Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The Quick Read: The best program for a large-balance cash-out refinance depends on loan size, credit, coverage, and how much liquid cash sits outside the deal. Across Lendmire’s wholesale network, the subject property typically needs 6 months of reserves, and cash-out proceeds never count toward them, subject to underwriting.
- Reserves run 6 months of PITIA on the subject property, and 12 months for first-time investors.
- Cash-out stops above $3,000,000, and above $1,500,000 it is tighter still.
- Credit of 660 is the typical floor, rising to 700 above $3,000,000.
- Two appraisals are typically required above $2,000,000.
- Above $4,000,000, every request is reviewed case by case and is limited to purchase or rate-and-term.
Nothing here is a commitment to lend.
What Counts as Super Jumbo in DSCR Lending?
Super jumbo means a loan balance beyond the standard DSCR program, which stops at $3,000,000. Lendmire’s wholesale network carries qualified investors past that line, with loans from $150,000 to $10,000,000 through select programs. 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 loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. The coverage ratio is monthly rent divided by the monthly payment, which includes principal, interest, taxes, insurance, and any HOA dues. The full mechanics sit in Lendmire’s complete DSCR loans guide.
Key Terms Defined
- Super jumbo: a loan above the standard program ceiling of $3,000,000.
- Reserves: liquid funds held after closing, counted in months of the payment.
- PITIA: principal, interest, taxes, insurance, and association dues.
- ITIA: the same payment on an interest-only loan, without principal.
- Cash-out proceeds: the new loan minus payoff, costs, and any prepayment charge.
- LTV: the loan as a share of the property’s appraised value.
How Do Reserves Work on a Super Jumbo Cash-Out?
Reserves are measured on the subject property only. The typical requirement is 6 months of PITIA, or ITIA on an interest-only loan. First-time investors typically need 12 months. Programs in the network do not add extra reserves for other financed properties, and a borrower can carry up to 20 financed properties.
Investors Paradise reports non-QM reserves of 3 to 12 months of PITIA, rising with loan size, lower credit, short-term rental income, or many financed properties. The network figure above is the one that applies to files placed through Lendmire.
A common trap is the proceeds. Some lenders elsewhere may let cash-out count toward reserves. In this network it never does. A borrower who plans to refinance, then park the proceeds as reserves, will not clear. Reserves must already sit in seasoned, documented accounts outside the deal.
A Worked Reserve Check
Say an investor refinances a $2,000,000 loan on an interest-only structure. The reserve test is six months of the interest-only payment, held in verified liquid assets. The payoff of the old loan and the closing costs come out of the new loan first, so the check the investor receives is smaller than the leverage ceiling suggests. Those proceeds can fund the next purchase. They cannot be counted twice.
What Leverage Applies at Each Loan Size?
Leverage steps down as the loan grows. These are ceilings at 1.00 coverage or higher, through select wholesale programs, subject to underwriting. Cash-out figures apply to the loan amount, not the purchase price.
| Loan band | Purchase / rate-term | Cash-out |
|---|---|---|
| $150K–$1M | 80% | 75% |
| $1M–$1.5M | 75% | 70% |
| $1.5M–$2M | 75% | 60% |
| $2M–$3M | 75% | 60% |
| $3M–$4M | 65% | — |
| $4M–$6M | 60% on review | — |
| $6M–$10M | 60% on review | — |
Above $4,000,000, every request is reviewed case by case before submission, and only purchase or rate-and-term is available. Credit needs scale with the top cell. The top leverage in the first band needs 660 or better. The $1M–$1.5M band needs 700 at its top leverage. The $1.5M–$2M and $2M–$3M bands need 720 for their top cell. The bands from $3M up need 700. A lower score takes a lower leverage cell within the same band.
Cash-out proceeds are also capped. Proceeds are unlimited at or below 60% LTV. Above 60%, they are capped at $1,500,000. Borrowers at 680 credit or below get no cash-out above $1,500,000. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
What Other Gates Bind Before Reserves Do?
Reserves are often not the first constraint. Check these in order.
1. Loan size. Cash-out ends above $3,000,000. A larger need means a different structure, such as a rate-and-term refinance.
2. Coverage. A coverage ratio of 1.00 earns full leverage. Coverage from 0.75 to 0.99 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting.
3. Credit. The floor is 660, rising to 700 above $3,000,000. That overlay also requires 0x30x24 and 48-month event seasoning. It is open to citizens and permanent residents only.
