The Quick Read: Qualifying means fitting three limits at once: the loan size band that sets your maximum leverage, the property’s rent covering the full monthly obligation, and a credit and reserve profile that matches that band. Rolled-in closing costs sit inside the same loan and the same leverage cap. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines.
- Standard-rental cash-out leverage steps down as the loan grows: 75% to $1,000,000, 70% to $1,500,000, then 60% to $3,000,000. There is no cash-out above $3,000,000, subject to underwriting.
- Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above 60%.
- Rolling costs in saves cash at closing, but it raises the balance and lowers your coverage ratio.
- Most programs in the network want 6 months of reserves on the subject property, two appraisals above $2,000,000, and a 660 credit floor (700 above $3,000,000).
- Your equity is not your cash, because the old payoff, costs and reserves come out first.
Super jumbo loans are built for high-value rentals. Most are held in an LLC. The loan is sized by the property’s rent and its appraised value, not by your tax returns. This guide walks through how that works, how rolled-in costs change the math, and how to apply.
Key Terms Defined
Super jumbo is a lender label for very large loans. No agency defines it, and each lender sets its own line. Across the network, $3,000,000 is the common marker.
DSCR (debt service coverage ratio) is the property’s monthly rent divided by its full monthly obligation: principal, interest, taxes, insurance and any association dues. A result of 1.00 means rent matches the obligation.
LTV (loan-to-value) is the loan balance divided by the appraised value.
Cash-out refinance replaces your current loan with a larger one. You keep the difference after payoff and costs.
Rolled-in costs are closing costs added to the new loan balance instead of paid in cash at closing.
Reserves are your own liquid funds, kept after closing, that cover months of the property’s monthly obligation.
Seasoning is the minimum time you must own the property before a lender will use a new appraisal for a cash-out.
ITIA is interest, taxes, insurance and association dues. It is used instead of the full payment when the loan is interest-only.
What Changes at Super Jumbo Size
Loan size sets almost everything else. As the balance grows, leverage falls, credit expectations rise and appraisal requirements increase. Across most programs we place files with, the break points sit at $1,000,000, $1,500,000, $2,000,000, $3,000,000 and $4,000,000. Every figure below is a ceiling through select wholesale programs for an investment property at 1.00 coverage or better, 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 | — |
These are loan bands, not purchase prices. Multiply the property value by the leverage first, then read the band for the resulting loan. A property appraised at $4,000,000 refinanced at 60% lands in the $2,000,000–$3,000,000 band, and cash-out stays available. Push that same property toward a loan above $3,000,000 and cash-out disappears. The loan size decides the outcome, not the property value.
The top cell in each band needs a specific credit score. The first band’s top leverage needs 660 or better. The $1,000,000–$1,500,000 band needs 700 or better. The $1,500,000–$3,000,000 bands need 720 or better. Above $3,000,000, the top cells need 700 or better. The program floor is 660 on loans to $3,000,000 and 700 above that. A lower score takes a lower leverage cell inside the same band.
What Do You Need to Qualify?
You need six things: enough rent coverage, the right credit score, reserves, an eligible property, enough ownership time and a clean entity structure. Each one is checked on its own, and the tightest one decides your loan.
Coverage. A 1.00 ratio earns full leverage. Coverage from 0.75 to 0.99 is a real path through select programs up to $2,000,000, but LTV and terms adjust, subject to underwriting. Above $2,000,000, plan on 1.00 or better.
Credit. The 660 and 700 floors above are the starting point. A score of 680 or below gets no cash-out on loans above $1,500,000.
Reserves. Most programs want 6 months of PITIA (principal, interest, taxes, insurance and dues) on the subject property. Interest-only loans count ITIA instead. First-time investors typically need 12 months. Programs in the network ask for no extra reserves on your other financed properties, and you can carry up to 20 financed properties. Cash-out proceeds never count toward reserves.
Property. One to four units qualify. The network allows warrantable and non-warrantable condos, with non-warrantable condos limited to 75% and $1,500,000. Above $3,000,000, rural property is excluded, and a non-rural property can have no more than ten acres. Up to $3,000,000, acreage can run to twenty acres.
