Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
The Quick Read: The best program for your situation is the one whose leverage, credit tier, and reserve rules match your property and your cash position. Across the wholesale network Lendmire works with, reserves on a super jumbo cash-out typically run six months of the subject property’s monthly obligation, and the cash-out proceeds never count toward them. Every figure below is a ceiling, subject to underwriting.
- Cash-out leverage steps down with size: 75% to $1,000,000, 70% to $1,500,000, and 60% from $1,500,000 to $3,000,000. There is no cash-out above $3,000,000.
- First-time investors carry 12 months of reserves instead of the usual 6.
- The requirement stays flat as the balance rises, and your other financed properties add nothing to it.
- Coverage of 1.00 earns full leverage. Lower coverage is a path through select programs at reduced leverage. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Lendmire is a mortgage broker. It does not lend. It shops a wholesale network and matches your file to the program that fits. For the full foundation, see the complete DSCR loans guide.
What “Super Jumbo” Means for a DSCR Loan
Super jumbo has no official definition for DSCR loans. DSCR loans are non-QM (outside standard agency mortgage rules), so each program sets its own lines. In practice, the term describes a loan balance past the standard program’s $3,000,000 ceiling. Cash-out is not available above $3,000,000, so any cash-out request must come in at or below that size, subject to underwriting.
The portfolio investor ladder we place files on runs from $150,000 to $10,000,000. Short-term-rental files and no-ratio files stop at $2,000,000. Between $3,000,000 and $4,000,000, the ladder carries set figures for purchase and rate-and-term loans only. Above $4,000,000, every request is reviewed case by case before submission, for purchase or rate-and-term only, and the figures there are stated on review.
The debt service coverage ratio (DSCR) is monthly rent divided by the full monthly obligation. That obligation is principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.00 means rent covers the whole payment. These loans are designed for non-owner-occupied investment properties, and because they are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
Key Terms Defined
- Cash-out refinance: a new loan larger than the one it replaces, with the difference paid to you after payoff and costs.
- Reserves: liquid cash you keep after closing, measured in months of the property’s monthly obligation.
- PITIA: principal, interest, taxes, insurance, and association dues. On an interest-only loan, the measure is ITIA, with no principal.
- LTV: loan-to-value, the loan balance as a percentage of appraised value.
- Non-QM: loans that sit outside standard agency mortgage rules and follow each program’s own guidelines.
- Seasoning: a required waiting period, such as the time since a credit event.
How the Underwriting Works, Step by Step
Step 1: Loan size sets the track. The new loan amount decides which band you sit in. Bands are loan amounts, never purchase prices. Multiply value by leverage first, then read the band for that loan.
Step 2: Leverage. Here is the full ladder for a DSCR of 1.00 or higher, through select wholesale programs and 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 | — |
Separate from the band ceilings, cash-out proceeds are unlimited at or below 60% LTV. Above 60% LTV, proceeds are capped at $1,500,000. The 75% cash-out ceiling applies only in the smallest band, and the 70% ceiling applies to loans from $1,000,000 to $1,500,000. Read the band for your new loan amount before you plan the draw. The exact numbers vary by program and follow a full review of property, leverage, and credit.
Step 3: Credit. The program floor is 660 on loans to $3,000,000 and 700 above $3,000,000. The top leverage cell in each band needs a particular score: 660 in the smallest band, 700 from $1M to $1.5M, and 720 from $1.5M to $3M. A lower score drops you to a lower leverage cell in the same band. A further limit applies to credit of 680 or below, which gets no cash-out on loans above $1,500,000.
Step 4: Valuation and rent. Loans above $2,000,000 need two appraisals. The lower value usually sizes the loan, and the two are not averaged. Rent comes from the appraiser’s market rent schedule. The forms involved are Form 1007 for a single-family rent schedule and Form 1025 for a small residential income property, as listed in Fannie Mae’s forms library and described in Selling Guide B4-1.2-01. Those citations cover the form names only. They do not set rules for DSCR programs.
Step 5: Coverage. A 1.00 ratio earns full leverage. Pulling more cash enlarges the new payment and lowers the ratio, so trimming the draw is the cleanest fix. 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. Through a handful of lenders in the network, a no-ratio path also reaches $2,000,000 for borrowers with a seven-year clean housing history and 0x30x24 payment history, subject to underwriting and within that envelope of leverage, credit, and reserves.
Step 6: Documents. Expect asset statements for reserves, entity documents, the current lease or operating history, and the payoff statement. A short-term-rental refinance adds twelve months of operating history.
Step 7: The cash waterfall. The new loan, minus your payoff, minus closing costs, equals cash to you. Reserves are a separate test.
How Reserves After Closing Work
Reserves are a second pile of cash, and the first pile cannot fund it. Cash-out proceeds never satisfy reserves on this ladder. A refinance that nets you a large check adds nothing toward the requirement.
Here is what the rule looks like on a typical file:
- Amount: 6 months of PITIA on the subject property. First-time investors typically carry 12 months.
- Interest-only loans: the measure is ITIA, since there is no principal in the payment. The program offers a 120-month interest-only period on 30- and 40-year terms, to 75% maximum LTV, with coverage of 0.75 or better, qualified on ITIA.
