The Quick Read: Keeping fees down on a super jumbo DSCR cash-out comes from structuring the whole loan well, not from finding one magic program. Total cost depends on your loan size, your prepayment terms, your third-party costs, and how long you plan to hold. The best program for your situation turns on your loan band, credit, and rent coverage, and a broker can shop several wholesale lenders to match it.
- Cash-out exists only on loans up to $3,000,000 in the network Lendmire works with. Above that, the options are a purchase or a rate-and-term refinance.
- Leverage steps down by loan size, not by property value, so the size of the loan you choose is your biggest decision.
- Fees come from separate levers: origination, upfront pricing, prepayment terms, appraisals, and third-party work. Compare them as one all-in picture.
- A lower upfront cost often means higher pricing somewhere else. Your hold period decides which trade makes sense.
- Every figure here is a ceiling or typical range through select wholesale programs, subject to underwriting.
What Counts as Super Jumbo, and Who Sets the Line?
No regulator draws the super jumbo line. Each lender sets its own. In the wholesale network Lendmire works with, the standard DSCR program stops at $3,000,000, and the super jumbo ladder carries qualified investors from $150,000 up to $10,000,000. Short-term-rental files stop at $2,000,000.
Scotsman Guide, a mortgage trade publication, notes that a non-QM jumbo loan can provide financing of $3 million or more. It also calls DSCR loans a common tool for real estate investors.
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 loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
For the full basics, see Lendmire’s complete DSCR loans guide.
Key Terms Defined
DSCR (debt service coverage ratio): the property’s monthly rent divided by its full monthly housing obligation. That obligation is principal, interest, taxes, insurance, and any HOA dues.
Super jumbo: a loan above the size most lenders treat as ordinary jumbo. The cutoff is lender-defined, and on this page it means balances up to $10,000,000.
Cash-out refinance: a new loan that pays off the old one and puts the leftover equity in your hands. The leftover is the cash to borrower.
Non-QM: a loan the government-sponsored enterprises cannot buy. Scotsman Guide describes DSCR loans as non-QM loans secured by a property’s expected cash flow.
Prepayment penalty: a charge for paying the loan off early. It is usually a percentage of the balance that shrinks over a set number of years.
Reserves: cash you must keep after closing. On this program it covers six months of the monthly obligation on the subject property, or twelve months for first-time investors.
ITIA: interest, taxes, insurance, and association dues. Interest-only loans measure reserves and coverage on it instead of full payment.
How a Super Jumbo DSCR Cash-Out Works, Step by Step
Two tests run side by side: equity and rent. The tighter one sets your cash. Here is the sequence.
1. The appraisal sets value and a market-rent opinion. One-unit properties use a rent schedule form called Form 1007. Two- to four-unit properties use Form 1025. DSCR is not an agency product. Above $2,000,000, expect two appraisals.
2. Equity test. Lenders take appraised value times the cash-out leverage for your loan band.
3. Rent test. Lenders find the loan amount the rent supports at the required coverage. Coverage is monthly rent divided by the full monthly obligation, including HOA dues. A textbook DSCR uses net operating income instead. Lender versions are simpler, so ask which one your lender applies.
4. The lower of the two tests wins. That is your maximum loan.
5. Payoff and costs come out. The new loan, minus the old payoff, closing costs, and any reserves funded from proceeds, equals your cash.
6. Reserves stay behind. Cash-out proceeds never count toward the reserve requirement. That cash is locked up and cuts what you can actually spend. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
One practical trap: a small appraisal miss can flip a cash-out file into a cash-to-close file. A low rent opinion can sink the file even when value holds.
Prefer to skip traditional personal-income documentation? Lendmire’s piece Best Super Jumbo DSCR Cash-Out Refinance Program Without Counting Personal Income covers that angle.
Where Does Cash-Out Exist at Your Loan Size?
Cash-out stops at $3,000,000. Between $150,000 and $3,000,000 it exists, but leverage drops as the loan grows. The bands below are loan amounts, never purchase prices. Work out your loan first, then read your band.
| 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 | — |
These are ceilings on investment property at coverage of 1.00 or better, through select wholesale programs, subject to underwriting. Above $4,000,000, every file is reviewed case by case before submission.
Credit works the same way. The program floor is 660 on loans to $3,000,000 and 700 above that. The top cell in each band needs more. The top cash-out cell on a loan up to $1,000,000 needs 660 or better. Between $1,000,000 and $1,500,000 it needs 700 or better. Between $1,500,000 and $3,000,000 it needs 720 or better. A lower score takes a lower leverage cell inside the same band.