4. Property. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one. Up to twenty acres is allowed on loans to $3,000,000.
5. Appraisals. Two appraisals are typical above $2,000,000.
6. Reserves. The final test, and the one borrowers most often plan for last.
A cash-out re-tests coverage. A bigger loan means a bigger payment, so a rental that passed at purchase can miss after the draw. Lowering the draw is the cleanest fix.
How Do Interest-Only and Short-Term Rental Files Change the Math?
Interest-only runs 120 months on 30- and 40-year terms, with a 75% maximum, coverage of 0.75 or better, and qualification on ITIA. That lowers the monthly test, and the reserve test is on the same interest-only payment. Every figure here varies by lender and program, since guidelines, property type, leverage, and credit profile all apply.
Short-term rentals are tighter. They need coverage of 1.00 or higher, loans to $2,000,000, and an experienced investor (twelve months owning income property in the last thirty-six). Income is twelve months of operating history on a refinance, counted at 80% of gross. Municipal permission must be documented for the specific property. Short-term rental rules are set locally and change, and can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
For rent evidence, appraisers typically use Fannie Mae’s Form 1007 rent schedule on one-unit properties. Per the Selling Guide, Form 1025 covers two- to four-unit properties. Those are appraisal forms only. They do not set DSCR loan terms.
What Should You Prepare to Document Reserves?
Plan liquid assets before the file goes in.
1. Asset statements. Seasoned, documented accounts that cover the reserve months on the subject property.
2. Entity documents. Entity vesting is welcome, with no layered entities.
3. Rent evidence. The lease or operating history, plus the appraisal’s rent opinion.
4. Payoff statement. It sets the starting point for net proceeds.
5. Reserve sourcing. Funds should be traceable. Proceeds from the new loan are not a source.
A DSCR file skips W-2s and pay stubs but still reviews reserves, the appraisal, and market rent. Clearing the coverage test is also not the same as positive cash flow. Approval is not profitability, since management, repairs, vacancy, and capex cut real cash flow.
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.
How Do You Pick the Best Program for Your Situation?
The best program for your situation is the one whose gates you clear in order. A broker that shops multiple wholesale lenders matches the scenario to the program. Run the decision this way:
- Need above $3,000,000? Cash-out is off the table. Look at rate-and-term.
- Coverage below 1.00? Select programs exist, with reduced leverage, to $2,000,000.
- Credit below the top-cell score? Expect a lower leverage cell in the same band.
- Liquidity thin? The reserve requirement is the binding constraint. Build it before applying, not from proceeds.
- Short-term rental? Check the $2,000,000 limit and the operating history first. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
The lenders that write a given file depend on size, property type, credit profile, and documentation. For adjacent questions, Lendmire’s guide to DSCR loan requirements for cash-out refinance covers the standard-size case.
Frequently Asked Questions
Do cash-out proceeds count toward reserves on a super jumbo DSCR loan?
No. In Lendmire’s wholesale network, cash-out never satisfies reserves. Some lenders elsewhere may treat it differently, but a plan that depends on it will not clear here. Hold reserves in seasoned accounts outside the deal.
How many months of reserves are typical?
Typically 6 months of PITIA on the subject property, or ITIA if the loan is interest-only. First-time investors typically need 12. Programs here do not add reserves for other financed properties, subject to underwriting.
What is the largest super jumbo cash-out available?
Cash-out stops above $3,000,000. Between $1,500,000 and $3,000,000, cash-out runs to 60% LTV, and borrowers at 680 credit or below get no cash-out above $1,500,000. Larger loans move to purchase or rate-and-term, reviewed case by case above $4,000,000. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Can a rental with coverage below 1.00 still qualify?
Sometimes. Select programs in the network accept coverage from 0.75 to 0.99 up to $2,000,000, but LTV and terms adjust, subject to underwriting. Coverage of 1.00 earns full leverage.
Does a DSCR loan skip documentation?
No. Qualification runs on the property’s rental income, but asset, entity, rent, and appraisal documents are still reviewed.
Next Step
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. Call 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 DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 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. Investors Paradise, non-QM for investors
2. Fannie Mae Selling Guide, B4-1.2-01
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 When the Lender Requires a Rent Roll · Best Super Jumbo DSCR Cash-Out Refinance Program With Rent Covering Only 90% of the New Payment · Can You Get Approved for a Super Jumbo DSCR Cash-Out Refinance With Six Months Reserves?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.