The Quick Read: Reserves do not reduce the cash you receive, because six months of reserves is a separate pool of your own money, and cash-out proceeds cannot be used to fill it. The loan-size band sets the maximum cash-out LTV, and your net cash is that maximum loan, minus your payoff, minus closing costs and any prepayment charge. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
- On a cash-out, typical ceilings step down with loan size: 75% to $1,000,000, 70% to $1,500,000, and 60% from $1,500,000 to $3,000,000, subject to underwriting.
- No cash-out is offered above $3,000,000. Above that size the options are a purchase or a payoff-only refinance.
- Reserves are typically six months of PITIA on the subject property (twelve for first-time investors), held in your own verified funds.
- Proceeds are unlimited at or below 60% LTV, with a $1,500,000 cap above 60%, and 680-and-below credit gets no cash-out above a $1,500,000 loan.
- The new, larger loan must still clear coverage, so taking less cash is often the cleanest fix.
The sections that follow cover the loan-size band, the reserves, the proceeds cap and the edge cases, one at a time. Figures are typical ceilings from select wholesale programs, subject to underwriting, and are not a commitment to lend. The wider framework sits in Lendmire’s complete DSCR loans guide.
What Does “Super Jumbo” Mean in DSCR Lending?
Super jumbo has no official definition. The conforming limit itself is an agency-set number, with a baseline figure and a higher ceiling for one-unit properties in designated high-cost areas.
That limit does not cap a DSCR loan. DSCR loans are non-QM, so they sit outside agency purchase programs entirely. Scotsman Guide notes that a non-QM jumbo can provide financing of $3 million or more, and describes DSCR loans as a tool for investors whose rental income covers the payment.
On the portfolio investor program the network places files with, loan amounts run from $150,000 to $10,000,000. The standard DSCR program stops at $3,000,000. The portfolio program carries qualified investors past that size, though cash-out stops at $3,000,000.
The Net-Cash Formula
Net cash is simple arithmetic:
Net cash = (appraised value × cash-out LTV for the loan band) − existing payoff − closing costs and any prepayment charge.
Reserves are not in that formula. They are a second requirement, tested separately. You need six months of PITIA on the subject property in your own funds, verified, and that money stays in the account. Taking it out of the proceeds does not count. Across the network, cash-out proceeds never satisfy reserves on super jumbo files, even though some smaller programs treat that differently.
So the plan runs on two tracks. Track one is the cash you pull out to deploy. Track two is the liquidity you already hold to meet reserves. An investor who counts on track one to fill track two will find the file short.
How the Loan-Size Band Sets Your Ceiling
The requested loan amount, not the property value, picks the band. Here is the cash-out ladder at 1.00 coverage or higher, as typical ceilings through select programs, subject to underwriting:
| Loan band | Cash-out LTV ceiling |
|---|---|
| $150K–$1M | 75% |
| $1M–$1.5M | 70% |
| $1.5M–$2M | 60% |
| $2M–$3M | 60% |
| $3M and above | No cash-out |
The credit score matters too, and it is not the same as the program floor. The floor is 660 on loans to $3,000,000. The top cell in each band needs more: roughly 660 or better at 75%, 700 or better at 70%, and 720 or better at 60% in the $1.5M–$3M bands. A lower score takes a lower leverage cell inside the same band.
One more trap sits in how bands work. A loan target of 70% on a property can land the loan in the $1.5M–$2M band, where cash-out tops out at 60%. For a loan near $1.68M, the ceiling is 60%, not 70%. Compute price times leverage first, then read the band for that loan.
A Worked Example at a Super Jumbo Balance
Run the numbers on a $3,000,000 property with an existing payoff of $1,200,000. These are modeled assumptions, not market data.
At the 60% ceiling for the $1.5M–$3M bands, the maximum loan is $1,800,000. Subtract the $1,200,000 payoff and about $600,000 remains before closing costs and any prepayment charge. The six months of reserves come from other funds, outside that $600,000.
