Bank Statement Loans In St. Simons Island — The Quick Read: A super jumbo bank statement loan lets a self-employed borrower qualify on bank deposits instead of traditional personal-income documentation, for loan amounts that run from roughly $300,000 up to $30 million through select lenders in Lendmire’s wholesale network. Leverage steps down as the loan size grows, credit and seasoning rules tighten above roughly $3.5 million, and every file above $4 million gets reviewed case by case before it’s submitted. High-value coastal purchases — on barrier islands like St. Simons Island, Kiawah Island, or Amelia Island — are exactly the kind of property where this structure gets used, because the buyers are often founders, physicians, or investors whose traditional personal-income documentation understate what they actually earn.
Key Takeaways
- Bank statement loans qualify a borrower on deposits, not adjusted gross income, and they fall inside the Non-QM category rather than the agency box.
- Loan size runs through two separate wholesale structures: a portfolio non-QM program to roughly $6 million, and a bank portfolio program using 12-month statements that carries files to $30 million on its own leverage ladder.
- Leverage drops as the loan gets bigger. A $500,000 purchase and a $5 million purchase are not underwritten on the same grid.
- Above $3.5 million on a primary home (or $3 million on a second home or investment property), a tighter set of overlays applies — higher credit floor, longer seasoning, no rural property.
- Once a portfolio grows past the agency limit of 10 financed properties, many investors shift from personal-income documentation toward DSCR loans that qualify on the property’s rent instead.
What a Bank Statement Loan Actually Replaces
A bank statement loan replaces traditional personal-income documents with deposit history. Instead of averaging two years of adjusted gross income, the lender reviews 12 or 24 straight months of personal or business bank statements. The lender then calculates qualifying income from the deposits shown there.
This documentation style sits inside the Non-QM category, a segment trade press describes as loans that don’t meet agency purchase criteria, with DSCR loans forming a related but separate branch secured by the property’s own cash flow rather than the borrower’s income (Scotsman Guide). Bank statement and DSCR are cousins, not the same product. A bank statement file still looks at the person. A DSCR file looks at the rent roll.
Self-employed borrowers use this path because traditional income documentation tell a different story than the bank account does. A business owner who writes off a large share of gross revenue for tax purposes often shows a taxable income figure that’s a fraction of what actually moves through the accounts each month. Bank statement underwriting is built to capture that gap.
How Underwriting Actually Treats the File
Deposit review starts by separating personal deposits from business deposits. Then an expense factor is applied to the business side. Across Lendmire’s wholesale network, the expense ratio typically rises with staffing size and business type. It goes up as employee counts grow, or when the business sells a product instead of a service. A borrower can also submit an accountant-prepared ratio. Or they can use a profit-and-loss method, capped at 80%, if the standard bands don’t match the real cost structure.
Transfers from the borrower’s own business account into a personal account count in full — no haircut. Statements have to be consecutive; a printed transaction history from a bank teller doesn’t substitute for actual statements, and most lenders in this space will kick a file back if the paper trail has gaps.
Business ownership matters too. A borrower typically needs at least 25% ownership stake in the business for its bank statements to count toward qualifying income. Below that threshold, the file usually needs a different documentation path.
Underwriters also look past the total deposit amount. They check where deposits come from, how often they happen, who owns the account, and whether anything looks inconsistent with a real, active business. If the numbers don’t add up cleanly, the file typically needs more documents. These can include invoices, contracts, a CPA letter, or a written business narrative before the file can move forward.
The Size Ladder: Two Programs, Not One
There isn’t a single leverage grid that covers a $400,000 purchase and a $12 million purchase. Lendmire places these files through two separate wholesale structures, and which one applies depends almost entirely on loan amount.
| Program | Loan Size Range | Leverage Ceiling |
|---|---|---|
| Portfolio non-QM (bank statement) | $300K–$6M | Per leverage ladder below |
| Bank portfolio (12-month statements) | Above $4M–$30M | 65% to $5M, 60% to $10M, 55% to $30M |
The bank program’s own ladder begins above $4 million and overlaps the portfolio program up to $6 million — both can apply in that band, and the file gets shopped to whichever program fits the borrower’s credit and reserve profile. Above $6 million, the bank program stands alone. Interest-only pricing on the bank program is capped at 60% LTV or the band’s own ceiling, whichever is lower. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Where Leverage Actually Lands by Loan Size
Leverage steps down as the loan gets bigger, and it steps down faster for a non-owner-occupied property than for a primary residence.
| Loan Amount | Primary Residence Purchase LTV | Credit Floor |
|---|---|---|
| $300K–$1M | Up to 90% | 680+ |
| $1M–$2M | Up to 85% | 700–720+ |
| $2M–$3.5M | 75–80% | 720+ |
| $3.5M–$4M | 75% | 760+ |
| $4M–$6M | 60–65% (case-by-case) | 680+ |
| $6M–$30M | 55–60% (bank program, case-by-case) | 680+ |
Second homes and investment properties run several points lower at every tier, and the gap widens the higher the loan amount climbs. A $3 million investment property purchase, for example, tops out well below the 75% a primary residence gets at the same size — closer to 60% once the file crosses that band. Above $1 million, a 90% purchase never applies on any occupancy type; that ceiling belongs only to the smallest band.
