Bank Statement Loans In Isle Of Palms — The Quick Read: Super jumbo bank statement loans qualify a borrower on deposits, not traditional personal-income documentation, and size runs from $300,000 to $30,000,000 through two different wholesale ladders. Leverage steps down as the loan gets bigger — often starting near 90% on smaller files and falling into the 55%-65% range above $4,000,000. Reserves move the opposite direction, climbing from a few months of payments to nine or twelve as the balance grows. Every file above $4,000,000 gets a manual, case-by-case look before it goes to a lender.
This program exists for one reason: traditional personal-income documentation can misrepresent actual cash flow. Take a business owner, physician, or investor with strong deposits and aggressive write-offs. They often show less taxable income than they actually have. Bank statement underwriting sidesteps that mismatch. It counts what actually landed in the account.
Key Takeaways
- Loan sizes run $300,000 to $30,000,000 across a portfolio non-QM program (to $6,000,000) and a separate bank-portfolio ladder that carries twelve-month-statement files to $30,000,000.
- Leverage on a primary residence steps down as size climbs — 90% near the bottom of the range, down to the 55%-65% band above $4,000,000, always with a higher credit floor attached.
- Second homes and investment properties run roughly five to ten points below the primary-residence figure at comparable sizes.
- Reserve requirements climb from 3 months to 9 months as loan size increases, plus 2 months per additional financed property, capped at 12 months.
- Everything above $4,000,000 is reviewed case by case before submission — there is no flat “up to” number at that size. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Key Terms Defined
Bank statement loan — a mortgage that calculates qualifying income from deposits in personal or business bank accounts instead of traditional personal-income documentation or pay stubs.
Expense factor — the percentage of gross business deposits a lender subtracts before counting the rest as income, meant to approximate the borrower’s real operating costs.
Reserves — liquid funds a borrower must have left over after closing, measured in months of housing payment, meant to cover the loan if income dips.
Leverage (LTV) — the loan amount as a percentage of the property’s value; a 75% LTV loan on a given property means the borrower puts down the other 25%. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Interest-only period — a stretch of the loan term where the payment covers interest only, with no reduction of principal, which lowers the qualifying payment during that window.
Case-by-case review — a manual underwriting process, used above a certain loan size, where a file is evaluated on its own facts rather than priced off a published grid.
How Underwriting Actually Treats the Income
Everything starts with the deposit history. On a personal account, the full deposit total is usable. On a business account where the borrower holds at least 25% ownership, an expense factor gets applied first — a fixed ratio the lender assumes covers operating costs before the rest counts as income.
Across the wholesale network Lendmire places these files through, expense ratios generally follow tiered bands: a lower ratio for a service business with no employees, a mid-range ratio for a business with a small staff, and a higher ratio for a larger workforce or any product-based company, with the specific bands varying by lender and program. A borrower whose actual costs run leaner than the fixed ratio can bring in an accountant-prepared ratio instead, or use a profit-and-loss method capped at 80% of deposits. Money the borrower transfers from their own business into a personal account counts at 100% — no haircut, because it already passed through the business books.
Lenders in this space typically use 12 or 24 consecutive months of statements. A shorter lookback favors a business with recent, rising revenue; a longer one smooths out a lumpy or seasonal year. Whatever window is used, statements have to be consecutive — a transaction history print-out never substitutes, and the most recent statement generally needs to sit within a defined window of the note date.
Credit and debt ratios sit underneath the income calculation. Most files on the portfolio program clear with a 660 credit floor and debt-to-income up to 50%, subject to underwriting; the separate bank-portfolio program typically wants a 680 floor; and once a file crosses into the super-jumbo size tiers described below, the credit floor typically moves to 700.
The Leverage Ladder — Where It Actually Steps Down
Leverage does not sit at one number across this product — it steps down in bands as the loan size climbs, and the ceiling is always subject to full underwriting.
| Loan Size | Primary | Second Home | Investment |
|---|---|---|---|
| $300K–$1M | 90% (680+ credit) | 85% (700+ credit) | 85% (700+ credit) |
| $1M–$2M | 85% (700+/720+ credit) | 80% (680+/700+ credit) | 80% (680+/700+ credit) |
| $2M–$3M | 80% (720+ credit) | 75%-80% (720+ credit) | 75%-80% (720+ credit) |
| $3M–$4M | 75% (720+/760+ credit) | 60%-65% (760+ credit) | 60% (680+ credit) |
| $4M–$6M | 60%-65% (680+ credit), case by case above $4M | 55%-65% (680+/760+ credit), case by case above $4M | 55%-65% (680+/760+ credit), case by case above $4M |
Above $10,000,000, both the primary and second-home/investment ladders typically settle into the 50%-55% range. This happens through the bank-portfolio program’s own size tiers. Lenders still review each case individually. No cell on this table represents a guaranteed number. It’s the best available ceiling through select wholesale-network guidelines. Every file remains subject to full underwriting.
