The Quick Read: Large retail banks usually decline this loan on bank statements. It more often comes from portfolio non-QM programs and bank portfolio jumbo programs that a mortgage broker reaches through a wholesale network. Which program fits depends on your deposits, the loan size after the buyout, your credit, and whether the home is your residence or a rental. Lendmire is a mortgage broker, so it shops those programs for your file and does not lend itself.
- You qualify on 12 or 24 months of deposits after an expense ratio, not on tax returns, through select wholesale programs, subject to full underwriting.
- A divorce buyout is underwritten as a cash-out refinance, so the cash-out leverage ceiling applies, not the higher purchase ceiling.
- Loan sizes run from $300,000 to $30,000,000 across two programs, a portfolio program to $6,000,000 and a bank program above $4,000,000.
- The divorce decree does not remove your ex from the old mortgage. Paying off the old loan does.
- The loan must cover the old payoff, the equity payment to your ex, and costs, all inside the cash-out ceiling for the final loan size.
What a Divorce Buyout Loan Actually Is
A divorce buyout loan is one new mortgage that does three jobs. It pays off the joint mortgage, pays your ex-spouse their share of the equity, and covers the closing costs. You keep the home. Your ex gets cash and, once the old loan is paid off, comes off the debt.
That last point trips people up. A decree assigns the house to you, but the lender was never a party to the divorce. The old note stays in both names until a refinance, an assumption with release, or a payoff ends it.
Agency-style programs sometimes treat a buyout of a co-owner as a limited cash-out refinance, which carries a higher leverage cap. Most non-QM programs do not extend that treatment. They apply the ordinary cash-out ceiling, so plan around it.
Which Banks Offer a Super Jumbo Bank Statement Cash-Out Refinance?
The loans that fit usually come from three channels: a portfolio non-QM program (the portfolio program), a bank portfolio jumbo program (the bank program), and the mortgage broker that matches your file to one of them. Here is how they compare.
| Lender type | Who it suits | Bank statement option |
|---|---|---|
| Large retail lender | Tax-return and W-2 borrowers | Often limited |
| Portfolio program | Self-employed borrowers, loans to $6,000,000 | 12 or 24 months |
| Bank program | Larger files, loans to $30,000,000 | 12 months |
| Wholesale broker | Matching a file to a program | Access to both programs |
The portfolio program is a non-QM program, meaning the loan sits outside standard agency rules and the lender holds it. It carries files up to $6,000,000. The bank program carries twelve-month-statement files up to $30,000,000 on its own size ladder.
That ladder begins above $4,000,000 and overlaps the portfolio program up to $6,000,000. Above $6,000,000 the bank program stands alone. Lendmire never names the lenders behind either program. The best program for your situation depends on loan size, credit, how you document income, and the property.
Key Terms Defined
Jumbo loan: A loan above the conforming limit for the county where the home sits. The Federal Housing Finance Agency sets those limits, and its loan limit lookup shows yours. The one-unit baseline limit is $832,750, and the high-cost ceiling is $1,249,125, according to Orrick’s summary of the agency’s announcement.
Super jumbo: A loan far above the jumbo line. No regulation defines it, so each program sets its own threshold. Across the network, extra overlays start above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Bank statement loan: A mortgage that is reviewed around deposits in your personal or business accounts instead of tax returns.
Cash-out refinance: A new loan larger than the old payoff. In a buyout, the extra amount goes to your ex.
Limited cash-out: An agency label for a refinance that only pays off the old loan and closing costs, or buys out a co-owner. It carries a higher leverage cap than a true cash-out. Most non-QM programs do not use it.
Expense ratio: The share of deposits treated as business costs and removed before income is counted.
Equity payment: The amount you pay your ex for their share of the home’s value.
How Underwriting Treats a Divorce Buyout, Step by Step
Underwriting follows the same order on every buyout file. Each step either sizes the loan or proves you can carry it alone.
1. Fix the buyout number. The settlement agreement states what you owe your ex and sometimes a refinance deadline. The lender uses that figure.
2. Size the loan. The new loan must cover the old payoff, the equity payment, and closing costs. Divide that total by the appraised value, then compare it to the cash-out ceiling for the final loan amount.
3. Qualify alone. You carry the new loan on your own income, so your ex’s income no longer helps.
4. Order the appraisal and payoff. The appraisal sets value. The payoff statement sets the old balance.
5. Sequence title and funds. The deed transfer and the payoff should happen together. If the loan closes before the deed moves, you owe on a home you do not yet own.
6. Release the old note. The payoff of the joint mortgage is what frees your ex. Keep the payoff confirmation with your divorce records.