Every figure above $4 million gets reviewed case by case before submission, regardless of occupancy. That’s not a formality — it means the leverage numbers in the table are ceilings a strong file might reach, not a guarantee any specific borrower gets that number.
The Overlays That Kick In Above the Super-Jumbo Line
Above $3.5 million on a primary residence, or $3 million on a second home or investment property, extra rules apply on top of the standard grid. These include a 700 credit floor, a clean 0x30x24 housing payment history, 48-month seasoning on any credit event, and eligibility limited to U.S. citizens and permanent residents. Non-occupant co-borrowers aren’t allowed at this level, rural property is excluded entirely, and any land parcel is capped at ten acres. Cash-out proceeds also can’t count toward reserve requirements here — reserves must come from separate funds that are already seasoned. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
This is the practical definition of “super jumbo” in Lendmire’s network: not a single dollar threshold, but the point where the overlay stack tightens as a group. That matches how the industry treats the label generally — there’s no regulatory line here. One market summary places the informal starting point around $3 million, roughly four times the conforming loan limit, but notes lenders differ on where they draw it because no federal agency defines or regulates the category.
The Complete DSCR Loans Guide and the Business-Purpose Fork
Around this loan size, many investors must choose between two documentation paths. A bank statement loan still qualifies the borrower using personal cash flow, even in its business-purpose form. A DSCR loan is reviewed mainly on whether the property’s rental income covers the payment, subject to lender guidelines. With DSCR, the borrower’s personal deposits barely matter.
That fork matters most for two kinds of investors. The first is anyone whose personal income is genuinely thin or volatile even after deposit averaging — a property with strong, verifiable rent can carry the file when the borrower’s cash flow can’t. The second is any investor closing in on the agency limit of 10 financed properties, a cap that pushes growing portfolios toward DSCR structures that don’t count against that ceiling the same way (Scotsman Guide). For an investor building a portfolio on high-value coastal property, Lendmire’s complete DSCR loans guide covers that program side by side with this one.
Where the Standard Grid Breaks
A few situations don’t fit the leverage table cleanly.
Co-mingled accounts. When personal and business transactions run through the same account, deposit averaging stops being a simple math exercise. Personal and business deposits get evaluated under different rules, and a file with heavy co-mingling usually needs extra documentation to sort out which deposits actually count.
Missing paperwork defaults to the least favorable number. A borrower who wants the lower 20% expense ratio but can’t produce a CPA letter or profit-and-loss statement doesn’t get the benefit of the doubt. The file falls back to the standard, higher expense ratio instead.
Asset-based alternatives skip income math entirely. An asset allowance path divides liquid assets by 36, 60, or 84 months to produce a qualifying income figure — the 84-month, standalone version applies on any loan above $3.5 million. An assets-only path drops income calculation altogether and instead requires liquid U.S. assets equal to the loan amount plus closing costs plus 60 months of any net loss on other residential real estate. Retirement accounts count at 70% (80% once the borrower is past 59½); business funds, gifts, trusts other than a revocable living trust, unvested stock, and cryptocurrency don’t count at all.
Cash-out has a hard cap in the mid-tier. Below 60% LTV, cash-out proceeds are unlimited on the portfolio program. Above 60% LTV, cash-in-hand is capped at $1.5 million on that same program. The bank portfolio program doesn’t publish a comparable cap. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Property type changes the ceiling. Warrantable condos reach 85%, non-warrantable condos top out at 80%, and condotels are capped at 75% on purchase and 65% on cash-out through the portfolio program (50% on the bank program). Second homes are limited to one-unit properties only — no condotels, no duplexes. Rural property is capped at 80% LTV on ten acres or less and can never exceed $3 million, no matter how strong the file otherwise looks. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Lendmire’s wholesale reach for retail bank statement lending covers 16 states — Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington.
What the Documentation Actually Needs to Show
People who haven’t worked with non-QM lending often treat it as a shortcut. It isn’t one. Non-QM simply means a mortgage that falls outside the federal Qualified Mortgage definition. It still needs full underwriting, fair-lending compliance, and a documented ability-to-repay analysis. The file just uses a different type of documentation to get there.
Average non-QM borrower credit runs close to prime. Trade data puts the average non-QM borrower FICO at 776, on par with a typical conforming borrower, which undercuts the idea that alternative documentation signals higher risk (Scotsman Guide). Broader Non-QM guidance across the industry generally places typical LTV ceilings between 70% and 80% with 3 to 6 months of reserves (Zeitro) — figures that describe the market broadly, not the specific ladder Lendmire’s network runs, which is laid out above.
