The Quick Read: The best program depends on loan size, because the largest DSCR cash-out files are the ones where the cash you pull cannot be counted as your reserves. Plan to hold roughly six months of payment reserves outside the proceeds. Cash-out ends at $3,000,000, and requests above $4,000,000 are reviewed case by case before submission as purchase or rate-and-term only, subject to underwriting.
- Reserves typically run 6 months of PITIA on the subject property (interest, taxes and insurance only on interest-only loans), and 12 months for first-time investors.
- Cash-out leverage steps down as the loan grows, with the highest limits on loans up to $1,000,000 and lower limits from $1,500,000 to $3,000,000.
- Two appraisals are typical above $2,000,000.
- The right fit depends on your property, credit, leverage need and where your liquid cash sits.
All figures reflect select wholesale-network guidelines, are subject to underwriting, and are not a commitment to lend.
What Does “Super Jumbo” Mean in DSCR Lending?
“Super jumbo” has no official definition. A jumbo loan is one above the conforming limit, which varies by county and is set annually, with higher ceilings in high-cost areas. Anything beyond that is a label lenders attach to their own programs.
In DSCR lending, the term usually signals a loan large enough to trigger extra overlays. Those overlays are tighter credit, a second appraisal, lower leverage and stricter reserve treatment. Agency limits do not govern these loans. DSCR is a non-QM product, and Scotsman Guide notes that non-QM jumbos can reach $3 million or more.
Lendmire is a mortgage broker. It arranges business-purpose DSCR financing in 41 markets (40 states and Washington, D.C.) through a wholesale network of investor lenders. The brokerage does not lend. It matches a file to a program.
Key Terms Defined
Super jumbo: An informal label for loans large enough to trigger extra program overlays, not a regulatory category.
Cash-out refinance: A new loan that pays off the existing liens and returns the remaining equity to the borrower as cash.
Reserves: Liquid assets left after closing, counted in months of the property payment.
PITIA / ITIA: Principal, interest, taxes, insurance and association dues; on interest-only loans the principal drops out, leaving ITIA.
DSCR: Monthly rent divided by the monthly obligation on the property. It is the main gate on these files.
LTV: The new loan divided by the appraised value.
How Does Underwriting Treat Reserves on a Cash-Out Refinance?
Reserves are a second capital requirement, separate from the equity you are pulling. The lender wants proof that you can carry the property after closing without relying on the cash the loan just produced.
1. Value. An appraisal sets value, with a rent schedule. Above $2,000,000, two appraisals are typical across the programs in this range.
2. Leverage. The cash-out ladder sets the maximum loan for that value and size.
3. Coverage. Rent is tested against the payment on the new loan, not the old one. A larger cash-out raises the payment and lowers the ratio.
4. Credit. The score must support the leverage cell you want.
5. Reserves. The lender counts liquid assets after funds needed to close are subtracted, so the same dollar is never counted twice.
Typical reserves are 6 months on the subject property, and 12 months for first-time investors. No extra reserves are usually required for other financed properties, and a borrower can hold up to 20 financed properties on this program, subject to underwriting. Interest-only files measure reserves on ITIA rather than full PITIA.
Can Cash-Out Proceeds Count as Reserves?
It depends on the program and the loan size. Some smaller-balance programs let proceeds count toward reserves. At super jumbo sizes, that door generally closes, and on this program cash-out never satisfies reserves, subject to underwriting.
Many investors assume the refinance will fund its own cushion. If the program excludes proceeds, the cushion has to already sit in an account in the guarantor’s name.
Ask three questions before you choose a program:
- Do proceeds count toward reserves at my loan size?
- Do reserves have to sit in my name or can an entity hold them?
- Which asset types are accepted, and at what value?
Retirement accounts are typically discounted, and business funds, gifts and unvested assets typically do not count. Treat those as starting assumptions and confirm them per program.
How Does Cash-Out Leverage Change With Loan Size?
Cash-out leverage falls as the loan grows, and it ends at $3,000,000. The table shows cash-out ceilings through select wholesale programs at a coverage of 1.00 or higher, subject to underwriting.
| Loan band | Cash-out LTV ceiling |
|---|---|
| $150K–$1M | 75% |
| $1M–$1.5M | 70% |
| $1.5M–$2M | 60% |
| $2M–$3M | 60% |
| $3M and above | None |
Each band is a loan amount, not a purchase price. Multiply price by leverage first, then read the band for that loan. The top cell in each band also needs a minimum score: 660 or better on loans up to $1,000,000, 700 or better from $1,000,000 to $1,500,000, and 720 or better from $1,500,000 to $3,000,000. A lower score typically takes a lower-leverage cell in the same band.
Cash proceeds follow their own limits. Unlimited proceeds are available at or below 60% LTV, while above 60% the cap is $1,500,000. There is no cash-out above $3,000,000, and none for credit of 680 and below above $1,500,000. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Which Program Fits When Reserves Are the Binding Constraint?
The best program for your situation is the one whose reserve treatment matches where your liquidity actually sits. Because Lendmire shops multiple wholesale lenders, the useful question is not who is biggest. It is which program’s rules fit your balance sheet.
| Your situation | Likely lane |
|---|---|
| Loan to $3M, ample liquid cash outside the property | Standard cash-out ladder; reserves met from your own accounts |
| Loan to $3M, cash mostly in an LLC | Confirm that entity-held funds count before choosing |
| Needs cash-out above $3M | Not available; consider a smaller request or a payoff-only refinance |
| First-time investor | Plan for 12 months of reserves rather than 6 |
| Rent only partly covers the payment | Sub-1.00 coverage may be available through select lenders; LTV and terms adjust |
Above $3,000,000 the program also requires 700 or higher credit, 0x30x24 housing history, 48-month event seasoning, and U.S. citizen or permanent resident status. Rural property is excluded at that size, and acreage is capped at ten acres on a non-rural property.