How the income step works
A federal compliance guide from the CFPB lists bank statements among the records a lender may use to verify income, and it rules out stated income. It also says the deposits a lender relies on must be your own income. You can read that in the CFPB ATR/QM compliance guide. So a bank statement loan is documented underwriting. It is not a no-paperwork loan.
Here is how the programs in the network calculate it:
- The lender reviews 12 or 24 consecutive months of personal or business statements. The bank program uses 12.
- Business statements require at least 25% ownership of the business.
- Qualifying income is eligible deposits divided by the number of statement months, after an expense ratio.
- 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 can supply a ratio instead.
- A profit-and-loss method is also available, capped at 80%.
- Transfers from your own business into your personal account count in full. Unexplained deposits and statements with gaps do not help you.
- Transaction histories never replace statements.
Lendmire’s piece on super jumbo bank statement cash-out requirements after one year self-employed covers the shorter-history case in more detail.
The asset paths
Some borrowers have more liquid assets than steady deposits. Two asset-based paths exist through select wholesale programs. Asset allowance divides liquid assets by 36, 60 or 84 months to create income. Assets-only needs no debt-to-income ratio, but U.S. liquid assets must equal 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 59½ and older. Business funds, gifts, cryptocurrency and unvested stock never count.
How Much Can You Cash Out on a Primary Residence?
Cash-out leverage on a primary residence steps down as the loan grows, from the highest ceilings on smaller loan amounts to much lower ceilings at the largest sizes. The bands below are loan amounts, not purchase prices, so work out your total loan first and then read the band it lands in. All figures are ceilings through select wholesale programs, subject to full underwriting.
| Loan band | Cash-out LTV, primary residence | Program |
|---|---|---|
| $300K–$1M | 80% | Portfolio program |
| $1M–$1.5M | 80% | Portfolio program |
| $1.5M–$2M | 75% | Portfolio program |
| $2M–$2.5M | 70% | Portfolio program |
| $2.5M–$3M | 70% | Portfolio program |
| $3M–$3.5M | 65% | Portfolio program |
| $3.5M–$4M | 65% | Portfolio program, super-jumbo overlays |
| $4M–$5M | 60%, on review | Bank program |
| $5M–$6M | 55%, on review | Bank program |
| $6M–$10M | 55%, on review | Bank program |
| $10M–$20M | 50%, on review | Bank program |
| $20M–$30M | 50%, on review | Bank program |
The portfolio program stops at $6,000,000, and the bank program carries the ladder to $30,000,000. Each cell shows the best available leverage in that band, so treat the figures in the “on review” rows as starting points.
Credit scores work band by band. From $300,000 to $1,000,000, the top cash-out cell needs a 680 score or better, and from $1,000,000 to $1,500,000 it needs 700 or better. From $1,500,000 to $3,500,000 it needs 720 or better, and from $3,500,000 to $4,000,000 it needs 760 or better. A lower score takes a lower cell in the same band. The portfolio program’s floor is 660 up to the super-jumbo line and 700 above it. The bank program keeps its own 680 floor at every size.
Second homes and investment properties follow their own ladders. Read every figure from the ladder for that occupancy, never by subtracting from the primary-residence number.
Overlays, cash-out caps and reserves
Above $3,500,000 on a primary residence, extra 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 at most;
- no use of cash-out proceeds to satisfy reserves.
On the portfolio program, cash-out proceeds are unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash-in-hand at $1,500,000. The bank program has no published cap. Confirm before submission whether a program counts the equity payment to your ex toward that cap. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Reserves are 3 months of payments 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. Interest-only is a structure choice and never raises a cash-out ceiling.
Worked Example: Does the Buyout Fit Under the Cap?
These are modeled assumptions, not market data. Say your home appraises at $2,400,000 and you keep it as your primary residence.
In the first case, the old payoff equals 45% of the appraised value. The equity payment to your ex equals 22%. Together that is 67%, which leaves about three points of value for closing costs. That loan lands in the $1,500,000 to $2,000,000 band. The primary-residence cash-out ceiling there is 75%, and the top cell needs a 720 score. The file fits, subject to income and underwriting.
In the second case, the old payoff is still 45%, but the buyout is 35%. That totals 80% before costs. The loan sits in the same band with the same 75% ceiling, so the file misses by five points or more.
You have a few levers in the second case. You can pay part of the buyout from other assets or trade it against other property in the settlement. You can negotiate the figure down. You can also have the loan reviewed on the assets-only path if your liquid assets are large enough. A lower credit score would also push you into a lower cell, which tightens the fit further.
Sequence matters here too. If a decree sets a refinance deadline, test the loan size against the ceiling before you agree to the buyout figure.
