbo ladder carries qualified investors from there to $10,000,000, though cash-out does not travel that far. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
How Do Rolled-In Costs Work on a Cash-Out Refinance?
Closing costs get added to the new loan, and they come out of your proceeds. The new loan pays off the old one, covers the costs, and whatever remains is your cash. Think of it as a waterfall:
| Step | What happens |
|---|---|
| New loan amount | Set by value and leverage band |
| Minus payoff | Existing balance retired |
| Minus closing costs | Financed or paid from proceeds |
| Minus prepayment penalty | Deducted if the old loan has one |
| Minus holdbacks | Any amounts held back |
| Equals | Net cash to you |
Rolling costs in saves cash today. It also makes the loan bigger and coverage thinner. Costs on these loans are a meaningful share of the balance, and the exact amount varies by file, so ask for a line-by-line breakdown before you decide.
Here is the catch that most investors miss. The new loan, including financed costs, has to fit the band and the leverage ceiling. You cannot roll costs on top of a maxed-out loan. If the property supports 60% leverage on a cash-out, the costs must fit inside that 60%. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Does Rolling Costs In Change the Size Band?
Yes, it can. Financed costs push the balance up, and a balance that crosses a line changes the rules. The key lines are $1,000,000, $1,500,000, $2,000,000, and $3,000,000.
Here is how each line bites on a cash-out:
- Up to $1,000,000: leverage tops out at 75%, with credit of 660 or better.
- $1,000,000 to $1,500,000: the ceiling drops to 70%, and that top cell needs credit around 700.
- $1,500,000 to $3,000,000: the ceiling is 60%, and the top cell needs credit around 720. At or below 60% leverage, proceeds are unlimited. Above 60%, proceeds are capped at $1,500,000.
- Above $1,500,000: borrowers with credit of 680 or below get no cash-out.
- Above $2,000,000: two appraisals are required.
- Above $3,000,000: no cash-out at all. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The credit scores above are what each band’s top leverage needs. The program floor is 660 on loans to $3,000,000 and 700 above it. A lower score takes a lower leverage cell, subject to underwriting.
Picture a property worth $4,000,000. At 60% leverage the new loan is under $3,000,000, so cash-out is still available. At 80% the loan would exceed $3,000,000, and cash-out disappears. The test applies to the loan, not the value. A file sitting just under a line can tip over once costs are financed, so run the full balance before you commit. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Three Ways to Handle Closing Costs
You have three real options. Each trades cash, coverage, and lifetime cost differently.
| Approach | Balance | Coverage | Net cash |
|---|---|---|---|
| Pay from your own funds | Smaller | Stronger | Full proceeds |
| Roll into the loan | Larger | Thinner | Reduced by costs |
| Take a lender credit | Same | Pricing adjusts | Costs offset |
Paying from your own funds keeps the balance lowest. Rolling costs in preserves cash. A lender credit trades upfront cost for pricing terms, which you should compare on the whole quote. A broker is paid by the lender or by the borrower, and you should weigh the full terms either way.
Disclosure forms for consumer mortgages do not apply here. DSCR loans are business-purpose, and the Federal Reserve’s supervision manual explains that credit to acquire or improve non-owner-occupied rental property counts as business purpose. Plan to compare terms by reading the lender’s quote carefully, line by line.
What Happens to Your Coverage Ratio?
It falls as the balance rises. Coverage divides the property’s rent by the full monthly obligation. Pull more cash and the obligation grows while rent stays put. The AirDNA explainer on debt service coverage lays out the same formula for rental properties.
On a refinance, income is twelve months of operating history, counted at 80% of gross. Coverage is tested on the new loan. Rent becomes the binding limit well before leverage does.
Run it this way. Say a rental clears roughly 1.25x with your costs paid in cash. Roll those costs in, and the same rent might land near 1.15x. Still above 1.00, still workable. Now take a property that sat at 1.05x. Financing costs could push it under 1.00x, and the deal would then only work with a lower-leverage loan. Programs below 1.00 coverage do exist through select lenders in the network, but LTV and terms adjust, subject to underwriting. Those numbers are modeled assumptions, not market data.
A broker’s observation worth keeping: files with thin coverage often get better results by trimming the loan amount a little than by chasing maximum proceeds.
Short-Term Rentals and Recent Purchases
Short-term rental collateral qualifies only up to $2,000,000 in loan amount. Income is documented operating history, counted at 80% of gross, with coverage of 1.00 or better. Municipal permission is documented per property. Short-term rental rules can vary by city, county, HOA, and property type, so confirm local rules before relying on projected rental income.
