The Quick Read: Lenders underwrite this loan in a set order: they clean up your bank deposits, turn them into monthly income after an expense ratio, test your debt-to-income with the new payment, size the loan against the home’s value and the program’s cash-out ladder, and then check reserves, which on the largest loans the proceeds themselves cannot fill. The cash can fund a down payment on another property. Every figure below describes what is available through select wholesale programs, subject to full underwriting, and none of it is a commitment to lend.
- Qualifying income comes from eligible deposits over 12 or 24 months, reduced by an expense ratio, not from tax returns.
- Cash-out leverage steps down as the loan grows, and every loan above $4,000,000 is reviewed case by case before submission.
- Cash-out proceeds are loan proceeds, never income, and on the largest loans they cannot count toward reserves.
- The next property’s lender runs its own underwriting and counts the larger payment on the refinanced home.
What You Are Actually Asking a Lender to Do
This is three decisions stacked together. One is an income method (bank statements). One is a loan size tier (super jumbo). One is a purpose (cash-out, with the proceeds headed toward a down payment).
“Super jumbo” is not a government category. Each lender draws its own line, and the overlays tighten as the balance rises. Lendmire, a mortgage broker, places these files with wholesale lenders through two programs. The first is a portfolio non-QM bank-statement program, called the portfolio program here, which carries loans from $300,000 to $6,000,000. The second is a bank portfolio jumbo program, called the bank program here. It takes twelve-month-statement files up to $30,000,000 on its own ladder, which begins above $4,000,000 and overlaps the portfolio program up to $6,000,000.
The brokerage never lends. It matches your deposits, equity and goals to whichever program fits, and the best fit for your situation depends on loan size, occupancy and how your income is documented.
Key Terms Defined
Super jumbo: a loan large enough that lenders apply extra overlays. The line is set by each lender, not by law.
Bank statement loan: a mortgage that is reviewed around deposits into your accounts instead of on tax returns.
Expense ratio: the share of business deposits the lender assumes went to costs, so only the remainder counts as income.
Cash-out refinance: a new loan larger than your old one, with the difference paid to you.
Net proceeds: what reaches your account after the old loan is paid off and costs are deducted.
Reserves: liquid money left over after closing, measured in months of payments.
Debt-to-income (DTI): your monthly debts divided by your monthly qualifying income.
Step by Step: How Underwriters Treat the File
Think of the file as a series of gates. Failing any one stops the loan, so the order matters.
1. Pick the statement window. Programs use 12 or 24 consecutive months of personal or business statements. The bank program uses 12. The months must run back to back. A transaction history printout does not replace a statement.
2. Scrub the deposits. The underwriter removes anything that is not earned income: transfers between your own accounts, loan proceeds, refunds and one-time credits. Transfers from your own business into a personal account count in full.
3. Apply the expense ratio. This applies to business statements, which need at least 25% ownership. Across the network, the 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 can replace the fixed one. Underwriters check the support: SEC-filed due-diligence exhibits show reviewers accepting an alternate expense ratio only when the file backs it up, and flagging a missing profit-and-loss statement when guidelines call for one. Personal statements skip this step.
4. Average the result. Eligible deposits after the expense ratio, divided by the number of statement months, give monthly qualifying income.
5. Test debt-to-income with the new payment. DTI can run up to 50% across the network. Scotsman Guide notes that some non-QM lenders underwrite to that same 50% level. The larger payment on the refinanced home goes into this test, so cash-out lowers your cushion.
6. Size the loan and review the property. Credit, appraisal and the leverage ladder come next, covered below.
7. Verify reserves. Reserves are 3 months of payments for loans to $500,000, 6 months to $1,500,000 and 9 months above that. Add 2 months for each additional financed property, to a 12-month maximum. First-time investors need 12 months.
How Far the Cash-Out Can Go
Cash-out leverage drops as the loan grows. On a primary residence, the ceiling is 80% on loans to $1,500,000. It steps down through the middle bands to 65% on loans between $3,500,000 and $4,000,000 through the portfolio program. The bank program takes over above that, with 60% from $4,000,000 to $5,000,000 on review, 55% from $5,000,000 to $10,000,000 on review, and 50% from $10,000,000 to $30,000,000 on review.
Read these bands by loan amount, not by home value. Multiply value by leverage first, then find that loan in its band. Lendmire’s article on how leverage steps down by loan balance on cash-out files lays out the whole ladder.
Credit works the same way. The top leverage cell in a band needs a stronger score, while the program floors are lower. The portfolio program’s floor is 660 up to the super jumbo line and 700 above it. The bank program has its own 680 floor at every size, including above the super jumbo line, and its bands begin at $4,000,000 on a primary residence. A lower score usually takes a lower leverage cell in the same band.
Second homes and investment properties follow their own ladders, and each occupancy’s figures should be read from its own ladder, not guessed from the primary residence.
