The Quick Read: Through Lendmire’s wholesale network, a 75% cash-out refinance on an investment property applies only to loans up to $1,000,000. As the loan grows, cash-out leverage steps down to 70%, then 60%, and stops above $3,000,000, subject to underwriting. The best program for your situation depends on your loan band first, then rent coverage, then credit. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
- Loan size, not property value, decides your maximum cash-out leverage.
- Coverage of 1.00 or higher earns full leverage. Below 1.00 is possible through select programs, with reduced leverage.
- Two appraisals are expected above $2,000,000, and cash-out proceeds never count toward reserves.
- Above $3,000,000 the options are a rate-and-term refinance, a smaller balance, or staged debt. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
A DSCR loan is a loan sized on the property’s rent instead of your personal tax returns. This guide walks through how these files work at large balances. It also shows where 75% holds and where it does not.
Why 75% Does Not Follow You Up the Size Ladder
Seventy-five percent is the top cash-out leverage on investment property in Lendmire’s network, and it sits in the smallest band. Every step up in loan size trims the number. Lenders do this because large balances have a thinner resale market and a bigger loss if something goes wrong.
The table shows the ceilings for investment properties at coverage of 1.00 or higher. Every figure is a ceiling through select wholesale programs, subject to underwriting. The bands are loan amounts, never purchase prices.
| 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% | No cash-out |
| $4M–$6M | 60% on review | 60% on review | No cash-out |
| $6M–$10M | 60% on review | 60% on review | No cash-out |
Credit matters too, because each band’s top cell needs a certain score. The 75% cash-out cell needs credit of 660 or higher. The 70% cell in the $1,000,000 to $1,500,000 band needs 700 or higher. The 60% cells from $1,500,000 to $3,000,000 need 720 or higher. A lower score drops you to a lower cell inside the same band. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Above $4,000,000, every request is reviewed case by case before submission. It is purchase or rate-and-term only, with no cash-out. Nothing on this ladder runs above 80%, and 80% appears only on loans up to $1,000,000.
So the honest answer to the title is this. A true super jumbo cash-out at 75% does not exist on this ladder. The program that delivers 75% cash-out is the one where your new loan stays at or under $1,000,000. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
How a DSCR Cash-Out Refinance Works, Step by Step
A cash-out refinance replaces your current loan with a larger one and pays you the difference. On a DSCR file, the property’s rent has to support the new, larger loan. Here is the sequence.
Step 1: Size the loan by loan-to-value. Loan-to-value (LTV) is the new loan divided by the appraised value. Start with the value and the band ladder above. Cash to you equals the new loan, minus your payoff, minus closing costs.
Step 2: Test the coverage. Coverage is the monthly rent divided by the full monthly obligation. That obligation is principal, interest, taxes, insurance, and any association dues, together called PITIA. Coverage of 1.00 means the rent just covers the payment. A 1.00 reading earns full leverage on the ladder.
Programs also exist below 1.00 through select lenders in the network, up to $2,000,000. On those files, LTV and terms adjust, subject to underwriting. Your new payment is larger than your old one, so the rent that worked before may not work now.
Step 3: Order the appraisal. The appraisal sets the value for the LTV test. It also sets market rent for the coverage test. Appraisers typically use Form 1007 (a rent schedule) on single-family properties. They use Form 1025 (a small income property report) on two-to-four-unit properties. Above $2,000,000, two appraisals are expected.
Step 4: Check seasoning, reserves, and papers. Seasoning is the waiting period between buying a property and refinancing it, and it varies by program. Reserves are cash you keep after closing. The usual requirement is six months of PITIA on the subject property, or twelve months for first-time investors. On interest-only loans, reserves are counted on interest-only payments.
Cash-out proceeds never count toward reserves. The lender still wants the appraisal, rent evidence, credit, assets, and entity papers. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. That is not the same as no paperwork.
Step 5: Check the proceeds limits. Proceeds are unlimited at or below 60% LTV on a cash-out. Above 60%, proceeds are capped at $1,500,000. Borrowers at 680 credit or below get no cash-out above a $1,500,000 loan. In practice, the size ladder usually binds before the proceeds cap does.