Cash-out follows a different pattern. On the portfolio program, cash-out proceeds are typically unlimited at or below 60% LTV, but the amount of actual cash back is capped at $1,500,000 once leverage runs above that 60% line. The bank-portfolio program has no published cash-out cap, but naturally runs at lower leverage across the board given its own ladder.
Reserves — The Half of This Equation Everyone Underestimates
Reserves climb as loan size grows, because a bigger balance carries more absolute dollar risk with no tax-return DTI backing it up.
Typical bands across the network run 3 months of payments to $500,000, 6 months to $1,500,000, and 9 months above that. Add 2 months for every additional financed property the borrower carries, up to a 12-month ceiling. A borrower buying their first investment property — with no prior landlord track record for the lender to lean on — typically faces the full 12-month reserve requirement regardless of loan size, because reserves are standing in for the payment history the lender can’t otherwise verify.
Retirement accounts count toward reserves, but at a reduced value. Before age 59½, they typically count at 70% of the balance. That value rises once the borrower crosses that age threshold. In this network, several things generally don’t count as reserves. These include business funds, gifts, unvested stock, trusts other than a revocable living trust, and cryptocurrency. This is a real divergence from parts of the broader non-QM market. There, some programs have started accepting cryptocurrency as reserves at a discounted value, without requiring liquidation. That flexibility isn’t universal. It isn’t part of every wholesale relationship. So never assume it applies.
Two liquidity-based paths exist for a borrower who wants to lean on assets instead of, or alongside, deposits. Asset allowance divides liquid assets by 36, 60, or 84 months to create a monthly income figure — 84-month division is mandatory for any loan above $3,500,000 or for a standalone asset-based file, and it applies only to primary residences and second homes, capped at 80% LTV. Assets-only qualifies with no DTI calculation at all, provided U.S. liquid assets equal the loan amount plus closing costs plus 60 months of coverage for any net loss on other residential property the borrower owns. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
The Structures and Variations Underneath the One Product
Two separate wholesale ladders sit inside what looks like a single “super jumbo bank statement” category, and mixing them up is the most common mistake an investor makes when comparing quotes.
The portfolio non-QM program carries bank-statement files to $6,000,000 with the leverage tiers shown above. Above roughly $4,000,000, a second, separate bank-portfolio program takes over on its own ladder — 65% to $5,000,000, 60% to $10,000,000, and 55% out to $30,000,000 — using 12 months of statements rather than 24, and pricing interest-only at 60% LTV or the band’s ceiling, whichever is lower. The two programs overlap between roughly $4,000,000 and $6,000,000, which is exactly where a file needs the most careful shopping, since one ladder may clear leverage the other won’t. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Interest-only structuring is available on both programs, with different mechanics. On the portfolio program, IO reaches 85% LTV with a 700 credit floor. It’s typically structured as a 40-year term with a 10-year interest-only period. On the bank-portfolio program, IO tops out at 60% LTV. It uses 5- and 7-year fixed-period adjustables. A 10-year fixed-period adjustable on that program is fully amortizing, not interest-only.
Property type reshapes the numbers further. Warrantable condos reach 85% LTV; non-warrantable condos typically cap at 80%; condotels run lower still, around 75% on a purchase and 65% on cash-out through the portfolio program (50% on the bank program). Two-to-four unit properties reach 85%. Second homes are limited to single-unit properties only. Rural property tops out around 80% on parcels of 10 acres or less and is not available above $3,000,000. Texas home-equity transactions under Section 50(a)(6) take a 5-point leverage reduction and stop at $3,000,000 on the portfolio program.
Documentation itself can flex too. When leaner deposit history exists but strong personal or business assets sit on the balance sheet, the asset-based paths described above often outperform a deposit-only calculation — this is a real decision point, not a fallback.
Where the General Rule Breaks
The published leverage grid stops applying above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Above those thresholds, a tighter overlay kicks in regardless of what the grid otherwise shows: a 700 credit floor, a 0x30x24 housing payment history, 48 months of seasoning on any credit event, U.S. citizens and permanent residents only, no non-occupant co-borrowers, no rural property, a 10-acre maximum on any remaining acreage allowance, and — importantly — cash-out proceeds cannot be used to satisfy the reserve requirement at that size. That last point trips up more files than any other overlay item, because borrowers often plan to pull cash out and immediately count it as their post-closing cushion.
Above $4,000,000, every file across both programs moves to case-by-case review before submission, meaning the leverage and reserve figures above become a starting point for underwriting discussion rather than a locked number.