Reserve requirements in Lendmire’s network scale with loan size: 3 months of reserves to $500,000, 6 months to $1.5 million, and 9 months above that, plus 2 additional months per other financed property up to a 12-month ceiling. First-time real estate investors need a full 12 months of reserves regardless of loan size. Debt-to-income can run as high as 50%, and the credit floor is 660 on the portfolio program, 680 on the bank program, and 700 for any file crossing the super-jumbo overlay line described above.
For investment properties, appraisers typically document market rent using Fannie Mae’s Form 1007 rent schedule on single-unit properties, a form that originated in agency lending but is used broadly across non-agency files as the standard rent-documentation tool.
Making the Call: Bank Statement vs. the Alternative
A bank statement loan works best for self-employed buyers. Their business often makes real money, but conventional personal-income paperwork doesn’t show it. These buyers want their loan sized around personal deposits, not one property’s rent. This loan fits well for buying a primary residence. DSCR programs are different — they’re built for non-owner-occupied property and reviewed as business-purpose loans.
The math changes for an investor buying a pure rental, especially one who already has several financed properties. Here, deposit-based qualification just adds extra friction. The property’s own rent could avoid that friction instead. A DSCR structure looks at the asset, not the owner. It often clears the file with less back-and-forth. The math also changes for a borrower with steady traditional employment income and simple, standard personal-income documents. For this borrower, conventional jumbo underwriting is usually simpler. There’s no reason to add deposit-averaging complexity to a file that doesn’t need it.
Tax treatment on any of these structures depends on how funds are used and how the property is titled, so investors should keep clean records and talk to a qualified tax professional before relying on any deduction assumption.
Key Terms Defined
Non-QM (Non-Qualified Mortgage): a loan outside the federal Qualified Mortgage definition, underwritten with alternative documentation but still subject to full underwriting and ability-to-repay review.
Expense ratio: the percentage of business deposits treated as the cost of running the business, subtracted before the remainder counts as qualifying income.
Business-purpose loan: financing tied to a rental or investment property rather than a home the borrower occupies, reviewed around the property rather than the borrower’s personal finances alone.
Case-by-case review: the underwriting stance applied to every loan above $4 million in Lendmire’s network, meaning the published leverage figure is a ceiling, not a default outcome.
Asset allowance: an income-substitute calculation that divides a borrower’s liquid assets by a fixed term (36, 60, or 84 months) to produce a monthly qualifying figure.
Frequently Asked Questions
Is there an official dollar amount where a jumbo loan becomes a super jumbo loan? No. No federal agency defines or regulates the term. Lenders set their own thresholds, and within Lendmire’s network the practical dividing line sits around $3 million to $3.5 million, where a tighter set of credit, seasoning, and property overlays kicks in.
Can a self-employed borrower get a bank statement loan above $5 million? Yes, through Lendmire’s bank portfolio program, which uses 12 months of statements and carries eligible files to $30 million on its own leverage ladder — 65% to $5 million, 60% to $10 million, and 55% to $30 million, all reviewed case by case.
Do bank statement loans still require any conventional income documentation? Typically no traditional income documentation are required for qualifying income purposes; deposits carry that role instead. Some files still need supporting documents like a CPA letter or profit-and-loss statement if the standard expense ratio doesn’t fit the business.
Does a bank statement loan work for an investment property, or is that always DSCR? Both paths exist. A bank statement loan can finance an investment property and still is reviewed on the borrower’s deposits; a DSCR loan instead qualifies primarily on the property’s rental income covering the payment, subject to lender guidelines. Investors nearing the 10-financed-property agency ceiling often move toward DSCR specifically because it doesn’t lean on personal income documentation the same way.
What happens if a borrower’s accounts mix personal and business transactions? The file needs extra sorting. Underwriters evaluate personal and business deposits under different rules, so heavy co-mingling usually triggers a request for supporting documentation to establish which deposits should count toward qualifying income.
If a buyer is looking at a high-value coastal property and wants to see how a bank statement structure compares to a DSCR option for the same purchase, Lendmire can help compare the two paths based on the property, the borrower’s documentation, and the leverage each program actually supports. Reach Lendmire at 828-256-2183 or request a quote to start that comparison. Investors weighing similar coastal purchases can also review Lendmire’s coverage of bank statement loans on Kiawah Island and bank statement loans on Amelia Island for how the same structure applies on other barrier-island markets.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 40 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. Recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 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. Scotsman Guide — Alternative lending offers new pools for lenders to wade in
2. Scotsman Guide — To the Rescue with the Right Loan at the Right Time
3. Zeitro Non-QM Guidelines Overview
4. Fannie Mae Form 1007 — Single-Family Comparable Rent Schedule
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.