The Three Gates That Decide Your Check
Every cash-out file passes through three gates. The smallest result wins. Value, rent coverage, and the loan-size ladder each set a ceiling on the new loan.
Run each gate on a modeled property rather than a market fact. The examples below are illustrations, not sourced rents or prices.
When value is the gate. You expect a certain appraised value, and the appraisal comes in lower. The same LTV now produces a smaller loan, so the cash to you shrinks. Rent and band are fine, but the value shrank the check.
When rent is the gate. Say a property has plenty of equity and sits well inside its band. The rent supports coverage of only about 0.9x on the larger new loan. The lender may cut the loan to fit coverage, even with LTV room left. Alternatively, a select program below 1.00 may apply at lower leverage, subject to underwriting.
When the ladder is the gate. Picture a property worth $4,000,000. A cash-out at 60% lands in the $2,000,000 to $3,000,000 band. Pushing leverage to 75% would carry the loan past $3,000,000, where cash-out stops. Quote the loan amount, not the price. A bigger loan can lower the leverage you are allowed. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Landing at or below 60% also removes the proceeds cap. For some owners, stepping down to 60% frees more cash than reaching for a higher percentage that sits in a tighter band.
What Counts as Super Jumbo?
Super jumbo is a lender’s label, not a legal category. A jumbo loan is any loan above the local conforming limit. As NAHB’s summary of the federal limits shows, the baseline for a one-unit property is $832,750. The ceiling in high-cost counties is $1,249,125.
Those limits decide eligibility for agency loans. DSCR loans sit outside that box. Most large-balance lenders treat loans of about $2,000,000 or more as super jumbo. In Lendmire’s network, the standard DSCR program stops at $3,000,000. The portfolio investor program carries qualified borrowers up to $10,000,000.
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 Register notes that investment-purpose loans are treated as business-purpose loans. This is why your rent is the qualifying figure rather than your salary.
Key Terms Defined
Super jumbo: a lender-defined tier for very large loan balances, often starting around $2,000,000.
DSCR (debt service coverage ratio): the property’s monthly rent divided by its full monthly obligation.
LTV (loan-to-value): the loan amount as a percentage of the property’s appraised value.
PITIA: principal, interest, taxes, insurance, and association dues, the full monthly cost of the loan.
Cash-out refinance: a new, larger loan that pays off the old one and puts the difference in your hands.
Reserves: liquid cash you hold after closing, counted in months of payments.
Seasoning: the time a lender wants you to own a property before refinancing it.
Non-warrantable condo: a condo project that falls outside standard agency eligibility rules, such as one with heavy investor ownership.
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.
Credit, Reserves, and Property Rules at Large Balances
The credit floor is 660 on loans up to $3,000,000. Above $3,000,000 the floor is 700. That overlay also brings tighter conditions: no late housing payments in the last 24 months, and 48 months since any credit event. It is limited to U.S. citizens and permanent residents. Cash-out proceeds still never satisfy reserves.
Property rules tighten as well. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one. On loans up to $3,000,000, up to twenty acres is allowed. Entity vesting is welcome, meaning an LLC can hold title, though layered entities are not accepted, subject to program terms. You can have up to 20 financed properties.
Condos and condotels get tighter limits. A condotel refinance tops out at 65% and a $1,500,000 loan. A separate Lendmire piece covers reserve requirements for super jumbo purchases and cash-outs. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Market data points the same way. Scotsman Guide reports, citing CoreLogic data, that the average non-QM borrower credit score was 776 in the most recent full-year data, on par with conventional borrowers. Non-QM does not mean weak credit. In the network, the floor is 660 and then 700 above $3,000,000, and the higher cells need higher scores.
Interest-Only and Short-Term Rentals
Interest-only structures are common at large balances. On 30- and 40-year terms, the interest-only period can run 120 months, with leverage capped at 75% on an interest-only loan. The lender reviews your file on the interest-only payment, so the coverage test is gentler during that window. The trade-off is that you build no equity through payments, and the payment steps up when the period ends.
Short-term rentals follow different math. They need coverage of 1.00 or higher, and loans go up to $2,000,000. Income is counted from twelve months of operating history on a refinance, at 80% of gross. These files are for experienced investors only, meaning twelve months owning income property in the last thirty-six. 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. Permission to operate is documented for each specific property.