The broader non-QM market’s own performance data backs up why lenders build these deeper cushions in as size grows. Recent industry tracking on securitized non-QM pools shows loans above 80% LTV running impairment rates near 12.5%, against under 5% for loans below 60% LTV — a gap wide enough to explain why leverage compresses hard once a balance gets large. It’s also worth remembering this asset class isn’t universally higher-risk on paper: recent DSCR borrower profiles reported industry-wide run credit scores in the 730s with average LTVs in the high-60s, closer to conforming production than most people assume. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Some investment properties qualify partly on rental income instead of deposits. For these, appraisers typically pull two Fannie Mae forms. They use Form 1007 for a single-family rental. They use Form 1025 for a small multifamily property. These are standardized valuation tools. The non-QM market borrows them, even though the loan itself never touches Fannie Mae. There’s one limitation worth knowing: Form 1007 was built around monthly-lease comparables and doesn’t fit a property being run as a short-term rental. So if an investor plans to earn nightly-rate income on the property, they should expect a documentation conversation. This happens before the appraisal even gets ordered.
What the Investor Decision Actually Looks Like
The real choice most high-net-worth borrowers face isn’t whether they qualify — it’s which lever to pull. A borrower who wants maximum leverage accepts a tighter reserve requirement and a higher credit bar at the top of each band. A borrower who wants to preserve liquidity accepts a lower LTV and puts more down, keeping reserves comfortable above the minimum. Neither choice is free, and the two variables trade against each other constantly across every size tier in the ladders above.
Deposit-based qualification isn’t automatically the right path for every borrower. Take a property investor whose target property’s rent alone would comfortably cover the payment. That investor might do better qualifying that specific purchase on the property’s own income, rather than on personal deposits. This is a comparison worth running side by side. Don’t assume one path fits every deal. Lendmire’s comparison of DSCR loans against bank statement loans walks through exactly when each path wins.
Tax treatment on any of these structures depends on how the loan proceeds are used and how the property is held, so borrowers should keep clean records and talk to a qualified tax professional before relying on any deduction assumption.
Lendmire arranges these files as a broker. It works across select lenders in its wholesale network. Its consumer mortgage lending is licensed in 16 states. Lendmire is never a lender itself. It can never promise an outcome before underwriting reviews the specific file. Want a deeper walkthrough of how leverage and reserves interact across the full size range? Lendmire’s super jumbo bank statement reserves and leverage guide covers the mechanics in more depth. And its complete DSCR loans guide is the reference point for investors weighing a property-income path instead.
Frequently Asked Questions
Does a bigger down payment always fix a reserve shortfall?
No. A larger down payment lowers the loan amount and can move a file into a friendlier leverage band, but it does nothing for the separate reserve requirement, which is measured in months of post-closing liquidity, not equity in the property. The two numbers are calculated independently.
Can cash-out proceeds count as reserves on a super-jumbo file?
Not once the file crosses into super-jumbo overlay territory — above $3,500,000 on a primary residence or $3,000,000 on a second home or investment property, cash-out proceeds specifically cannot be used to satisfy the reserve requirement. Below that threshold, treatment varies by program and should be confirmed on the specific file.
Why does a first-time real estate investor face higher reserves than an experienced landlord borrowing the same amount? Because reserves partly substitute for a payment history the lender can’t otherwise verify. An experienced landlord has existing rental payment history working in their favor; a first-time investor typically faces the full 12-month reserve requirement regardless of loan size, since there’s no track record to lean on as an offsetting factor.
Do second homes and investment properties always run exactly five points below a primary residence? Generally, yes, though the gap widens at some size tiers — particularly in the $2,500,000 to $4,000,000 range, where the investment-property and second-home ladders can run 10 to 15 points below the primary-residence figure at the same size. Always check the specific band rather than assuming a flat five-point rule.
What happens if 24 months of statements show a business that’s grown a lot in the second half? A 12-month lookback window will typically qualify at a higher income figure in that scenario, since it excludes the earlier, lower-revenue months from the average. A 24-month window smooths that growth out, which usually produces a lower coverage figure but a steadier one. Which window a lender uses often depends on the specific program.
Investors can talk through where a specific file lands on these ladders by calling Lendmire at 828-256-2183 or requesting a quote directly.
This article is for informational purposes only and is not a commitment to lend. Loan programs, terms, and availability are subject to change and full underwriting approval, and vary by borrower, property, and lender guidelines.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 40 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 2026).
Lendmire’s Top Mortgage Workplace recognition is documented by Scotsman Guide 2025 Top Mortgage Workplace and Scotsman Guide 2026 Top Mortgage Workplace.
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References
1. HousingWire — Non-QM Borrower Trends
2. Scotsman Guide — Warnings Flash in the Low-Doc, Low-Credit-Score, High-LTV Corner of Non-QM Lending
3. Fannie Mae Appraiser Update, June 2024
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.
