The Quick Read: The best program for your situation is the one whose loan band, leverage cap, and credit floor match the balance you need, and on a cash-out that band stops at $3,000,000 in the wholesale network Lendmire works with. Cash-out leverage steps down as the loan grows, so the amount you can pull for a down payment depends on loan size, not just property value. Lendmire is a mortgage broker, so it shops this against several wholesale programs rather than offering one.
- Cash-out leverage steps down from 75% at the smallest loans to 60% at the top of the cash-out range, and above $3,000,000 there is no cash-out. The ladder below gives each band.
- Coverage of 1.00 earns full leverage. Select programs reach 0.75 to 0.99 at reduced leverage, and LTV and terms adjust, subject to underwriting.
- Typical credit floor is 660, rising to 700 above $3,000,000. Two appraisals apply above $2,000,000.
- Cash-out never counts toward reserves. Six months on the subject property is typical.
- A purchase with the proceeds typically needs a 20-25% down payment, and every figure here is subject to underwriting.
What “Super Jumbo” Actually Means
Super jumbo has no official definition. The conforming loan limit is set by the FHFA under a formula in its 2026 conforming loan limit addendum, which caps high-cost local limits at 50% above the baseline. The baseline is $832,750, and the one-unit ceiling in high-cost areas is $1,249,125, per the FHFA announcement.
Those limits don’t cap a DSCR loan. These are business-purpose investor loans, reviewed differently from a standard owner-occupied mortgage, and each lender draws its own super jumbo line. Across the network, the portfolio program runs from $150,000 to $10,000,000. The standard program stops at $3,000,000, and this ladder carries qualified investors past it. Scotsman Guide notes that a non-QM jumbo can reach $3 million or more.
For a complete walkthrough of how these loans work, see Lendmire’s complete DSCR loans guide.
How Underwriting Treats a Super Jumbo Cash-Out, Step by Step
The file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Here is the sequence.
1. Value is set by appraisal. On 1-4 unit rentals, the appraiser typically adds a rent schedule form, Form 1007 for single-family or Form 1025 for 2-4 units. Above $2,000,000, two appraisals apply.
2. The requested loan amount picks the band. The band, not the property value, sets the leverage cap and credit needs. Compute price times leverage first, then read the band for that loan.
3. Coverage is tested on the new, larger payment. A cash-out raises the balance, so the property has to clear the coverage test at the new number. Monthly rent divided by the full monthly obligation (principal, interest, taxes, insurance, and any HOA dues) gives the ratio.
4. Net proceeds are calculated. Net equals the new loan minus the payoff, costs, and any prepayment penalty on the old loan. The net number funds the next property.
5. The cash is seasoned and traced. The next lender will want to see where the money came from, so keep it funded and documented before the purchase.
6. The proceeds fund the next purchase. That purchase is a separate loan with its own approval.
This is two files and two decisions, not one. The refinance creates cash. The next lender decides whether to accept it and how much down payment it wants.
The Leverage Ladder (Where Cash-Out Shrinks)
Cash-out per dollar of loan falls as the balance rises. Purchase and rate-and-term leverage also step down, which matters if you compare cash-out against other routes. These are ceilings at 1.00 coverage or better, on investment property, subject to underwriting.
| Loan band | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| $150K-$1M | 80% | 80% | 75% |
| $1M-$1.5M | 75% | 75% | 70% |
| $1.5M-$2M | 75% | 75% | 60% |
| $2M-$3M | 75% | 75% | 60% |
| $3M-$4M | 65% | 65% | — |
| $4M-$6M | 60% on review | 60% on review | — |
| $6M-$10M | 60% on review | 60% on review | — |
Credit works by band, too. The top cash-out cell needs a score of 660 in the lowest band, 700 in the $1M-$1.5M band, and 720 across the $1.5M-$3M range. Those scores are what the top leverage needs, not the program floor. The floor is 660 on loans to $3,000,000 and 700 above it. A lower score takes a lower leverage cell within the same band.
Cash-out proceeds are unlimited at or below 60% LTV. Above 60% LTV, proceeds are capped at $1,500,000. Credit of 680 or below gets no cash-out on a loan above $1,500,000. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The $3,000,000 Cliff
The cliff is the structural surprise to plan around. Picture a $4,000,000 rental. At 60% leverage, the loan is under $3,000,000 and cash-out is available. At 80%, the loan would be above $3,000,000, where cash-out is not offered at all. (Eighty percent is also not available on any loan above $1,000,000.) Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
So when a request creeps past the line, three paths usually make sense:
- Trim the loan to fit a band.
- Switch to a rate-and-term refinance, which carries different leverage but no cash-out.
- Stage the debt across more than one property.
This is why “best program” is a sizing question first. A program with a higher headline leverage number is useless if your loan lands in the wrong band.
Sizing the Cash-Out Backward From the Next Down Payment
Start with the next purchase, not the old property. A purchase typically needs a 20-25% down payment, which is the target the cash-out must hit after costs. A gross cash-out near 25% of the old property’s value roughly matches a 20-25% down payment on a similarly priced rental. That is a rule of thumb, not a promise, and net proceeds will land lower.