Proceeds themselves are limited two ways. Cash-out is unlimited at or below 60% LTV. Above 60% on the portfolio program, cash in hand is capped at $1,500,000. The bank program publishes no cap. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Above $3,500,000 on a primary residence, and $3,000,000 on a second home or investment property, the portfolio program’s super jumbo overlays apply:
- a 700 credit floor and a 0x30x24 housing history;
- 48 months of seasoning after any credit event;
- U.S. citizens and permanent residents only, with no non-occupant co-borrowers;
- no rural property, and ten acres maximum;
- cash-out proceeds cannot satisfy reserves.
A Worked Example, in Percentages
Take a hypothetical primary residence valued at $5,500,000, with an existing mortgage equal to 40% of that value. This is a modeled scenario, not a market fact.
A 65% cash-out puts the new loan in the $3,500,000 to $4,000,000 band through the portfolio program. The top cell there needs credit of 760 or higher, and the program’s 700 floor applies. Net proceeds are roughly 25% of the home’s value, before closing costs. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Now the income side. Say your business statements show 100 units of eligible deposits a month, and your business has three employees. The 40% expense ratio leaves 60 units as qualifying income. DTI is then tested with the new, larger payment on this home. If the next purchase is a rental financed with a DSCR loan, that property qualifies primarily on property-level rental income covering its payment, subject to lender guidelines, so your personal DTI matters less there.
The cash gets divided. Part goes to the down payment and closing costs on the next property. Because this loan sits above $3,500,000, none of the proceeds can count as reserves. At 9 months of reserves, you still need that cushion from other liquid money after the down payment leaves your account. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Other Ways to Qualify
Bank statements are not the only path. The right one depends on where your wealth sits.
| Path | What gets tested | Best fit |
|---|---|---|
| Bank statements | Eligible deposits over 12 or 24 months | Active business owners |
| Profit-and-loss only | Accountant-prepared P&L | Clean books, lumpy deposits |
| Asset allowance | Liquid assets divided by 36, 60 or 84 months | Large portfolios, modest income |
| Assets only | Liquidity equals loan plus costs | Wealth-heavy, income-light |
Asset paths apply to primary and second homes. The 84-month divisor is used for standalone files and any loan above $3,500,000. Retirement accounts count at 70%, or 80% at age 59½ and older. Business funds, gifts, cryptocurrency and unvested stock never count. For the investment purchase itself, the complete DSCR loans guide explains the rent-based route.
Cash-Out First or Purchase First?
| Factor | Cash-out first | Purchase first |
|---|---|---|
| Down payment | Cash is documented in your account | Funds come from other sources |
| Paper trail | Settlement statement, then deposit | Contract and source records |
| Risk | Larger payment hits your DTI early | Equity stays tied up |
Cash-out first works when you want certainty before you bid. Purchase first suits borrowers with enough liquidity who would rather refinance later. Equity counts toward a down payment only after it becomes documented cash in your account.
Where These Files Break
| Problem | Cause | Fix |
|---|---|---|
| DTI fails | New payment too large | Lower the loan amount or add qualifying income |
| Reserves short | Proceeds spent or barred | Hold separate liquid funds |
| Deposits rejected | Transfers or unexplained credits | Document sources before applying |
| Missing months | Gap in the statement window | Supply every consecutive statement |
Spending the cash on the down payment and then finding reserves short is the avoidable trap on a super jumbo loan.
Why the Purpose of the Loan Matters
The loan’s purpose shapes how a lender reviews it. A cash-out on your primary residence is a consumer-purpose loan, so the lender must make a reasonable determination that you can repay. Credit to acquire or maintain a non-owner-occupied rental is generally treated as business purpose, per the CFPB’s rule on exempt transactions. Either way, a bank statement file is underwritten, never waved through.
Frequently Asked Questions
Can I use all of the cash-out for a down payment?
Usually yes, since cash-out proceeds are unrestricted, through select wholesale programs. The limits are the cash-in-hand cap above 60% LTV on the portfolio program and the reserves you still must show afterward.
Do the proceeds count as reserves?
Not on super jumbo overlay loans. Above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, cash-out proceeds cannot satisfy reserves. Below those sizes, treatment depends on the program.
Are cash-out proceeds treated as income?
No. They are loan proceeds, and underwriters scrub them from the deposit analysis. Tax treatment varies; consult a qualified professional.
Is super jumbo defined by law?
No. Each lender sets its own threshold, and overlays tighten as the balance rises. Every loan above $4,000,000 is reviewed case by case before submission.
What if the next property appraises low?
The second lender sizes its loan to the lower value, so your down payment need rises. Keep a cash cushion beyond the planned down payment.
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. 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 every file is underwritten individually.
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
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. 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. Scotsman Guide – Rev Up the Engine for Non-QM Lending
2. CFPB – 12 CFR 1026.3 Exempt transactions
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: Can Commissioned Real Estate Agents Get a Super Jumbo Bank Statement Cash-Out Refinance? · Can You Get Approved for a Super Jumbo Bank Statement Cash-Out Refinance With a 1099?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.