Seasoning. Cash-out typically carries about six months of ownership, measured from title recording. Inside that window, the loan is typically sized on the lower of appraisal or your cost basis.
Entity. Vesting in an LLC is welcome, subject to lender program eligibility. Layered entities are not.
How Rolled-in Costs Work (and What They Cost You)
Rolling closing costs into the loan means you bring less cash to the table. The price is a bigger balance and a thinner coverage ratio. Those costs sit inside the same LTV cap and the same rent test as everything else.
The basic cash math is simple. Cash to you equals the new loan, minus the old payoff, minus closing costs. If you pay costs out of pocket, the loan is smaller, and you write a check at closing. If you roll them in, the loan grows to carry them.
Here is the catch. At your maximum leverage, rolling in costs does not create extra cash. The cap is the cap. The costs simply come out of the same pool of proceeds, so your net cash is lower than the headline number suggests.
Rolling in also pushes on three other things:
- Coverage. A larger balance means a larger monthly obligation against the same rent.
- The leverage cap. The financed costs count toward LTV. If they push you past 60%, the $1,500,000 proceeds cap applies.
- The size band. The total note amount may decide which band you fall in, but programs differ on how they count financed costs. Ask the lender how they are counted before you set the loan amount, especially near the $2,000,000 and $3,000,000 lines.
A simple test helps. Roll costs in when your coverage has room and the extra balance does not cross a band line or the 60% mark. Pay them separately when coverage is tight or you sit just under a boundary.
Payoff-only refinances are different. When you refinance short-term or hard-money debt, costs, per diem interest and payoff fees can often be rolled in without creating cash-out. Cash left over after those items is what makes it a cash-out. Classification varies by lender, so confirm it before the appraisal is ordered.
A Worked Example: Rolled In Versus Paid at Closing
Consider an investor with a luxury long-term rental appraised well above $3,000,000. The investor wants a cash-out at 60% LTV, which keeps the loan inside the $2,000,000–$3,000,000 band. These are modeled assumptions, not market facts. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Paid at closing. The loan sits at the 60% ceiling. Proceeds are unlimited at or below 60%. The investor writes a check for the costs, keeps the full net proceeds, and coverage clears roughly 1.2x.
Rolled in. The loan is built to cover costs too, but the 60% cap does not move. To stay under it, the loan stays the same size, so the costs come out of proceeds. Net cash falls. If the investor instead raises the loan above 60% to protect cash, the $1,500,000 proceeds cap applies, and coverage slides toward 1.1x.
Neither path is wrong. The right one depends on whether you value cash on hand at closing or a lower balance and a stronger ratio. Passing the coverage test is also not the same as positive cash flow. The ratio compares rent to the obligation only, not to your other costs of running the property.
The break-even appraisal is another useful check: payoff plus exit costs, divided by the leverage cap. If the appraisal lands below that number, the file turns from a cash-out into a cash-to-close refinance.
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 to Apply, Step by Step
1. Set the target loan and band. Pick leverage first, then read the band. Needs: a rough value, current payoff and the leverage cell you are aiming for. Can stop the file: a loan that crosses $3,000,000, where cash-out ends.
2. Check coverage. Estimate rent against the full obligation, including taxes, insurance and dues. Needs: leases or a market rent estimate. Can stop the file: coverage below what the program allows, which can force lower leverage.
3. Confirm credit and ownership time. Needs: a current score and the title recording date. Can stop the file: a score below the band’s requirement, or ownership inside the seasoning window.
4. Line up reserves. Needs: verified liquid funds, kept separate from the proceeds. Can stop the file: reserves that rely on the cash you plan to pull out.
5. Gather entity and purpose documents. Needs: vesting documents, an ownership structure with no layered entities, and a business-purpose statement. Can stop the file: signers or members that do not match the vesting.
6. Order the appraisal and rent schedule. The appraisal sets value. A rent schedule sets the market-rent opinion. The usual forms are the 1007 for one unit and the 1025 for two to four units. These names come from Fannie Mae’s forms list, but DSCR loans are not agency products, and agency selling-guide rules do not govern them. Above $2,000,000, expect two appraisals. Can stop the file: a value below your break-even.