Where the Rule Breaks: Edge Cases
The home is a rental. If you keep a rental from the divorce, the loan changes shape. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A DSCR cash-out qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, not on your personal income. Select lenders in the network offer programs below 1.00 coverage, with LTV and terms adjusting. A buyout funded by cash-out raises the balance, which lowers coverage, so test that ratio before you agree to a number. If an LLC will hold title, that is subject to lender program eligibility, and the buyout may be a membership assignment instead of a deed transfer.
A HELOC instead of a refinance. A home equity line leaves your ex on the first mortgage. It may not satisfy a decree that requires a refinance, and it does not release anyone.
Assumption with release. This keeps the existing first loan in place with only you on it. It does not fund an equity payment, and the servicer has to agree.
Large buyouts. On loans above $3,500,000 on a primary residence, cash-out proceeds cannot satisfy reserves. You need liquid funds beyond the loan. Because the bank program is the more common route at that size, expect case-by-case review.
Title and state rules. If the refinance closes before the deed transfers, you hold the loan without title. Community-property and homestead rules differ across states and can change cash-out terms. Have your divorce attorney confirm the sequence, and the attorney or a tax professional can review the settlement itself. Tax treatment varies; consult a qualified professional.
Bank Statements or DSCR: Which Fits Which Property?
Match the program to the property. Use bank statements on the home you live in and DSCR on the rentals. A bank statement loan reads your deposits, your credit and your debt-to-income ratio, which can reach 50%. A DSCR loan reads the rent against the payment. Many investors who are self-employed use both. Declining deposits can hurt a bank statement file, while strong rent on a property can carry a DSCR file on its own.
Lendmire’s complete DSCR loans guide explains the rental side. For the personal-residence side, Lendmire’s article Does a Bank Statement Cash-Out Refinance Make Sense After a Divorce Buyout? weighs the tradeoffs.
What to Gather Before You Apply
- The divorce decree or settlement agreement, with the buyout amount and any refinance deadline.
- A current payoff statement for the joint mortgage.
- Twelve or 24 consecutive months of personal or business bank statements.
- Proof of at least 25% ownership if you use business statements.
- An accountant’s expense ratio letter or a profit-and-loss statement, if you use those methods.
- Statements for liquid assets and retirement accounts if you use an asset path.
- Proof of citizenship or permanent residency, for loans above the super-jumbo line.
- Homeowners insurance details for the property.
Four Things People Get Wrong
- The decree removes my ex from the mortgage. It does not. Only the payoff, an assumption with release, or a refinance does.
- A bank statement loan needs no documents. It needs more bank records than most loans, and the deposits must be yours.
- The buyout gets agency-style limited cash-out treatment. Most non-QM programs apply the regular cash-out ceiling.
- A HELOC takes my ex off the loan. It leaves the first mortgage untouched.
When This Does Not Work
If the buyout exceeds the cash-out ceiling, cover the gap with other assets or renegotiate the number. If deposits are thin, the P&L or asset paths may fit better. If you are above $4,000,000, expect every figure to move on review. If a lender declines, ask which cell or overlay missed.
Frequently Asked Questions
Do large banks offer a super jumbo bank statement cash-out refinance after a divorce?
Large retail banks often limit bank statement options at this size. The loans that fit usually come from portfolio non-QM and bank portfolio programs reached through a wholesale network. A broker matches your deposits, loan size and property to the program that fits.
How much can I cash out on a primary residence?
Through select wholesale programs, the ceiling is 80% on a cash-out refinance of a primary residence for loans up to $1,500,000, stepping down to 75% from $1,500,000 to $2,000,000, then lower as the loan grows. Above $4,000,000, leverage is reviewed case by case before submission.
Does the divorce decree take my ex off the mortgage?
No. A decree assigns the home between you, but the lender was not part of the divorce. Your ex stays liable until the old loan is paid off or released. A buyout refinance accomplishes that when the old note is paid at closing.
Can business deposits count as income?
Yes, in two ways. Business statements require at least 25% ownership, and income is eligible deposits after an expense ratio. Transfers from your own business into your personal account count in full on the programs in the network.
Do I need tax returns?
Not for the bank statement path. Bank statement programs review the file on documented deposits, an accountant’s ratio or a profit-and-loss method, subject to lender guidelines. DSCR loans on rentals qualify primarily on property-level rental income covering the payment.
Talk Through the Numbers
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’s 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. All programs are available through select wholesale programs, subject to full underwriting, and nothing here is a commitment to lend.
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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References
2. CFPB ATR/QM Small Entity Compliance Guide
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: Best Super Jumbo Bank Statement Cash-Out Refinance Program After a Divorce Buyout · How Lenders Underwrite a Super Jumbo Bank Statement Cash-Out Refinance With 1099 Income · Can You Get Approved for a Super Jumbo Bank Statement Cash-Out Refinance Through a Broker?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.