How to Judge “Best” When You Are Shopping
There is no single best program. The best program for your situation depends on the loan band, the property type, your credit profile, and how much cash you need. A broker that shops multiple wholesale lenders can match your file to the program that fits. The lenders that write large-balance cash-out loans differ on the points below.
| Criterion | What to check |
|---|---|
| Leverage by band | Your cell on the ladder, not the headline number |
| Proceeds limits | Cap above 60% LTV, and credit-based limits |
| Appraisals | Two required above $2,000,000 |
| Reserves | Months required, and what counts toward them |
| Coverage below 1.00 | Whether a select program exists and how terms adjust |
| Entity rules | LLC vesting allowed, layered entities not |
| Interest-only | Length of the period and the 75% cap |
Non-QM loans with high LTV and weak credit show more late payments. See the dv01 data reported by Scotsman Guide. That is part of why lenders lower leverage as balances grow. Programs and guidelines change, and every file is underwritten individually.
When Cash-Out Is the Wrong Tool
Cash-out is the wrong tool in four situations. First, your new payment would push coverage near the edge. A bigger loan raises the payment, and a coverage reading above 1.00 does not cover repairs, vacancy, or management. Second, your loan would land above $3,000,000, where cash-out is unavailable. Third, your credit sits at 680 or below and the loan is above $1,500,000. Fourth, your goal needs more cash than the ladder allows.
When cash-out is capped, there are three common moves. You can refinance on a rate-and-term basis and borrow elsewhere. You can split the debt across properties. Or you can lower the new loan to 60% LTV to remove the proceeds cap. If you plan to deploy proceeds into another purchase, keep clear records of how the funds are used. 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. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Pre-Application Checklist
Gather these before you talk to a broker:
- The current payoff and the estimated property value.
- The current lease or rent roll, or twelve months of booking history for a short-term rental.
- Credit score and housing payment history.
- Liquid assets for reserves, separate from expected cash-out.
- Entity papers if an LLC holds title.
- A plain statement of what you will do with the proceeds.
Lendmire’s complete DSCR loans guide covers the basics if the terms above are new to you.
Frequently Asked Questions
What is the maximum cash-out on a super jumbo DSCR loan?
It depends on the loan band. On an investment property, the ceiling is 75% on loans up to $1,000,000, 70% from $1,000,000 to $1,500,000, and 60% from $1,500,000 to $3,000,000. Above $3,000,000 there is no cash-out. These are ceilings through select wholesale programs, subject to underwriting. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Do I need 1.00 coverage to cash out?
Coverage of 1.00 or higher earns full leverage. Select programs in the network reach below 1.00 up to $2,000,000, at reduced leverage. LTV and terms adjust, subject to underwriting, and short-term rentals need 1.00 or higher.
What if my loan would be above $3,000,000?
Cash-out is not available on that size. You can pursue a rate-and-term refinance, which is reviewed case by case above $4,000,000. You can also take a smaller balance that fits the ladder, or stage the debt.
Can an LLC borrow on a super jumbo cash-out?
Yes, in most cases. Entity vesting is welcome, subject to lender program eligibility, though layered entities are not accepted. The file still needs entity papers and a guarantor.
What credit score do I need?
The floor is 660 up to $3,000,000 and 700 above it. Each band’s top leverage needs more: 660 or higher for 75% cash-out, 700 or higher at 70%, and 720 or higher at 60%. A lower score takes a lower cell in the same band. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
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. Lendmire is a mortgage broker arranging business-purpose financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Nothing here is a commitment to lend. The final call on loan size belongs to the appraisal and the lender, not to the headline percentage.
Investors weighing their equity options can start with 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 non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide 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. NAHB: 2026 Conforming Loan Limits
2. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
3. Scotsman Guide: Non-QM Loans Prove a Stable, Crucial Option
4. Scotsman Guide: Warnings Flash in the Low-Doc, Low-Credit-Score, High-LTV Corner of Non-QM Lending
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 Refinance a Maturing Bank Loan With a Super Jumbo DSCR Loan · Super Jumbo DSCR Cash-Out Refinance Requirements When Rent Covers Only 90% of Payment · Super Jumbo DSCR Cash-Out Refinance Requirements When Two Appraisals Are Required
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.