7. Reconcile the numbers. The lender typically uses the lower of lease rent and market rent. Check that financed costs, payoff, reserves and proceeds all fit the leverage cap. Can stop the file: a gap between the lease and the market-rent opinion.
8. Submit the new application. A refinance is a fresh application with a new appraisal, rent opinion and credit pull. Above $4,000,000, every request is reviewed case by case before submission.
For the broader program picture, Lendmire’s complete DSCR loans guide covers the basics before you size a super jumbo file.
Where the General Rule Breaks
Above $3,000,000. There is no cash-out. Your options are a rate-and-term refinance, a smaller balance, or staged debt. If you need cash from a file this large, Lendmire’s piece on a bank statement cash-out route for super jumbo balances covers a different qualification path.
The overlay above $3,000,000. It adds a 700 score, a clean 0x30x24 housing history, 48 months of seasoning after a credit event, and citizens and permanent residents only.
Short-term rentals. These files stop at $2,000,000 and need coverage of 1.00 or higher. Income is twelve months of operating history on a refinance, counted at 80% of gross, and the investor must be experienced. Municipal permission to operate a short-term rental must be documented for the specific property.
Interest-only. 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. The loan is qualified on ITIA. That lowers the monthly obligation the rent must cover, but cash-out leverage sits below that cap anyway. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Business purpose. 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. The federal rule behind that treatment, Regulation Z section 1026.3, exempts credit extended primarily for a business purpose. The exemption turns on how the property and funds are actually used. Proceeds spent on personal purposes can change how the loan is treated. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Common Mistakes
- Treating equity as cash. Payoff, costs, reserves and any prepayment charge on the old loan come out first.
- Counting proceeds as reserves. In this network, they never count. Some lenders elsewhere may allow it, so this is a lender-by-lender difference.
- Assuming after-repair value sets the loan. The lender’s own appraisal does.
- Assuming a bigger appraisal always means more cash. A low appraisal can turn a cash-out into a cash-to-close file.
- Reading less paperwork as no paperwork. You still need an appraisal, entity documents and verified reserves.
- Ignoring how financed costs are counted. Near a band line, a few extra costs can change the leverage cell.
Frequently Asked Questions
Can I roll closing costs into a super jumbo DSCR cash-out?
Usually yes, but they count inside the same loan balance and the same leverage cap. Rolling them in lowers your coverage ratio and can reduce net cash at the cap. Ask how financed costs count toward the size band before you choose the loan amount. Everything is subject to underwriting.
Do cash-out proceeds count toward my reserves?
Not in this network. Reserves must come from your own funds, typically 6 months of PITIA on the subject property, or 12 months for first-time investors. Plan where reserves come from before you apply, not after you see the proceeds.
Can I do this in an LLC?
Yes, subject to lender program eligibility. Vesting in an entity is welcome, but layered entities are not allowed. Make sure signers, members and the vesting documents match before the file goes to review.
What if I need cash-out above $3,000,000?
Cash-out is not available above $3,000,000. Lowering the requested loan so it lands at or below that line may keep cash-out in play. Otherwise, a rate-and-term refinance or a staged-debt plan is the usual route.
Does passing the coverage test mean the property cash flows?
No. Coverage compares rent to the property’s monthly obligation only. Operating costs, vacancy and repairs sit outside that ratio, so a loan can pass and still leave thin cash flow.
Compare Your Options
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. Lendmire is a broker arranging business-purpose financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Call 828-256-2183 to start. Nothing here is a commitment to lend, and every file is underwritten individually.
For how equity extraction works on an investment 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), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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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. Fannie Mae, Selling and Servicing Guide Forms
2. CFPB, Regulation Z section 1026.3
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 to Plan and Use a Super Jumbo DSCR Cash-Out Refinance to Buy Out a Partner · Best Super Jumbo DSCR Cash-Out Refinance Program to Consolidate Debt
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.