What Are Your Options When You Are Short on Reserves?
A reserve shortfall is usually fixable, but each fix has a cost. The common paths:
- Borrow less. A smaller cash-out lowers the payment, improves coverage and may move the loan into a better band. The cost is less cash.
- Bring outside cash. Seasoned liquid funds in your name close the gap directly.
- Pull equity elsewhere. A cash-out on a different property can fund reserves for this one, if that property is reviewed on its own.
- Stage the refinance. A payoff-only refinance now with a smaller request later can work if the plan allows time.
- Move the account. Funds sitting in an entity or a partner’s name may not count until retitled.
The trade-off is real. Borrowing less is the cleanest fix, but it defeats the purpose if you need the full proceeds for the next acquisition. If that is your situation, the better question is whether the next deal pencils at all with a larger reserve drag.
Lendmire’s piece Best Super Jumbo DSCR Cash-Out Refinance Program When Two Appraisals Are Required covers the valuation side of the same size tier.
Worked Example: Loan, Proceeds and Reserves as Three Buckets
Picture an investor refinancing a luxury rental valued at $4,000,000 with a small existing balance. At the 60% cash-out ceiling, the resulting loan lands inside the $2M–$3M band, where 60% is the cash-out ceiling and a minimum score of 720 supports the top cell. Because 60% LTV is the ceiling, unlimited proceeds apply at that leverage, subject to underwriting; above 60% LTV the proceeds cap is $1,500,000. Two appraisals apply, since the loan is above $2,000,000. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Now separate the buckets:
1. The loan. Set by value and the cash-out ladder.
2. The proceeds. The loan minus payoff, closing costs and any holdbacks. These go to the investor and, on this size, do not count as reserves.
3. The reserves. Six months of PITIA on the subject property, held in accounts already owned before the closing, after funds to close are subtracted.
If rent covers the new payment at about 1.0x or better, the file gets the full ladder. If coverage lands between 0.75 and 0.99, a select program may still review it at reduced leverage, with LTV and terms adjusting. If the investor selects interest-only, the 120-month period is available to a 75% maximum with coverage of 0.75 or better, qualified on ITIA, which lowers the reserve base.
The point of the exercise: three buckets, three separate tests. A strong rent ratio does not fix a thin reserve account.
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.
Where Does the General Rule Break?
A few edge cases change the plan.
Short-term rentals. Coverage of 1.00 or higher is required, loans reach $2,000,000, and income is twelve months of operating history on a refinance, counted at 80% of gross rent. Only experienced investors qualify, 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.
Condos. Warrantable and non-warrantable condos are eligible, with non-warrantable limited to 75% and $1,500,000.
Rural and acreage. Rural collateral of five acres or less is available to 75% on loans at or below $3,000,000. Above $3,000,000, no rural property is accepted, and no more than ten acres on a non-rural one.
No-ratio. Through select wholesale programs, no-ratio files are available to $2,000,000, subject to underwriting, with a seven-year clean housing history and 0x30x24. These lean on credit, leverage and reserves, which is exactly why reserve proof matters more there.
Above $4,000,000. Every request is reviewed case by case before submission and is purchase or rate-and-term only, so there is no cash-out at all.
Common Misconceptions
“DSCR means no documentation.” That is not accurate. Files still need leases or a rent estimate, an appraisal with rent schedule, entity documents and proof of reserves. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
“Max LTV applies to the cash I receive.” It applies to the new loan.
“My old payment sets the coverage test.” The new loan does.
“Super jumbo is a legal category.” It is an informal label.
“Strong credit erases a reserve minimum.” Compensating factors can help leverage and pricing discussions, but they do not typically waive a stated reserve requirement.
Reserve Checklist Before You Submit
- Recent statements for each reserve account.
- Account titles that match the guarantor.
- A running subtotal after subtracting funds needed to close.
- Leases, or rent evidence for the appraisal’s rent schedule.
- Entity documents with no layered entities.
- A written use-of-proceeds statement for the 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. For the full framework, see the complete DSCR loans guide.
Frequently Asked Questions
Do cash-out proceeds count toward reserves on a super jumbo DSCR loan?
Typically not at the largest sizes. On this program, cash-out never satisfies reserves, and cash-out itself is not offered above $3,000,000.
How many months of reserves should I expect?
Six months of PITIA on the subject property is typical, and twelve months for first-time investors. On interest-only loans, reserves are measured on interest, taxes and insurance. Subject to underwriting.
What happens if my request is too large for cash-out?
The file typically falls back to a payoff-only refinance. Leverage on that refinance tops out at 65% from $3M to $4M, and 60% from $4M on review, purchase or rate-and-term only. Many investors reduce the request to land in a band that allows cash-out.
Can reserves be held in my LLC?
Not always. Funds in an entity or a non-guarantor partner’s name may not count, so ask each program how it treats entity-held accounts before retitling anything.
Does my credit score change how much I can pull?
Yes. Each leverage cell needs a minimum score, and a lower score typically takes a lower-leverage cell. Above $3,000,000 the minimum is 700.
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. You can reach the team at 828-256-2183.
Investors weighing their equity options can start with Lendmire’s guide to cash-out refinance on an investment property.
Borrowers who also want to compare income-documentation paths can read Lendmire’s self-employed mortgages page.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits.
Scotsman Guide named Lendmire a Top Mortgage Workplace in 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. Scotsman Guide: One out of 20 mortgages are non-QM
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 After Buying a House All Cash
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
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.