- Other properties: no extra reserves for other financed properties. Up to 20 financed properties are allowed.
- Loan size: reserves do not scale up as the balance rises on this ladder.
- Above $3,000,000: the 700 credit overlay applies, with 0x30x24, 48-month event seasoning, citizens and permanent residents only, no rural property, and ten acres maximum.
Plan reserves before you apply. If your liquid assets sit mostly in the property you are refinancing, the equity pull will not help you. Reserves have to come from assets you already hold outside the transaction. Because reserves are cash you cannot spend, they reduce your real take-home from the deal.
Which Program Fits?
The best program for your situation depends on property type, credit profile, leverage need, and documentation. The lenders that write this depend on those same inputs. No single program wins on every axis, so a broker compares several.
Run through these questions:
1. Do you need cash-out above $3,000,000 in loan size? Not available on this ladder. Your options are a rate-and-term refinance, a smaller balance, or staging the equity pull.
2. Is your credit at 680 or below? Cash-out above $1,500,000 is closed to you. A smaller draw may still work.
3. Is the property a short-term rental? Files reach $2,000,000, require coverage of 1.00 or higher, and need experienced investors (twelve months owning income property in the last thirty-six). Income counts at 80% of gross, using twelve months of operating history on a refinance. 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. Municipal permission is documented for each specific property.
4. Is the property rural or on acreage? On loans to $3,000,000, acreage up to twenty acres is allowed, and rural collateral of five acres or less reaches 75%. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one.
5. Is it a condo? Warrantable and non-warrantable condos qualify, with non-warrantable capped at 75% and $1,500,000.
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.
Worked Example: Where Coverage Gets Tested
Say you own a luxury rental appraised at $2,800,000, held in an LLC (subject to program terms). You want cash-out. Multiply first: 60% of the value puts the new loan at roughly $1,700,000, which sits in the $1.5M–$2M band, where the cash-out ceiling is 60% LTV. Because that loan is under $2,000,000, the two-appraisal rule does not apply, though a larger request would trigger it, and the lower of two values would then set the loan. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
High-priced rentals often rent for a small slice of their price. So the hard test is usually coverage, not credit. Suppose the appraiser’s market rent produces coverage near 1.05x at the 60% draw. If a bigger draw drops coverage under 1.00, you have three levers: reduce the draw, pursue a reduced-leverage path through a select program, or restructure with interest-only, which is reviewed on ITIA. Each is subject to underwriting.
Then reserves: six months of the subject’s PITIA, from assets outside the closing. If you do not have them, the cash-out does not rescue you. That is the gap people miss when they size the draw first and the reserves last.
Where the General Rule Breaks
A non-purchase-money second lien payoff. Paying one off makes the loan a cash-out even when no cash comes back. The cash-out ladder and its credit tiers then apply. If the payoff pushes the loan past $3,000,000, cash-out is no longer available.
Acreage. Excess land is usually carved out of value, which can shrink the loan you can size.
Sub-1.00 coverage. Select programs reach $2,000,000 at reduced leverage, subject to underwriting. Eligibility review depends on lender guidelines, credit approval, and property review.
Staging. When cash-out is blocked, a rate-and-term refinance now and an equity pull later can be a cleaner route.
Why Not a Portfolio Bank?
Large retail lenders and depository institutions typically underwrite the whole borrower: guarantor financials, liquidity, and often a deposit relationship. A DSCR program tests the property. For a high-net-worth investor with an entity and complex returns, that difference can matter.
Frequently Asked Questions
Do cash-out proceeds count toward my reserves?
No, not on this ladder. Reserves must come from assets outside the transaction. Some lenders elsewhere treat this differently, but the programs described here do not, so keep separate liquid assets on hand.
How many months of reserves will I need?
Typically six months of PITIA on the subject property, or twelve months for first-time investors. On interest-only loans, the measure is ITIA. Reserves do not rise with the loan size on this ladder, subject to underwriting.
Do I need reserves for my other rental properties?
No extra reserves apply for other financed properties, and up to 20 financed properties are allowed. Reserves are tested on the subject property only.
What is the maximum cash-out on a super jumbo DSCR loan?
Cash-out is 75% to $1,000,000, 70% to $1,500,000, and 60% to $3,000,000. There is none above $3,000,000. Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above it. All figures are ceilings, subject to underwriting and a full review of property type, leverage, and credit.
Can I qualify with coverage under 1.00?
Select programs offer a path from 0.75 to 0.99 up to $2,000,000, but LTV and terms adjust, subject to underwriting. A no-ratio path also exists through a handful of lenders in the network, to $2,000,000, for borrowers with a seven-year clean housing history and 0x30x24, subject to underwriting.
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. Business-purpose financing is arranged in 41 markets, including Washington, D.C. Nothing here is a commitment to lend, and tax treatment varies; consult a qualified professional.
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 DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 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. Fannie Mae Selling & Servicing Guide Forms
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 on an Investment Property · Best Super Jumbo DSCR Cash-Out Refinance Program With Low Fees and Low Closing Costs
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.