Now cut the appraisal by 10%, to $2,700,000. The loan ceiling falls to $1,620,000. Cash before costs falls to $420,000. The payoff is fixed, so each dollar of lost value cuts the loan by about the LTV percentage, and the entire cut comes out of your proceeds. A 10% miss on value took roughly 30% off the cash.
| Scenario | Value | Max loan at 60% | Cash before costs |
|---|---|---|---|
| As expected | $3,000,000 | $1,800,000 | $600,000 |
| Appraisal 10% low | $2,700,000 | $1,620,000 | $420,000 |
Above $2,000,000 in loan size, two appraisals are expected, so a low number on either one is something to plan for before the file goes in. If a low value arrives, an appraisal reconsideration with recent comparable sales is the normal response, but the safer plan is a payoff and cost buffer that survives a miss.
Does the Proceeds Cap Matter?
On the network’s guidelines, proceeds are unlimited at or below 60% LTV. Above 60% LTV, gross proceeds are capped at $1,500,000. Because the $1.5M–$3M cash-out band already sits at 60%, the cap matters mainly for borrowers near the edges of the bands, such as a loan near $1,500,000 priced at 70%. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Treat the cap as a program detail to confirm on the specific lender’s matrix. The lender-level version is the one that governs your file, not a general summary.
How Reserves Work (and What Counts)
Reserves are verified liquid funds left over after cash to close. Divide those assets by the monthly PITIA to get months of reserves. No extra reserves are typically required for other financed properties.
Some lenders in the network ask for more months at the top of the size range, so six months is the typical figure, not a promise. Confirm the number on the program you are submitted to.
Interest-only changes the math. On interest-only loans, reserves are counted on ITIA rather than PITIA, so the dollar amount to hold is lower. The program offers a 120-month interest-only period on 30- and 40-year terms, capped at 75% and qualified on ITIA with coverage of 0.75 or better. Since cash-out above 60% LTV tops out under the $1.5M proceeds cap, interest-only works mostly as a coverage tool in the lower bands. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
What counts as reserves:
- Bank and brokerage balances, usually at full value.
- Retirement balances, often at a discount.
- Not gifts, not unsecured borrowed funds, and not home equity.
- Never the cash-out proceeds on a super jumbo file.
Reserves documentation is where files lose time before underwriting. Two months of statements showing seasoned balances, with large deposits explained, keeps the reserves review clean.
Coverage on the New Payment
Here is where cash-out files get squeezed. Coverage is market rent divided by the full PITIA of the new, larger loan, not the old one. A rental that cleared 1.00 at purchase can miss it after a cash-out, because the debt went up and the rent did not. The 1.00 benchmark earns full leverage on the ladder above.
Below 1.00, there are real paths. Coverage from 0.75 to 0.99 is available through select programs to $2,000,000, and LTV and terms adjust, subject to underwriting. No-ratio is a narrower route: through select wholesale programs to $2,000,000, it requires a seven-year clean housing history and 0x30x24, subject to underwriting, and no minimum ratio is published for it.
DSCR counts rent against PITIA only. Repairs, vacancy and management sit outside the ratio. So clearing 1.00 does not mean positive cash flow after capital needs. An older luxury property with a roof or system due can pass coverage and still run thin.
Edge Cases That Change the Answer
- Loan above $3,000,000. No cash-out. Purchase or payoff-only refinance is the path, at 65% on a purchase or rate-and-term from $3M to $4M, and 60% on review above $4M.
- Credit at 680 or below. No cash-out above a $1,500,000 loan.
- Loans above $3,000,000. The super jumbo overlay sets the floor at 700, with 0x30x24, 48-month event seasoning, citizens and permanent residents only, no rural property, and a ten-acre maximum.
- Short-term rental collateral. Cash-out on short-term rental collateral typically tops out around 70% on standard-size loans, and short-term rental files stop at $2,000,000. Income is twelve months of operating history on a refinance, taken at 80% of gross. Municipal permission is documented per property, and short-term rental rules vary by city, county, HOA, and property type, so confirm local rules before relying on projected income.