Proceeds have their own limits. They are unlimited at or below 60% LTV on an investment-property cash-out. Above 60%, they are capped at $1,500,000. Borrowers with credit of 680 or below get no cash-out above a $1,500,000 loan. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Is There a Best Super Jumbo DSCR Cash-Out Refinance Program?
No single program wins for everyone, because the best program for your situation depends on your loan band, credit, coverage, property type, and hold period. Any list that ranks lenders without knowing those inputs is guessing.
A broker’s job is to match the file to the program. Lendmire is a mortgage broker. It arranges financing through select lenders in a wholesale network across 41 markets, including Washington, D.C. It does not lend. The lenders that write your loan will depend on your numbers, and each reviews the file on its own guidelines.
That is also why “lowest fees” is the wrong target on its own. A program with thin upfront costs can carry a long prepayment penalty. A program with a generous lender credit can carry higher pricing for the life of the loan. The goal is the lowest total cost over the time you will actually hold the loan.
The Cost Levers That Decide Total Fees
Fees on these loans come from separate sources. Each moves independently, and each trades against the others.
| Cost lever | Who charges | Negotiable? | Scales with loan size? |
|---|---|---|---|
| Origination or broker pay | Lender or broker | Often | Usually by percent |
| Upfront pricing (points) | Lender | Yes, trades vs. pricing | By percent |
| Prepayment penalty | Lender sets structure | Structure, yes | Exit cost grows |
| Appraisals | Appraisers | Rarely | Two above $2M |
| Title, escrow, legal, entity work | Third parties | Limited | Partly |
| Lender credit | Lender | Funded by pricing | Offsets costs |
Three points deserve more explanation.
Prepayment terms. A longer or heavier penalty usually buys pricing relief, because the lender is protected for longer. The penalty structure matters as much as the length. A descending structure, where the charge shrinks each year, costs less to leave early than a flat one. Availability also varies by state, so confirm it before you plan around it. Choose the shortest penalty that still fits your plan. If you may sell or exchange within a few years, a long penalty can erase whatever pricing relief it bought.
Lender credits. A no-cost refinance does not make the costs vanish. A credit usually means higher pricing is paying them. Check whether the credit covers third-party costs or only the lender’s own charges.
Fixed versus percentage costs. Appraisals, title work, and entity documents are largely fixed. Origination and upfront pricing scale with the balance. A smaller loan carries those fixed costs as a larger share of the loan. At super jumbo size, the opposite problem shows up: two appraisals and heavier title work add real third-party cost, and the percentage-based charges grow with the balance.
A Worked Comparison: Three Ways to Price the Same Loan
Say you hold one rental and want to refinance it into a single new loan. Everything about the property and borrower stays the same. Only the pricing structure changes. This is a modeled illustration, not a quote.
- Offer A: No prepayment penalty, higher ongoing pricing, moderate upfront cost.
- Offer B: A multi-year descending penalty, better ongoing pricing, moderate upfront cost.
- Offer C: A lender credit that covers third-party costs, higher ongoing pricing, almost nothing out of pocket at closing.
Now run it against your plan.
- Selling or exchanging within a few years: Offer A usually wins. You pay more as you hold, but you never pay an exit charge.
- Holding five or more years: Offer B usually wins, because the pricing relief compounds while the penalty fades.
- Holding through uncertainty: Offer C feels more affordable on day one. Over a long hold, higher pricing can cost more than the closing costs it covered.
The method is the same on any file. Add up upfront costs, add the expected exit cost for your hold period, and compare the totals over that period. Ask each lender for a written breakdown so the three numbers sit side by side.
Where the General Rule Breaks
The ladder and the cost levers hold for most standard rentals. These cases bend them.
Loans above $3,000,000. No cash-out in this network. Investors who want equity from a high-value property often stage it through smaller loans on other properties.
Credit of 680 or below. No cash-out above a $1,500,000 loan, even inside the band that otherwise allows it.
Short-term rentals. Coverage must be 1.00 or higher, and loans top out at $2,000,000. Income comes from twelve months of operating history on a refinance, counted at 80% of gross. Borrowers must be experienced, meaning twelve months owning income property in the last thirty-six. Cash-out leverage sits below the long-term-rental ladder. Permission must be documented for the specific property.
Condotels. Cash-out is capped at 65% on a refinance and $1,500,000, with $250,000 cash-in-hand. The tightest of the stacked limits wins.
New tenants. Lenders count the lower of the signed lease or the appraiser’s market rent. About six months of ownership seasoning still applies.
Interest-only files. The 120-month interest-only period runs on 30- and 40-year terms, up to 75% leverage on interest-only files. Qualification and reserves are measured on ITIA. That can ease coverage on a stretched file, but the balance does not shrink during the period. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Rural and acreage. Rural collateral is allowed only on loans at or below $3,000,000. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one.