Work the problem in this order:
1. Pick the target purchase price and down payment percentage.
2. Estimate net proceeds needed, adding closing costs and a reserve cushion on the new property.
3. Check which band and leverage cell on the old property can produce that amount.
4. Test whether the old property still clears coverage at the larger balance.
Reserves deserve their own flag. Reserves are typically six months on the subject property, or twelve for first-time investors, and cash-out proceeds never count toward them. If you plan to drain every dollar of equity into the next down payment, the reserves have to come from somewhere else. Up to 20 financed properties are allowed, with no extra reserves required for the others.
Where the General Rule Breaks
Coverage below 1.00. Select programs reach 0.75 to 0.99 at reduced leverage, to $2,000,000, with LTV and terms adjusting, subject to underwriting. Scotsman Guide also notes that some non-QM lenders will lend below 1.0 when other assets offset the shortfall. Reduced leverage here means less cash-out, which can defeat the down-payment purpose.
Interest-only runway. A 120-month interest-only period is available on 30- and 40-year terms, up to 75% leverage with coverage of 0.75 or better, qualified on interest, taxes, and insurance. It lifts coverage on the larger balance. It is a structural choice, though, not free money. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Short-term rentals. These qualify on documented operating history at a discount to gross rent, to $2,000,000, and not on the no-ratio path. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Lendmire covers that lane in its piece Best Short-Term Rental Cash-Out Refinance Program as a Down Payment on Another House.
Prepayment penalties. If the old loan is itself a DSCR loan, an early payoff can carry a penalty that comes straight out of net proceeds. Check it before you model the refinance.
Rural and acreage. Above $3,000,000, no rural property is allowed, and no more than ten acres on a non-rural one. Up to $3,000,000, rural collateral reaches 75% and acreage up to twenty acres.
Credit overlay above $3,000,000. Credit of 700 or better is needed, with 0x30x24 housing history, 48-month event seasoning, and citizens or permanent residents only.
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.
Is the Next House an Investment or a Home?
DSCR is business-purpose financing for non-owner-occupied investment property. It is not available on a primary residence, either as the collateral for the cash-out or for the house you plan to live in. If the next house is a rental, the structure above applies. If it is a home you will occupy, the cash-out can still be a source of funds, but the purchase loan is a different product with its own documentation, and you will need to discuss it with the lender for that purchase.
Key Terms Defined
Super jumbo: A loan large enough that lenders treat it outside normal jumbo pricing and guidelines, with no official dollar definition.
DSCR: Debt service coverage ratio, meaning monthly rent divided by the full monthly obligation on the property.
Cash-out refinance: A new, larger loan that pays off the old one and delivers the difference as cash.
Net proceeds: The cash left after payoff, costs, and any prepayment penalty.
Seasoning: The time cash has been in your account before the next lender accepts it as a down payment source.
Reserves: Liquid assets, typically six months of the obligation on the subject property, held after closing.
What the Decision Looks Like in Practice
Consider an investor with a highly valued rental in the $2M-$3M loan band, a score above 720, and coverage near 1.2x. The 60% cash-out ladder applies to that band, so the proceeds are unlimited at or below 60% LTV. The investor next has to test whether those proceeds cover a 20-25% down payment on the target property, and whether reserves are separately funded. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
An investor whose loan lands just above $3,000,000 faces a different test, because cash-out is not offered there. Selling and redeploying the capital is one more route to weigh alongside the paths above.
Market backdrop matters only lightly here. Scotsman Guide reports that lenders are piling into DSCR loans as the mortgage market slows, which gives a broker more programs to compare.
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. Investors can request a quote or call 828-256-2183.
Frequently Asked Questions
Can a super jumbo DSCR cash-out fund a down payment on another house?
Yes, when the next house is an investment property, and the new lender accepts the cash. Net proceeds fund a purchase that typically needs a 20-25% down payment. The cash should be funded and traceable before the purchase closes. It is two separate loan approvals, subject to underwriting.
What is the largest loan that allows cash-out?
Cash-out stops at $3,000,000. Above that, the program offers purchase and rate-and-term only, at 65% from $3M to $4M and 60% on review above $4M. Cash-out proceeds are unlimited at or below 60% LTV, and capped at $1,500,000 above 60%. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Do cash-out proceeds count toward reserves?
No. Reserves are typically six months on the subject property, or twelve for first-time investors, and they must come from other assets. Plan the down payment and reserves as separate pools of money.
Can coverage below 1.00 still work at this size?
Sometimes. Select programs in the network reach 0.75 to 0.99 coverage to $2,000,000 at reduced leverage, with LTV and terms adjusting, subject to underwriting. Reduced leverage means less cash-out, so the down-payment goal may need a different structure.
Is the conforming loan limit a cap on these loans?
No. The conforming limit applies to agency loans, and DSCR loans are non-agency. The network’s portfolio program runs to $10,000,000 for purchase and rate-and-term, while the cash-out ladder ends at $3,000,000.
A deeper walk-through of investment-property equity extraction lives in 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 is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps.
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. FHFA 2026 Conforming Loan Limit Addendum
2. Scotsman Guide: One out of 20 mortgages are non-QM
3. Scotsman Guide: Invest in Your Future
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: How Lenders Underwrite a Super Jumbo DSCR Cash-Out Refinance to Buy Another Rental · Super Jumbo DSCR Cash-Out Refinance vs Portfolio DSCR Loan Before Selling · Best Super Jumbo DSCR Cash-Out Refinance Program With Rent Covering Only 90% of the New Payment
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.