- Acreage and rural. Up to twenty acres on loans to $3,000,000. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one.
- Condos. Warrantable and non-warrantable condos are eligible, with non-warrantable capped at 75% and $1,500,000.
- Seasoning. About six months from title recording is the common expectation on a recent purchase. A purchase-then-cash-out plan that skips that step gets kicked back.
Common Misconceptions
Reserves reduce my cash out. They do not. They are a separate pool.
75% applies at any size. It applies only up to $1,000,000 on a cash-out.
The conforming limit caps DSCR loans. It does not, per the agency contrast above.
Super jumbo is a regulated category. It is a market label. Pricing and leverage vary by lender.
The test uses my old payment. It uses the new one.
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.
Key Terms Defined
Super jumbo: a trade label for loans far above the conforming limit, with no official definition.
Cash-out proceeds: the new loan minus the payoff, costs, and any prepayment charge.
Reserves: your own verified liquid funds held after closing, measured in months of payment.
PITIA: principal, interest, taxes, insurance, and any association dues, the full monthly obligation used in the coverage test.
ITIA: interest, taxes, insurance, and association dues, used on interest-only loans.
DSCR: the ratio of the property’s market rent to its full monthly obligation.
The Investor Decision
Equity at the top end is not fully accessible. Leverage falls from 75% to 60% as the loan grows, so the same equity yields proportionally less cash. A borrower with a large equity position in a high-value rental should expect the usable share to shrink at the size where it matters most.
Plan the two pools before applying. Confirm the six months of PITIA is already sitting in verified accounts. Order the appraisal with the rent schedule early, since the appraisal is the single input that moves your net cash. Run coverage on the new payment, not the old one.
If the cash target is above what the band allows, there are three levers: a smaller cash-out, a longer interest-only runway, or a restructure of the payoff. Business-purpose financing is arranged in 41 markets, including Washington, D.C. Entity vesting is welcome, with no layered entities, subject to lender program requirements.
Frequently Asked Questions
Do the six months of reserves come out of my cash-out proceeds?
No. Reserves must come from your own verified funds, and cash-out proceeds never count toward them on super jumbo files. Some smaller programs treat proceeds differently, so the rule you plan around should be the strict one.
What is the maximum cash-out LTV on a super jumbo loan?
It depends on the loan band. Typical ceilings are 75% to $1,000,000, 70% to $1,500,000, and 60% from $1,500,000 to $3,000,000, through select programs and subject to underwriting. Above $3,000,000 there is no cash-out. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Can I take cash out on a loan above $3,000,000?
Not on this program. Above $3,000,000 the options are a purchase or a payoff-only refinance, at 65% from $3M to $4M and 60% above that on review.
How does a low appraisal affect my cash?
Heavily. The payoff stays fixed, so lost value reduces the loan by about the LTV percentage and the full reduction comes out of proceeds. In the example above, a 10% low appraisal cut cash before costs by roughly 30%.
Does interest-only lower the reserves I need?
Yes, in dollars. Reserves are counted on ITIA instead of PITIA, so the amount held is smaller. The month count stays the same, typically six, subject to the program.
Is a super jumbo DSCR loan the same as a jumbo mortgage?
No. A DSCR loan is a non-QM, business-purpose loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
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. Reach the team at 828-256-2183 or request a quote.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s super jumbo DSCR 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 focused on investor financing, arranging DSCR loans in 40 states plus Washington, D.C. — 41 markets total. Qualification is based on the property’s income rather than personal income documentation, subject to lender guidelines, making it a fit for LLC-held rentals and scaling portfolios.
Scotsman Guide named Lendmire a Top Mortgage Workplace in 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: One out of 20 mortgages are non-QM
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: Best Super Jumbo DSCR Cash-Out Refinance Program Twice in Twelve Months · How Lenders Underwrite a Super Jumbo DSCR Cash-Out Refinance on Ten or More Rentals · Can You Get Approved for a Super Jumbo DSCR Cash-Out Refinance After Delisting?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.