Coverage below 1.00. Programs below 1.00 coverage exist through select lenders in the network, but LTV and terms adjust, subject to underwriting.
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.
How Your Loan Size Choice Changes Total Cost
The ladder reads by loan, so your decision is how big a loan to take. Picture a borrower sized near a $1,440,000 loan. That file sits in the 70% cash-out band for an investment property, which sits in the $1,000,000 to $1,500,000 band. A borrower sized near $1,680,000 on the same property lands in the 60% cash-out band, and the top cell there needs credit of 720 or better. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Trimming the request to fit a lower loan band can raise the cash-out leverage cell, and a smaller loan also lowers the dollar cost of percentage-based charges. It also lowers the cash you take. The right call depends on what the cash is for.
Cash-out also raises the new payment, which lowers coverage. Run the coverage test on the new loan, not the old one. If you use proceeds for another purchase, keep clear records. Tax treatment can depend on how the funds are used and how the property is held; investors should speak with a qualified tax professional before relying on any deduction.
Market context, briefly: Scotsman Guide, citing Optimal Blue, reported DSCR investor loans at just over 32% of non-QM locks in one recent December. Non-QM exceeded 9% of all mortgage locks that month.
How to Compare Quotes
Use the same loan amount, property, and hold period for every quote. Then work through this list.
1. Ask for the total upfront cost in writing, split into lender charges and third-party charges.
2. Ask whether a lender credit is included, and what it covers.
3. Get the prepayment structure in full: length, step-down schedule, and whether your state allows it.
4. Ask whether the quote assumes one appraisal or two.
5. Confirm how the lender counts rent, whether lease, market rent, or operating history.
6. Check reserve requirements, and confirm that cash-out never counts toward them.
7. Ask how the broker is paid. A broker is paid by the lender, by the borrower, or sometimes both. Either way, compare the full terms across offers, not one line. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Red flags include a quote that shows a low upfront number but will not state the penalty, a vague line item with no name, and a lender credit with no description of what it covers. Another is a quote built on a leverage cell your loan band does not allow.
For vesting, entity ownership is welcome on this program, with no layered entities, subject to program terms. Have your entity documents ready before you ask for quotes. You can hold up to 20 financed properties under the program.
Frequently Asked Questions
Can I take cash out on a loan above $3,000,000?
Not in this network. Cash-out ends at $3,000,000. Above that, the available structures are a purchase or a rate-and-term refinance, at 65% leverage from $3,000,000 to $4,000,000 and 60% on review above $4,000,000. Investors who need equity from a high-value property often stage it through smaller loans or other properties.
Does a prepayment penalty lower my total cost?
It can, if you hold long enough. A longer penalty usually buys pricing relief, but it raises your exit cost if you sell or exchange early. A descending structure costs less to leave than a flat one. Match the penalty to your realistic hold period, and confirm your state permits it.
Do my cash-out proceeds count toward reserves?
No. Cash-out proceeds never satisfy reserves on this program. You need six months of the monthly obligation on the subject property, or twelve months if you are a first-time investor. Interest-only loans measure reserves on ITIA.
How much cash can I actually take out?
It is the new loan minus the payoff, closing costs, and any reserves funded from proceeds. The loan is the lower of what equity allows and what rent supports. Proceeds are unlimited at or below 60% LTV on an investment-property cash-out. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Do I pay more by going through a broker?
Not necessarily. A broker is paid by the lender or by the borrower, and you can compare the full terms across offers in writing. Ask each party for the total upfront cost, the pricing, and the prepayment terms. Then compare the all-in picture over your hold period.
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. Reach the team at 828-256-2183, or request a quote. Every file is underwritten individually, and nothing here is a commitment to lend.
A deeper walk-through of investment-property equity extraction lives in Lendmire’s guide to cash-out refinance on an investment property.
For current guidelines and terms, see Lendmire’s super jumbo DSCR loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
A DSCR-focused mortgage broker, Lendmire (NMLS# 2371349) places investor financing across 41 markets — 40 states plus Washington, D.C. — with DSCR eligibility generally reviewed by the lender on property cash flow instead of tax returns, subject to lender guidelines. Scotsman Guide named Lendmire a 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. Scotsman Guide — One out of 20 mortgages are non-QM, expect that to grow
2. Scotsman Guide — Alternative lending offers new pools for lenders to wade in
3. Scotsman Guide — December marks new record for non-QM volumes
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 When the Lender Requires a Rent Roll · Can You Get Approved for a Super Jumbo DSCR Cash-Out Refinance With Six Months Reserves?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.