If you bought recently, a title seasoning clock applies. Inside that window, cash-out is sized on what you paid plus documented improvements, not on what the property might appraise for. A payoff-only refinance that covers just the old balance plus costs is generally treated as rate-and-term. Costs can be rolled into it without creating cash-out. Cash beyond that converts the file to cash-out.
When Rolling Costs In Is a Bad Idea
Skip it when any of these apply:
- Your coverage already sits near 1.00.
- The added balance would cross into a lower-leverage band.
- You plan a short hold and the penalty window on the new loan matters.
- You need the cash to meet reserves. Proceeds never count toward the six months of reserves on the subject property, so you need separate liquid funds.
- The existing loan carries a prepayment penalty that already eats into proceeds.
Rolling in makes sense when your coverage has real cushion and the extra cash will go to work in your investing business. The file should show where the money goes, since proceeds are meant for the investing business.
What If Your Balance Is Above the Cash-Out Range?
Then cash-out is off the table, but you have moves. Options include a rate-and-term refinance, a smaller balance that fits the ladder, or staging the debt across more than one loan. Rate-and-term runs 65% leverage from $3,000,000 to $4,000,000 and 60% from $4,000,000 to $10,000,000. Every request above $4,000,000 is reviewed case by case before submission. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Interest-only helps with cash flow on these files. The program offers a 120-month interest-only period on 30- and 40-year terms, up to 75% leverage, with coverage of 0.75 or better. Lendmire’s piece on super jumbo cash-out refinance requirements with closing costs rolled in walks through the file checklist. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Key Terms Defined
Super jumbo: A lender label for loans above the usual jumbo range, commonly above $3,000,000. No agency regulates it.
DSCR: Debt service coverage ratio, meaning monthly rent divided by the full monthly payment.
Cash-out refinance: A new loan that pays off the old one and gives you extra cash.
Rate-and-term refinance: A new loan that changes terms without paying you extra cash.
Net proceeds: The cash you receive after payoff, costs, and holdbacks.
Reserves: Liquid funds held after closing, six months on the subject property here.
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.
Pre-Application Checklist
Gather these before you talk to a broker:
- A current payoff statement for the existing loan.
- The lease, or a rent opinion from the appraiser.
- Twelve months of operating history for the property.
- Entity documents if you hold title in an LLC (entity vesting is welcome, with no layered entities, subject to program terms).
- Proof of liquid reserves separate from expected proceeds.
- A short note on how you will use the proceeds.
Expect an appraisal that includes a rent schedule (commonly Form 1007) or an income statement for small residential income properties (commonly Form 1025). Above $2,000,000, expect two appraisals. A low appraisal hits your check dollar for dollar. DSCR files qualify primarily on property-level rental income covering the payment, subject to lender guidelines.
For the wider picture, the complete DSCR loans guide covers how these programs fit together.
Frequently Asked Questions
Can I roll closing costs into a super jumbo cash-out?
Yes, if the total new loan stays within the band and leverage ceiling. The costs count toward the $3,000,000 cash-out limit, and they reduce your net proceeds, subject to underwriting.
Does rolling costs in change my coverage ratio?
Yes. A bigger balance means a bigger payment against the same rent, so coverage drops. Most programs want 1.00 for full leverage. Select lenders review lower coverage at reduced leverage, with terms adjusting.
Can cash-out proceeds count as reserves?
No. Reserves are six months on the subject property, and cash-out never satisfies them. Keep separate liquid funds for that requirement.
What if my new loan would exceed $3,000,000?
Cash-out is not available at that size. You can pursue a rate-and-term refinance, lower the balance, or stage the debt. Above $4,000,000, every request is reviewed case by case.
Does a payoff-only refinance with costs count as cash-out?
Generally no. A refinance covering the old balance plus closing costs is typically treated as rate-and-term. Cash beyond payoff and costs converts it to cash-out.
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. Lendmire is a broker arranging business-purpose financing through select lenders across 41 markets, including Washington, D.C. Tax treatment varies; consult a qualified professional.
The investors who do best at this size treat the $3,000,000 line as a design constraint and size the loan beneath it on purpose.
For the mechanics of pulling equity out of a rental 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
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 tax returns, 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.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. FHFA: Conforming Loan Limit
2. Federal Reserve: Supervision Manual, Truth in Lending
3. AirDNA: Debt Service Coverage Ratio in Real Estate
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: Super Jumbo DSCR Cash-Out Refinance Requirements When Two Appraisals Are Required · Best Super Jumbo DSCR Cash-Out Refinance Program for an Out-of-State Investor · Super Jumbo DSCR Cash-Out Refinance Requirements With Twelve Months of Reserves
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
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.